Southeast Bank Annual Report 2016 PDF

COMMITTED TO
SUSTAINABLE GROWTH
TOGETHER
Nature has spirit and is the main seat of excellence. If we look deep
into nature, we get a variety of lessons from its different components
and forms. The gushing river heading towards the sea for awaited
unison teaches us to face odds with courage and fortitude. The
wonderful blooming flowers from the green teach us to smile. The lush
green grass signaling safety teaches us to be patient and generous. A
mountain with its huge strength teaches us determination. Beyond the
clouds, the sky is always blue and the sun is always shining. They want
us to be persistent and ready for the upcoming days. A small plant’s
gradual turning into a giant tree teaches us to pursue growth
trajectory with hope and tenacity. The change in nature with the
advent of each season displays that actions explain a lot more than
words do. Nature, as a whole, also teaches us integrity and stability.
Nature has many forms and patterns, and teaches us the benefit of
togetherness. It provides us sustenance and stimulates us to excel in
performance. It is our bounden duty to protect and nurture nature.
In the cover picture, the plant is growing into a better and more
advanced state by a process of evolution. So is our Bank. It is gradually
evolving into a higher stage and stature by execution of the strategies
of sustainable growth strongly supported by all stakeholders especially
the loyal customers. We submit ourselves to the nature’s intelligence to
rise up high. Our pursuit of sustainable growth path with the
togetherness of customers is a quest for superior performance for
continuous improvement. Ours is a safe depository for our all
stakeholders. Our pledge is to make it a customers’ coveted destination
and their preferred Bank to shape up their desired future. Together we
shall grow, excel and our actions shall determine our destination. We
firmly believe together we shall reach the goal we sincerely long for.
A N N U A L R E P O R T 2 0 1 6
COMMITTED TO
SUSTAINABLE GROWTH
TOGETHER
Table of
Contents
SEBL AT A GLANCE
Letter of Transmittal 4
Notice of the 22nd Annual General Meeting 5
Vision and Mission 7
Strategic Objectives, Planning and Priorities 9
Core Values, Code of Conduct and Ethical Principles 12
Corporate Profile 17
Corporate Philosophy and Business Model 18
22 Years of Glorious Journey 20
Awards and Recognitions 22
Corporate Organogram 25
Group Corporate Structure 26
Last 10 Years Financial Indicators 27
Forward Looking Ideology 28
PROFILE OF BOARD OF DIRECTORS AND REVIEW OF THE GROUP CHAIRMAN

Composition of Board of Directors and its Committees 29
Directors’ Profiles and their representation on Board of other Companies 36
Directors’ Responsibility Statement 48
Review from the office of the Group Chairman 50
Managing Director’s Review and Corporate Management 64
DIRECTORS’ REPORT 69
CORPORATE GOVERNANCE
Corporate Governance Report 85
Managing Director’s and CFO’s Declaration on Integrity of
Financial Statements to the Board 99
Management Review, Responsibility and Evaluation 100
Credit Rating 143
Audit Committee (Composition, Role, Meetings,
Attendance etc.) and Internal Control 144
Report of the Risk Management Committee 149
Evaluation of the Quarterly Financials by the
Audit Committee and by the Board 151
Report of the Bank’s Shariah Supervisory Committee 152
Capital Plan 154
RISK MANAGEMENT AND CONTROL FRAMEWORK
Report on Risk Management Framework,
Mitigation Methodology and Risk Reporting by CRO 159
Disclosure on Risk Based Capital Adequacy (Basel III) 166
Capital Market Exposure 177
SUSTAINABILITY APPRAISAL AND INTEGRATED REPORTING

Sustainability Report - At A Glimpse 180
Report on Corporate Social Responsibility 182
Environment Related Initiatives 186
Green Banking Initiatives – Environmental and Social Obligation 188
Integrated Reporting 189
Communication to Shareholders and Stakeholders 197
SEBL OUTLOOK
Products and Services 218
Caring for the Employees (Health and Safety) 224
Career Development Program 225
Contribution to National Exchequer 226
Empowering Women 226
Financial Inclusion: Mobile Banking Services – Telecash 230
Service Excellence in Action 231
Bank’s Network: List of Branches and ATMs 232
Memories of 21 AGM 242
st
FINANCIAL STATEMENTS
Independent Auditor’s Report to the Shareholders 260
Consolidated Balance Sheet 262
Consolidated Profit and Loss Account 264
Consolidated Cash Flow Statement 265
Consolidated Statement of Changes in Equity 266
Notes to the Financial Statements 272
FINANCIAL STATEMENTS OF ISLAMIC BANKING BRANCHES 344
FINANCIAL STATEMENTS OF OFFSHORE BANKING 354
FINANCIAL STATEMENTS OF SEBL SUBSIDIARIES 364
STANDARD DISCLOSURES CHECKLIST 419

SAFA Corporate Governance Disclosure Checklist 420
Integrated Reporting Checklist 422
SAFA Standard Disclosure Checklist 427
Important Financial Indicators with Quantitative and Qualitative Factors 430
Proxy Form and Attendance Slip 441
4 Southeast Bank Limited I Annual Report 2016
Letter of
Transmittal
All Shareholders of Southeast Bank Limited,
Bangladesh Bank,
Bangladesh Securities and Exchange Commission,
Registrar of Joint Stock Companies & Firms,
Dhaka Stock Exchange Limited and
Chittagong Stock Exchange Limited
Annual Report of Southeast Bank Limited for the Year -2016
Dear Sir,
Thank you for supporting us in the preceding years.
It is our immense pleasure to lay before you the Bank’s Annual Report-2016 along with the Audited Financial Statements
(consolidated and separate) as at and for the year ended 31st December, 2016. Annual Report-2016 of the Bank comprises
Balance Sheet, Profit and Loss Accounts, Statement of Changes in Equity, Cash Flow Statement along with Notes to the
Accounts.
Information given in our Annual Report-2016 is complete, full and in line with Bangladesh Accounting Standard and
International Accounting Standard. We hope that the report will be of use to you today and tomorrow.
Best regards,
Yours sincerely,
Muhammad Shahjahan
Additional Managing Director
& Company Secretary
Southeast Bank Limited I Annual Report 2016 5
Notice of the 22nd Annual
SEBL at a glance
General Meeting
Notice is hereby given to all members of Southeast Bank Limited that the 22nd Annual General Meeting of the Shareholders
of the Company will be held on Monday, May 22, 2017 at 11.00 a.m. at Officers’ Club Dhaka, 26 Baily Road, Dhaka
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 31st December,
2016 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 31st December, 2016.
3. To elect / re-elect Directors.
4. To appoint Auditors for the term until the next Annual General Meeting and fix their remuneration.
5. Miscellaneous, if any, with the permission of the chair.
All Members are requested to attend the meeting on the date, time and place mentioned above.

By order of the Board
Dated: May 07, 2017 Muhammad Shahjahan

and Company Secretary
NOTES
a) The Record Date for the purpose was on April 27, 2017.
b) Any member of the Company entitled to attend and vote at the general meeting may appoint a proxy to attend and vote
on his/her behalf. Such proxy except for a Corporation must also be a member of the Company. An Attorney of a member
need not himself/herself be a member.
c) The instrument appointing a Proxy or the Power of Attorney duly signed by the Member and stamped with requisite stamp
duty must be submitted at the Registered Office of the Company at least 48 hours before the meeting, i.e. latest by 11.00
a.m. of May 20, 2017.
d) Attendance of the Shareholder/Attorney/Proxy shall be recorded up to 11.30 a.m. at the entrance of the venue. Attendance
slip has to be submitted at the Registration Counter duly signed. The signature must agree with the recorded signature.
e) Annual Report containing, among other papers, this Notice of the 22nd Annual General Meeting, Attendance Slip and
Proxy Form are being sent to every member by post. The members may also collect “Proxy Form” from the Share Office of
the Company.
f ) All members are requested to update: (i) The particulars of their Bank Account (ii) Change of Address and (iii) 12 Digits Tax
Payer’s Identification Number (e-TIN) in their BOID through Depository Participants (DP) on or before May 15, 2017, with
intimation to us.
g) Brokerage Houses and DPs are requested to notify us in details showing Shareholder’s name, BOID Number, e-TIN, client-
wise shareholding position, Bank Account Number, Routing Number etc. of their Margin Loan holders who hold shares of
Southeast Bank Ltd. on the Record Date on or before May 15, 2017.
h) If any individual shareholder fails to provide us his/her e-TIN within May 15, 2017, his/her Income Tax at source will be
deducted from payable Dividend @15% (fifteen percent) instead to 10% (ten percent) as per amended Income Tax
Ordinance 1984 (Section 54)
PS: As per Bangladesh Securities and Exchange Commission’s Circular No.SEC/CMRRCD/2009-193/154 dated October
24, 2013, “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 22nd Annual General Meeting of the Bank.
Vision &
Mission
Our vision, mission and
value statements are the
keys to the philosophy
on which we base
ourselves on, what we
do and what we
want to be
Vision
To be a premier banking institution in
Bangladesh and contribute
significantly to the national economy.
Mission
High quality financial services with state of the art technology.
Fast 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.
Strategic Objectives
SEBL at a glance
a) Maintaining a high quality assets portfolio to achieve line with all six core risks in banking operation and
strong and sustainable returns and to continuously green banking and environmental risk management.
build shareholders’ value.
i) Practicing efficient corporate governance and
b) Maintaining adequate capital in line with risk appetite compliance processes through meeting all regulatory
of the Bank. requirements and disclosures in line with national
and international best practices by ensuring best
c) Strengthening trust and partnerships with customers
internal control monitoring practices.
by focusing on the Bank’s core values of quality
customer service, professionalism, teamwork and j) Upholding Bank’s brand image as a customer friendly
integrity. bank through efficient and prompt customer service,
product diversification with a view to establishing a
d) Hiring professionals with strong background and
long term profitable relationship with our customers.
knowledge.
k) Serving the society as part of our Corporate Social
e) Strengthening technologies that reduce operational
Responsibility (CSR) by giving stipends to poor
risks and promote the implementation of best
students, distributing warm clothes to winter-hit
practices in the industry.
people and contributing to the different relief fund.
f ) Developing innovative products and services that We also contribute to the society by paying taxes to
attract our targeted customers and market segments. the national exchequer timely.
g) Exploring new avenues for growth and profitability. l) Extending banking services to the un-banked people
for financial inclusion meeting socio-economic
h) Practicing efficient risk management principles in requirements.
Priorities followed in 2016

The Bank had the following plans and road-map for business success in 2016.
i) Excellence in banking operations through vii) Efficient Internal Control and Regulatory Compliance
maintaining strong fundamentals of Capital System
Adequacy, Business Diversification and Exploring
viii) Strong Human Resource Base
Non-funded Business
ix) Going green in the future of banking
ii) Prudent Asset Management
iii) Prudent Liability Management
iv) Excellence in Delivering Customer Service
v) Effective Risk Management
vi) Effective IT Framework and System

Strategic Priorities
We have strong conviction that SEBL will keep on Emphasizing Small and Medium Enterprises financing
flourishing as a leading financial institution of Bangladesh,
despite existence of external challenges: first, because Agricultural & Rural Credit through Micro Financial
we have a visionary Board, dynamic management and Institutions
an enthusiastic & skilled group of employee base that is
committed to working together to provide our customers Sustainable financing for Energy efficiency and
with excellent service; second, because we are building renewable energy projects
on a solid foundation of key strengths, including a strong
capital base, and excellent risk and cost management Arranging funds from overseas sources for Off-shore
skills; third, because we are strategically diversifying our banking service and long term foreign currency loans
business lines, products and locations; and finally, because for corporate clients
we have a clear focus on our strategy and where we need
to direct our efforts. Our strategic focus is built around a Integrated marketing development initiative by
few key priorities that will guide our actions as we move creation of customer oriented culture
forward over the next several years. They will serve as a
roadmap to help us navigate through the new landscape in Mobilizing remittance as a source of foreign currency
which we are now operating. Sustainable revenue growth,
capital management, leadership, prudent risk & appetite Strategic priorities for Capital management &
management, efficiency & expense management – will maintaining strong capital base:
be the pillars of our strategy in upcoming years. They will
play a critical role in our success and, given the ongoing SEBL is committed to consolidate its solid capital base to
market uncertainty, they deserve a prominent place in our support the risks associated with our diversified businesses,
strategic framework. while still providing investors with superior returns. We
actively manage our capital to support the execution of
Strategic priorities for sustainable revenue growth: our business strategies. Our goal is to achieve the lowest
cost of capital by managing its mix and by building our
Sustainable revenue growth comes from our ability to base through earnings and selective capital issues.
build relationships with our customers and creating niche
markets. We do this by providing our customers with Expediting borrowers’ rating
exceptional service, such us:
Concentrating on lending portfolio having lower
Ensuring quality customer service at primary capital charge
distribution channel such as Branch and development
of alternative delivery channels to improve customer Strengthening internal Capital adequacy assessment
experience
process (ICAP)
Developing and upgrading customized asset,
Preemptive preparation for Basel –III compliance
liability and transaction products for Retail, SME and
Corporate clients
Revising the capital allocation to business in line with
Mobilizing low cost sustainable deposit from retail revised capital adequacy target ratios
and institutional client base
Strategic priorities for Leadership/HR capacity
Increasing client base for financial inclusion and development
wider market penetration
SEBL’s success depends on having the right leaders to
Diversification and increasing loan clients and execute our strategy. For this reason, leadership remains
maintaining quality assets one of our strategic priorities. Our leadership strategy
continues to build competitive advantage through
Export expansion and diversification comprehensive development programs and tools.
Promoting Islamic banking through conventional Hiring the best talents in different arenas of Banking
branches
SEBL at a glance
Fostering a culture of creativity, innovation and Ensuring meticulous compliance of disbursement
diversity with a view to achieving sustainable procedures and monitoring and follow-up of each
business growth loan by the Branch manager to ensure in time
recovery
Developing a Human resource base by rendering
training and motivation so that they remain capable Strengthening recovery drive to bring down NPL at a
to lead new initiatives minimum level
Creating alignment between the leadership Ensuring efficient internal control and regulatory
development strategy and the business strategy compliance in all levels of banking operations
Evaluating employees based on Key Performance Efficiency and expense management

Indicators (KPIs)
Expense management is a traditional strength at SEBL –
Developing Human resource management system to and today, it’s more important than ever. While revenue
transform the organization growth is ultimately decided by our customers & external
factors, expenses are something we can control. At SEBL,
Strategic priorities for prudent risk & apatite we are carefully monitoring our spending and looking for
management ways to improve productivity by being innovative and
doing more with less. Our priorities are:
At SEBL, we are known for our risk management culture,
characterized by a conservative approach and rigorous Clear cost saving strategies
processes. We try to know our customer fully. But at the
heart of our strength is experience and good judgment. Business process reengineering (BPR) in different
business and operational areas to improve efficiency
For Credit Risk, our focus is developing a strategic
business plan for apatite management and structured Optimizing efficiency by budgetary control
policy guideline and framework in order to manage
default risk Paperless banking
Ensuring effective risk management system especially Implementing green office guide
prudent management of Asset Liability risk, Foreign
Exchange risk and Operational risk
Our Values
Serve as a compass for our action
and describe our direction.
Core Values
■ Integrity
■ Respect
■ Fairness
■ Harmony
■ Team Spirit
■ Courtesy
■ Commitment
■ Service Excellence
■ Insight and Spirit
■ Enthusiasm for work
■ Business Ethics
CORE
STRENGTHS
■ Professionally Strong Board of Directors ■ Focus on Diversification
■ Strong Capital Base ■ Quality Customer Service
■ Transparent and Quick Decision Making ■ Unique Corporate Culture
■ Efficient Team of Performers ■ Sharp bifurcation Between Board and
■ Satisfied Customers Management Functions
■ Effective Internal Control ■ Strong Asset Base
■ Skilled Risk Management
CORE
COMPETENCIES
■ Knowledge
■ Experience and Expertise
■ Customer Orientation and Focus
■ Transparency
■ Determination
■ Zeal for Improvement
■ Pursuit of Disciplined Growth Strategies
■ Reliability
Code of Conduct and Ethical

Principles
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 IN B. WE BELIEVE IN THE FOLLOWING PRINCIPLES IN

DEALING WITH CUSTOMERS DEALING WITH SHAREHOLDERS
1. Follow strict ethical banking practices. 1. Adequate disclosure of corporate information

and operational results to help them take suitable
2. Provide fair treatment to all customers, depositors investment decisions / options.
and borrowers without any discrimination.
2. Stable Dividend Policy
3. Provide speedy customer service at a very competitive
cost. 3. Dialogue with them and implement their suggestions
for improvement
4. Deal with customers in a transparent manner and
without any hidden cost. 4. Equal treatment to all shareholders irrespective of
their individual size of shareholding.
5. Maintain strict secrecy of customer account.
5. Effective Risk Management
6. Provide free financial advice to clients.
6. Maintenance of fairness and accuracy of financial
7. Deal quickly with complaints received from the reporting and records.
customers. We endeavour continuously to build
relationship of trust and understanding with our 7. Restrictions on insider trading.
customers.
C. WE ABIDE BY THE FOLLOWING PRINCIPLES IN
8. Give very competitive return to the depositors on DEALING WITH OUR REGULATORS
their investment.
1. We are transparent in operations and governance.
9. Listen to our customers and work for improvement of
customer service as per their suggestion. 2. We have a culture of timely compliance of regulatory
requirements.
10. Keep relations with customers in weal and woe.
3. We take their suggestions with utmost importance
11. Keep promises that we make. and implement those for improvement of our
corporate governance standard.
12. Take competitive service charges and rates.
4. We safeguard information and do not misuse it.
13. Discourage any sort of privilege/donation from
customer
SEBL at a glance
D. WE CONFORM TO THE FOLLOWING PRINCIPLES 7. We support the women as a community and
IN RESPECT OF OUR EMPLOYEES contribute to women empowerment.
1. We do not discriminate on grounds of religion, sex 8. We are keen to move fast for green banking to protect
or race at any stage. We recruit the best on the basis environment.
of merit under a rigorous recruitment policy without
any biasness or favoritism to anybody. F. WE DEVOTE TO THE FOLLOWING PRINCIPLES IN
RESPECT OF NATIONAL INTEREST
2. We pay competitive compensation package for the
really deserving employees. 1. We protect national interests.
3. We care for our employees and create an environment 2. We refrain from prohibited business.
to work together with dignity. 3. We promote causes for national upliftment.
4. We have clearly defined duties and responsibilities for 4. We support nation building efforts from our position.
each employee. No one is responsible for unassigned
jobs. Commitments to Clients
5. We have a zero tolerance to any act of dishonesty. Ours is a customer focused modern banking institution
in Bangladesh. We deliver unparalleled financial services
6. We provide a congenial work environment. to Retail, Small and Medium Scale Enterprises (SMEs),
7. We encourage freedom to our employees to Corporates, Institutions, Government, and individual
give opinion for both qualitative and quantitative clients through branches across the country. Our business
improvement of the Bank. initiatives center around the emerging demands of the
market. Our commitments to the clients are as follows:
8. We take care of their health and safety.
a) Provide service with high degree of professionalism
9. Our employees avoid conflict of interest. and use of modern technology.
10. Our employees obey code of conduct. b) Create long-term relationship based on mutual trust.
11. Professionalism, honesty, integrity and high moral c) Respond to customer needs with speed and accuracy.
and ethical standards are the creed of our employees.
d) Share their values and beliefs.
E. WE UPHOLD THE UNDER NOTED PRINCIPLES IN
RESPECT OF SOCIETY e) Grow as our customers grow.
1. We believe that the Bank gets business sustenance f ) Provide products and services at competitive price.
from the community in which it operates and, g) Ensure safety and security of customers’ valuables in
therefore, it must remain responsive to the trust with us
community and the society in reciprocity.
2. We discourage financing projects that are not

environment-friendly.
3. We provide material support for protection of

environment.
4. We give aid to the poor, helpless and natural calamity-

hit people.
5. We support charitable ventures.
6. We give sponsorships to sports, culture, education,

health-care and community development ventures.
Our Banking
Heritage
Southeast Bank Limited is a second-generation bank The Bank’s operations are built upon unequivocal
that was established in 1995 with a dream and a vision emphasis on effective corporate governance. The
to become a pioneer banking institution of the country objective is to create, promote and build long-term
and contribute significantly to the growth of the national company value. The Bank’s first and the highest priority
economy. The Bank’s journey began when it was is to provide effective services and maximum satisfaction
incorporated as a Public Limited Company on March 12, to the customers. The ethos of harmony and co-operation
1995. The Registrar of Joint Stock Companies and Firms is widely practiced in the Bank. We take pride in the
issued the Certificate of Commencement of Business of fact that the public and private face of the Bank is one
the Bank on the same date. The Southeast Bank received and identical. We believe that transparency in decision-
its Banking License from the Bangladesh Bank on March making, monitoring mechanism and full disclosure to
23,1995. The Bank’s 1st branch was opened by Late M. shareholders and regulatory authorities are essential
Saifur Rahman, the then Honourable Finance Minister of aspects of bank’s corporate governance and that they
the Government of the People’s Republic of Bangladesh create an intense pressure to rationalize bank’s services
as the Chief Guest at the commercial hub of the country and search for new competitive advantages. We work
at 1, Dilkusha Commercial Area, Dhaka on May 25, 1995. ceaselessly within these parameters.
In its arduous journey since, Southeast Bank has succeeded A team of efficient professionals manages the Bank. They
in realizing the dreams of those who established it. Today create and generate an environment of trust and discipline
it is one of the country’s leading banks in the private sector that encourages everybody in the Bank to work together
contributing significantly to the national economy. The for achieving the objectices of the Bank. The culture of
Authorized Capital of the Bank today is BDT 15,000 million. maintaining congenial work-environment in the Bank has
Its Paid-Up-Capital and Reserve reached BDT 34,056.28 further enabled the staff to benchmark themselves better
million as on December 31, 2016. The Bank had 2,616 Staff against management expectations. A commitment to
of whom 229 were Executives, 1,860 were Officers and 527 quality and excellence in service is the hallmark of their
were other Staff as on December 31, 2016. identity.
The Southeast Bank was established by leading business Southeast Bank has become a synonym of quality banking
personalities and eminent industrialists of the country services and products. It has a diverse array of products
with stakes in various segments of the national economy. and services tailored carefully to cater to the needs of
They established the Bank with a vision to bring efficient all segments of customers. Our operational strategies
and professional banking service to the people and the are structured to address the special and often complex
business community of Bangladesh to help the national needs of the customers. In the growth graph, the Bank has
economy grow. The incumbent Chairman of the Bank is Mr. generated profit of BDT 2,435.07 million after provision
Alamgir Kabir, FCA, a professional Chartered Accountant. and income tax in the year 2016. The curve keeps soaring
The Bank’s Managing Director (Current Charge) is Mr. upward everyday making it one of the leading and most
M. Kamal Hossain, a creative, experienced and eminent successful banking institutions in Bangladesh with a total
banker of the country with 34 years of experience in asset base of BDT 291,798.01 million as on December 31,
banking to his credit. 2016.
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 9,169.50 million
Registered Office : Eunoos Trade Centre
52-53, Dilkusha C/A (Level 2,3,4,6 & 16), Dhaka-1000, Bangladesh
Phone:+88 02 9571115, 9576415, 9555466 & 9578324
Fax: +88 02 9550093, 9550094 & 9550086
SWIFT: SEBDBDDHXXX, E-mail: info@southeastbank.com.bd
Website: www.southeastbank.com.bd
Tax Payer Identification No. : 555495486932
VAT Registration No. : 19011025625
Chairman : Alamgir Kabir, FCA
Managing Director (Current Charge) : M. Kamal Hossain
Chief Risk Officer : S.M. Mainuddin Chowdhury
Company Secretary & CAMLCO : Muhammad Shahjahan
Chief Financial Officer : Mohammad Aminul Haque, FCA, ACMA (CIMA), CGMA
Auditors : Rahman Rahman Huq, 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 : 2,616
No. of Branches : 128 (one hundred twenty eight)
No. of Islamic Banking Branches : 05 (five)
No. of Ladies Branches : 02 (two)
No. of Off-Shore Banking Units : 02 (two)
No. of Foreign Correspondents : 807 (eight hundred seven)
Number of Outstanding Shares : 916,950,176
Listing Status (Shares) : Dhaka Stock Exchange (DSE)
Symbol: SOUTHEASTB, Listing Date: April 10, 2000
Chittagong Stock Exchange (CSE)
Symbol: SOUTHEASTB, Listing Date: April 24, 2000
Market Price Information DSE: BDT 18.70, Category A
(as on 31.12.2016) CSE: BDT 18.80, Category A
Investors’ Enquiry : Share Division
Eunoos Trade Centre
52-53, Dilkusha C/A (Level-2), Dhaka-1000
Phone:+88 02 9567271, Fax: +88 02 9567273
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 Ltd.
Corporate Philosophy and

Business Model
Our corporate philosophy centers around our corporate Control Mechanism
missions, business domain and management goals.
We devote our talent and technology to the creation of Our control mechanism is practiced at all levels. We
value for our stakeholders. Everyday our people bring strive to control the behavior of the employees. Our
this philosophy to life and to their work. Our philosophy control mechanism is closely linked to efficiency, quality,
cannot be bound by a few words or issues. Yet we narrate innovation and responsiveness to customers.
the following:
Quality and Productivity
Customers
Our philosophy is geared towards boosting productivity
Our company philosophy is simple. It is customer-friendly and maintaining a reliable high quality service standard.
and fully responsive to customer needs and expectations. In the process of delivery of service, co-ordination is the
We carry out required research, analysis and survey to find essence of our business. Our philosophy is to achieve our
out what the customers expect. We leverage technology goals through a combination of budgetary control, pay for
and expertise to provide best services and convenience performance, incentive system, unique corporate culture
to the customers. We spend money on things that matter that continuously stresses key values.
to them and add value to the Bank in terms of image and
profit. That is why our customer-base has been steadily Building Future
expanding over the years.
Our philosophy is to make decisions today to improve
Human Resource performance tomorrow. We know a company which is
successful has to continue to be successful. We do not fear
Our people are smart, professional, well-qualified, our future, we shape it by our corporate conduct.
energetic and sincere. They are passionate about what
they do. Since they enjoy their work, it becomes easy for
them to work hard. They do not follow any set model,
rather they create models. They completely own what
they plan and do.
Communication
Our philosophy is to reduce lines and layers of

communication. We believe in free flow of ideas within the
Management Team. The Senior Management Team is also
open to ideas suggested by the lower level executives and
officers. At the same time, our decision making process is
short but quick.
Business Model Canvas of
SEBL at a glance
Southeast Bank Limited
Key Partners Key Activities Value Proposition
Customers Deposit Complete Solution of

Shareholders Lending Business Needs
Employees International Trade One Stop Service for
Regulators Remittance Personal Banking
Strategic Partners Treasury Solutions Innovative Tailor-made Products
Islamic Banking Timely, Cost-effective and
Off-shore Banking Superior Services
Geographically
Well-spread Availability
Key Resources
Highly Professional and

Experienced Board
Nationwide Network
Worldwide Correspondent
Cost Structure
Network
Highly Skilled Staff
Interest Expense Revenue Streams
Operating Expense
Dedicated Service Attitude
Capital Expenditure Interest Income
Wide Range of Products
Strong IT platform Investment Income
Strong Capital Base Fees, Commission, etc.
Other Operating Income
Customer Segments Delivery Channels Customer Care
Corporate Clients Branches KYC – Know Your Customer

Small and Medium Enterprises ATMs Personal Visit
Non-Banking Financial Internet Banking Phone Call/ Email/ SMS
Institutions Mobile Banking Automated Services
Banks Call Center Special Campaign
Individuals/ Retail Clients Subsidiary Companies In-depth Analysis
Institutional Clients Individual Solution
Govt. and Non-Govt. Continuous Review
Organizations Research and Development
Receiving Feedback
22 Years of
Glorious
Journey
2004
2002 Registered as Depository
Participant of CDBL
Formation of SEBL 17.02.2004
Foundation
1st to Demat Shares in
2000 12.03.2002
CDS of CDBL in Banking
Sector 16.05.2004
Listing with Dhaka Became a member

Stock Exchange of Trade Finance
Limited
1995 12.04.2000
Program (TFP) of Asian
Development Bank
(ADB) 20.10.2004
Incorporation of SEBL Listing with
12.03.1995 Chittagong Stock
Exchange Limited
Certificate of 24.04.2000
Commencement of
Business
12.03.1995
License Issued by
Bangladesh Bank
23.03.1995
Formal Inauguration
25.05.1995
Inauguration of 1st
Branch
25.05.1995 1st Rights Share
Issue
Subscription Opened Launching of

15.02.2003 Credit Card
01.01.2005
Subscription Closed 2nd Rights
15.03.2003 Share
Initial Public Launching of Commencement
2005 Issue
Offer (IPO) ATM of Islamic Banking
01.09.2001 Subscription
business from
Subscription Opened
Chhagalnaiya Islamic
Opened 15.10.2006
Banking Branch, Feni
25.11.1999 28.07.2003
Subscription
Subscription
Closed 2001 License Issued from
Bangladesh Bank as a
Closed
31.10.2006
05.12.1999 Primary Dealer
28.10.2003
1999 2003 2006

2014
Issuance of Subordinated Bond for BDT
2013 3,000.00 million. 11.11.2014
2011 Established Central Introduction of Green Award
Payment Centre (CPC) 15.11.2014
at Head Office for
Introduction of Incorporation of Southeast Exchange
International Trade
Internet Banking Company (South Africa) Pty Limited
Payments 15.01.2013
28.02.2011 15.12.2014
Incorporation of
Launching of SEBL
Southeast Financial Opening of Ladies Branches 29.12.2014
1st Mutual Fund
Services (Australia) Pty
23.05.2011
Limited 18.03.2013
Signed first Short
Formation of Southeast
Term Rollover Loan
Bank-The Financial
Agreement with
Express-Policy Research
International Finance
Institute Green Award
Corporation (IFC)
Trust 30.06.2013
28.06.2011
2009 Incorporation of
Establishment of
Southeast Bank Green
Southeast Financial
School 12.09.2013
Introduction Services (UK) Limited
of new Core 15.09.2011
Banking Software 100% Online Banking Signing of Revolving Credit
14.02.2009 17.09.2011 agreement for USD 5.00 million
with Asian Development Bank
Launching of 1st (ADB ) 31.03.2016
Off-shore Banking
Unit 30.12.2009 Launching of client acquisition
drive through ‘Nibir’ Campaign
15.05.2016
Launching of Telecash as Mobile Financial
Services Product 29.01.2015 Issuance of Subordinated Bond
for BDT 5,000.00 million
Signed Unsecured Facility Agreement 02.08.2016
with Global Climate Partnership Fund
(GCPF) 25.02.2015
Introduction of Bank’s Health
Launching of ATM Introduction of Bank’s Modern and full- Care Centre 29.09.2016
and ATM Cards fledged Training Institute 21.05.2015
with own System Introduction of Bank’s E-Library
27.03.2010 Signed funded Loan Agreement with
International Finance Corporation (IFC) 29.09.2016
05.08.2015
3rd Rights Launching of ‘Cash Express
Commissioning of ‘SWIFT Sanction Remit Card’ for beneficiary of
Share Issue Screening Solution’ 30.08.2015
Became a Foreign Wage Earner Expatriates
member of Subscription
Introduction of Central Monitory System 08.10.2016
Global Trade Opened (CMS) to monitor (24X7) all branches
Finance 07.07.2010 25.10.2015 Bank awarded 1st position
Program Introduction of Real Time Gross in “ICMAB Best Corporate
Subscription
(GTFP) of Settlement (RTGS) 29.10.2015 Award-2015” 26.10.2016
Closed
International
29.07.2010 Implementation of Credit Card Awarded ‘Tax Card and Trophy’
Finance
Management Software 23.11.2015 as 6th highest Tax Payers of the
Corporation Incorporation of
(IFC) Partnership with MasterCard Bangladesh Country in the Banking Sector
Southeast Bank
23.04.2007 and launched the complete range of 24.11.2016
Capital Services Credit Cards (World, Platinum, Titanium
Limited and Gold) and Prepaid Card 15.12.2015 Signed of agreement with
23.09.2010
2007 Introduction of Bank’s Call Centre 24X7 Bangladesh Bank for ‘Green
16.12.2015 Transformation Fund’ 01.12.2016
2010 Introduction of Chip-based

Credit Card 31.12.2015
2016
2015
Awards and Recognitions
Southeast Bank Limited has been awarded the First Position and indicators, sufficient disclosures for all stockholders
as the best Corporate in the Banking Sector (Private and its commitment to quality Corporate Governance,
Bank-Traditional Operation) by “ICMAB Best Corporate and compliance with legal and regulatory requirements.
Award-2015”. The Institute of Cost and Management Former Managing Director of Southeast Bank Limited
Accountants of Bangladesh (ICMAB) exhaustively received The Award from Abul Maal Abdul Muhith M. P.,
analyzed the Bank’s Annual Report -2015 and bestowed Hon’ble Minister, Ministry of Finance, Government of the
the prestigious award of the “First Position” for Bank’s People’s Republic of Bangladesh in a ceremony held on
outstanding performance, encouraging financial results October 26, 2016.
Muhammad Shahjahan, Additional Managing Director Government of the People’s Republic of Bangladesh.
and Company Secretary, Southeast Bank Limited received Southeast Bank has been given the country’s 6th highest
Tax Card and Crest from Md. Nojibur Rahman, Senior Tax Payers Award in the Banking Institutions Category for
Secretary, Internal Resources Division (IRD) and Chairman the assessment year 2015-2016.
National Board of Revenue (NBR), Ministry of Finance,


Corporate
Organogram
Board of Directors
Risk Management Executive Board Audit

Committee Committee Committee
Managing Director Board Audit Cell
P.S. to MD’s P. S
Chairman Secretariat to MD
Additional Managing Director Additional Managing Additional Managing

(Corporate Banking) Director (Retail Banking and Director (Company Affairs
Technology Administration) and Islamic Banking)
Corporate Banking Information Board Internal Control

Division Technology Division and Compliance
Division Division
International Share
Division Retail Banking Division Human Resources
Division Division
SME and Agri. Islamic Banking
Credit Division Card Division Training
Division Institute
Treasury Back Corporate
Office Unit Alternative Marketing Division Legal Affairs and
Delivery Channel Recovery Division
Unit
Financial Control Research and
and Accounts Development Unit
Division Management
Information
System Unit Central
Remittance Compliance Unit
Division
Treasury
Division
Logistic and Deputy Managing
General Services Director
Division Risk Management
Division Credit Risk
Management
Division
Branches and
General Banking
Division
Estate
Department
26
Main Operations Subsidiaries CSR Wing
Southeast Bank Southeast Southeast Southeast

Conventional Islamic Off-Shore Exchange Southeast Bank
Capital Services Financial Services Financial Services
Banking Banking Banking Units Company (South Foundation
Southeast Bank Limited I Annual Report 2016
Ltd. (UK) Ltd. (Australia) Pty Ltd. Africa) Pty Ltd.
Southeast Bank Ltd., a Besides conventional To cater to the To carry on Merchant To collect remittance To collect remittance To collect remittance To carry out
2nd generation bank Banking, SEBL has 05 demand for off-shore Banking Operations from Bangladeshi from Bangladeshi from Bangladeshi Corporate Social
was incorporated as a (five) Islamic banking banking services, in a structured way, expatriates in United expatriates in Australia expatriates of Responsibility (CSR)
Public Limited Company Branches based Southeast Bank the Bank established Kingdom for their for their beneficiaries South Africa for related activities in
on March 12, 1995. on Islamic Shariah established two (02) ‘Southeast Bank beneficiaries in in Bangladesh their beneficiaries an organized and
After receiving Banking where Separate Off-shore Banking Capital Services Bangladesh through through proper in Bangladesh sustainable manner,
License, its 1st branch Accounting system Units (OBUs), one in Limited’ as a proper Banking Banking Channel, through proper ‘Southeast Bank
was opened on May is being maintained. DEPZ and the other subsidiary company Channel, the Bank the Bank established Banking Channel Foundation’ was
25, 1995. Presently the As a part of strategic is CEPZ. SEBL OBUs in 2010. established ‘Southeast ‘Southeast Financial the Bank established established by the
Bank has 128 Branches
& 117 ATMs across the business plan, Islamic provide a continuum Financial Services Services (Australia) ‘Southeast Exchange Bank in-2002.
country. Banking Service Desk of financial services (UK) Limited’ as a Pty Limited’ as a Company (South It also runs an English
Date of Incorporation:
A number of attractive (IBSD) has already such as FC Account subsidiary company subsidiary company Africa)Pty Limited’ as Medium school
September 23,2010
Deposits and Loan been expanded to for Non-residents, in 2011. in 2013. a subsidiary company named Southeast
Paid up Capital:
products are available every conventional Usance Payable in 2014. Bank Green School at
BDT.5,500 million
in its product basket. Branch. At Sight (UPAS) Date of Dhaka.
Ownership Interest in Date of Incorporation:
SEBL has launched Retail Documentary Credit, Incorporation:
Capital: February 22, 2011 Date of Incorporation:
Group Corporate Structure
Banking, Debit Cards, Time/ Term Loan in March 18,2013

Asset Size: BDT 5,489.93 million Paid up Capital: December 15,2014 Total CSR related
Credit Cards, Mobile Foreign Currency, Paid up Capital:
BDT 20,606.07 million In Percentage: 99.82% GBP 300,000 Paid up Capital: Expenditure under
Banking (Telecash), Full fledged export-
Deposits: Asset Size: BDT Ownership Interest in AUD 312,082.90 RAND 6,632,179 SEB Foundation in
Ladies Branches and import services etc.
24/7 Call Centre to BDT 16,740.57 million 5,801.61 million Capital: Ownership Interest Ownership Interest in 2016 :
from 2009. in Capital:
cater to the needs of all Investment: BDT 38.49 million Capital: BDT 135.85 million
segments of customers. BDT 9,291.20 million In Percentage: 100% BDT 25.06 million BDT 50.10 million
Operating Profit: Asset Size: Asset Size: In Percentage: 100% In Percentage: 100%
BDT 735.84 million BDT 6,374.98 million GBP 371,325 Asset Size: Asset Size:
Asset Size: Loans & Advances: AUD 52,303.19 RAND 13,020,605
BDT 265,011.95 million BDT 6,327.28 million
Deposits: Operating Profit:
BDT 213,771.32 million BDT 107.79 million
Loans & Advances:
BDT 173,746.47 million
Operating Profit:
BDT 7,654.18 million
BDT in million
PARTICULARS 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
Authorized Capital 15,000.00 15,000.00 15,000.00 10,000.00 10,000.00 10,000.00 10,000.00 10,000.00 3,500.00 3,500.00
Paid up Capital 9,169.50 9,169.50 9,169.50 8,732.86 8,732.86 8,317.01 6,930.84 3,422.64 2,852.20 2,281.76
Reserve Fund/ Others 24,886.78 19,340.03 18,292.59 13,074.71 10,864.68 10,683.05 10,265.96 6,504.52 4,804.81 4,186.60
Total Capital (Tier-I+Tier-II) 34,056.28 28,509.53 27,462.09 21,807.57 19,597.54 19,000.06 17,196.80 9,927.16 7,657.01 6,468.36
Deposit 229,973.43 210,431.09 189,472.54 177,519.46 152,901.24 127,178.22 107,253.19 96,669.05 68,714.67 55,474.05
Advance 191,865.59 168,878.46 147,070.81 134,863.82 126,968.97 107,288.56 93,981.20 77,497.57 60,281.26 48,164.60
Investment 61,731.63 58,829.27 56,378.59 57,589.06 39,011.28 29,846.60 18,869.07 21,350.23 12,299.61 8,462.86
Import Business 171,531.73 151,812.58 155,691.00 131,644.82 111,537.50 99,509.01 103,726.70 69,582.92 58,019.77 38,470.34
Export Business 146,606.09 126,423.89 112,137.60 95,220.40 84,464.20 75,982.06 58,158.06 46,724.47 42,178.60 28,771.36
Foreign Remittance 64,665.84 60,708.50 48,740.50 39,299.10 41,455.40 49,544.10 28,082.25 23,779.20 15,221.87 11,040.17
Guarantee Business including ILC 16,369.36 15,245.19 13,603.30 17,226.41 21,506.65 25,673.90 22,781.19 11,916.74 15,078.99 9,008.32
Total Income 25,617.57 26,260.72 27,667.10 26,918.30 23,134.18 19,931.91 16,100.81 13,415.21 10,250.13 8,670.47
Total Expenditure 17,114.35 18,226.45 19,377.34 20,218.11 17,638.99 13,846.24 9,331.55 8,800.55 7,237.55 5,754.27
Operating Profit 8,503.22 8,034.27 8,289.76 6,700.20 5,495.19 6,085.67 6,769.26 4,614.66 3,012.58 2,916.20
Net Profit after Tax and Provision 2,435.07 3,069.42 3,836.94 3,378.82 1,648.72 1,912.19 2,763.93 1,870.19 887.24 1,222.97
Fixed Assets 8,947.16 7,885.23 7,913.00 7,795.65 7,677.51 7,373.11 4,463.64 4,323.59 2,685.56 1,708.11
Total Assets 291,798.01 260,718.03 236,608.40 220,930.85 191,276.30 158,078.59 131,784.27 112,676.98 81,181.53 64,370.69
Earning per Share (BDT) 2.66 3.35 4.18 3.68 1.89 2.19 3.77 3.24 3.11 4.28
Dividend Cash (%) 20% 15% 15% 16% 15% 15% 10% - 15% 15%
Bonus Shares - - 5% (20:1) - 5% (20:1) 20% (5:1) 35% (20:7) 20% (5:1) 25% (4:1)
Return on Equity (ROE) 9.06% 11.86% 16.51% 16.20% 8.42% 10.47% 19.41% 16.51% 12.06% 19.90%
Return on Asset (ROA) 0.88% 1.23% 1.67% 1.64% 0.95% 1.32% 2.26% 1.66% 1.09% 1.90%
Non-Performaning Loan 4.89% 4.25% 3.64% 3.94% 4.47% 3.51% 4.26% 3.73% 4.12% 3.77%
Capital Adequacy Ratio 12.15% 11.52% 12.41% 10.90% 10.87% 11.46% 11.25% 11.72% 11.12% 13.00%
Number of Correspondent Banks 248 220 211 211 183 161 152 146 145 140
Last 10 Years’ Financial Indicators
Number of Foreign Correspondents 807 811 791 778 691 654 645 589 587 598
Number of Shareholders 39,009 46,285 58,169 65,413 64,060 68,039 66,898 22,152 12,536 9,636
Number of Employees - Banking 2,089 1889 1780 1704 1655 1526 1373 1254 1080 964
- Non Banking 527 487 441 414 355 322 240 148 151 152
Number of Branches 128 122 113 103 94 84 76 56 46 38
27
SEBL at a glance
Forward Looking Ideology
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-2016 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.
Board of Directors
SEBL at a glance
Independent
Chairman Directors
Alamgir Kabir, FCA A.H.M. Moazzem Hossain
Dr. Quazi Mesbahuddin Ahmed
Directors
M. A. Kashem
Azim Uddin Ahmed
Duluma Ahmed
Jusna Ara Kashem
Md. Akikur Rahman
Rehana Rahman
Sirat Monira
Advisor
Zakir Ahmed Khan
Managing Director (CC)

M. Kamal Hossain
Board of
Directors
From Left Standing
Zakir Ahmed Khan Advisor

From Left Seating
Dr. Quazi Mesbahuddin Ahmed Independent Director
A.H.M. Moazzem Hossain Independent Director Sirat Monira Director
M. A. Kashem Director Jusna Ara Kashem Director
From Left Standing
Alamgir Kabir, FCA Chairman

From Left Seating
Azim Uddin Ahmed Director
Md. Akikur Rahman Director Duluma Ahmed Director
M. Kamal Hossain Managing Director (CC) Rehana Rahman Director
Committees of the
Board of Directors
Executive Committee
Chairman
Alamgir Kabir, FCA
Members
M. A. Kashem
Azim Uddin Ahmed
M. Kamal Hossain
Audit Committee
Chairman
A.H.M. Moazzem Hossain
Members
Duluma Ahmed
Jusna Ara Kashem
Rehana Rahman
Risk Management Committee

hjhjhjh
Chairman
Alamgir Kabir, FCA
Members
M. A. Kashem
Azim Uddin Ahmed
Shariah Supervisory Committee
Chairman
Professor Moulana Mohammad Salah-Uddin (not in the picture)
Members
M. Kamaluddin Chowdhury
Moulana Mohammad Kafiluddin Sarker
Alamgir Kabir, FCA
M. A. Kashem
Azim Uddin Ahmed
M. Kamal Hossain
Directors’ Profiles and
their representation
on Board of other
Companies
Mr. Alamgir Kabir, FCA was born on December 28, 1947. He did B.Com
(Hons.) from the University of Dhaka and M.Com from Punjab University.
He is a professional Chartered Accountant. He has wide experience and
profound knowledge in Auditing, Accounting, Banking, Insurance and
Financial Institutions both at home and abroad.
Mr. Kabir has been Chairman of the Board of Directors of the Bank since
September 29, 2004. He is also the Chairman of the Executive Committee
of the Board of Directors and the Risk Management Committee of the
Board of Directors. He is the Chairman of its all subsidiary companies. He
is also the Director of Asia Insurance Limited and Independent Director of
National Life Insurance Co. Limited.
Mr. Kabir started his career in the year 1969 with Rahman Rahman Huq
and Co., Chartered Accountants, Member Firm of KPMG, and continued
with EWP Associates, Management Consultants, a sister concern of
Rahman Rahman Huq and Co. and stayed there until 1979. In 1972, he was
in-charge of Audit Team for the first statutory Audit of Accounts of
Bangladesh Bank. He moved to Riyadh, Saudi Arabia in 1979 with
Alamgir Kabir, FCA assignment in Saudi Accounting Bureau, Chartered Accountants, member
Chairman firms of Coopers & Lybrand, Moores Rowland International and Inbucon
International Ltd., as Management Consultant from 1979 to 1993. He
returned to Bangladesh in 1993 with assignment in Bangladesh Securities
and Exchange Commission as Member from 1993 to 1996 and also
acted as the acting Chairman for a period. During his stay with BSEC,
he substantially contributed to the development of the Capital Market
of Bangladesh. From 1996 onward, he has been involved in different
capacities in formation and development of Bank, Non-Banking Financial
Institution, Insurance and Capital Market related Institutions and others.
From 1999 to 2003, Mr. Kabir was the founder Advisor of Export Import
Bank of Bangladesh Limited of which his brother Late Shahjahan Kabir was
the Founder Chairman. Both the brothers were involved in the formation
of EXIM Bank and contributed to its rapid growth.
Mr. Kabir belongs to a family whose members are involved with Banks,
Insurances and Financial Institutions. He is member of a number of
associations and also associated with many social organizations where he
is working very silently for the welfare of the people. Mr. Kabir is a widely
traveled person across the globe.
SEBL at a glance
Mr. M.A. Kashem was the Founder Chairman of Southeast Bank Limited.
Currently, he is a Sponsor Director of the Bank. He is also a member of the
Executive Committee and the Risk Management Committee of the Board
of Directors of the Bank. He is a member of North South University Trustee
Board.
Mr. Kashem is the former President of the Federation of Bangladesh

Chamber of Commerce and Industry (FBCCI), the apex body of all
the business communities of Bangladesh. He was the Chairman of
Arbitration Tribunal of FBCCI. He is the past Chairman of the Association
of Private Universities of Bangladesh (APUB) which represented all Private
Universities of the country. Mr. Kashem was a member of Board of Trustees
of Hamdard Laboratories (WAQF) Bangladesh, the leading producer of
herbal medicines in the sub-continent for over 17 (Seventeen) years. He
is the President of SAHIC Trust (Society for Assistance to Hearing Impaired
Children), the only voluntary organization rendering health care assistance
of the ear, nose and throat services to destitute and poor patients.
M. A. Kashem Mr. Kashem is an eminent industrialist, renowned patron of education,

Director distinguished philanthropist and an active social worker. He is the winner
of “President Export Trophy Award” for the year 1982-83 & 1983-84 for
excellent export performance. Mr. Kashem also got “C.R. Das Gold” Medal
for excellent contribution in the Industrial sector in the year 1995. He was
awarded the “Highest Tax Prayer-2011” by National Board of Revenue (NBR)
for Dhaka City Corporation.
Mr. Kashem was the leader of 20-member FBCCI Trade delegation to Far
Eastern Countries in the year 1986. He was also the leader of 5 member
Govt. delegations to U.K., U.S.A. and Canada sponsored by UNDP in 1987
and leader of 12 member EPB Govt. of Bangladesh delegations to EEC
countries in 1985. As an industrialist, he travelled almost all major cities of
the world many times on his own business and also led trade delegations.
As a philanthropist, Mr. Kashem set up a number of Schools, Madrashas,

Moshjid, Club etc. and erected free dwelling houses for the poor and
destitute people of his locality. He has established a Trust named M.
Kashem Trust to foster education to the primary and mid-level students of
schools in his locality. The Trust awarded stipends and Scholarships to the
meritorious students during the last couple of years. Moreover, a General
Hospital (Non-Profit) of 50 Beds in the name of “Tareque Memorial Hospital”
is at present in operation at his home district. Mr. Kashem is a member of
the Rotary Club of Dhaka West, Kurmitola Golf Club, Gulshan Club Limited,
Bangladesh Diabetic Association, Dhaka, Bangladesh Red Crescent Society,
National Shooting Club and Shishu Hospital, Chittagong.
Mr. Azim Uddin Ahmed was born on June 30, 1940. He is a graduate
from the University of Dhaka. As a former Chairman of Southeast Bank
Limited, he pushed the Bank forward. Currently, he is a Sponsor Director
of the Bank. He is also a member of the Executive Committee and the Risk
Management Committee of the Board of Directors of the Bank.
Mr. Azim Uddin Ahmed is a well-known business personality of the country.

He is the Chairman of Mutual Food Products Limited, Mutual Milk Products
Limited and Mutual Trading Co. Ltd. He is also the partner of Mutual Agro-
complex, Mutual Departmental Store and Mutual Distribution and Silonia
Agencies. Mr. Azim is the current chairman of the Board of Trustees of
North South University and founder life member of North South University
Foundation.
Mr. Azim is associated with a number of trade bodies and associations

devoted to social work. He is the past President of Rotary Club of Dhaka
North and Area Governor of Rotary District. He was the past President of
Gulshan Club Ltd. He is the President of Baridhara Society. He served in
Azim Uddin Ahmed different capacities in Dhaka Chamber of Commerce and Industry (DCCI),
Director Federation of Bangladesh Chamber of Commerce and Industry (FBCCI)
and Bangladesh Indenting Association. He is the current President of
Bangladesh Consumer Products Manufacturers and Marketers Association.
He represented Bangladesh as a member of Trade Delegation to Europe
and many other Govt. and private trade delegations to European, American
and Asian countries.
Mr. Azim is also engaged in philanthropic activities. He is the Founder

of Azimia Islamia Senior Madrasha, Duluma Azim High School, Fatema
Farzana Kindergarten and Purba Silonia Forkania Madrasha. He is a widely
traveled person across the globe.
SEBL at a glance
Mrs. Duluma Ahmed was born on July 7, 1947. She hails from a very
respectable Muslim family. She is a Sponsor Director of the Bank and a
member of the Audit Committee of the Board of Directors of the Bank. She
is associated with business activities. She is the Director of Mutual Food
Products Limited, Mutual Milk Products Ltd., Mutual Trading Co. Ltd. She is
the partner of Mutual Distribution and Silonia Agencies.
Mrs. Duluma Ahmed is also associated with philanthropic activities. She

is the Founder of Duluma Azim High School. She is the patron of Azimia
Islamia Senior Madrasha and Fatema Farzana Kindergarten School in
Chhagalnaiya. She is a member of Gulshan Ladies Community Club
and Inner Wheel Club of Dhaka North. As a social worker, she is lavishly
contributing to the poor and the needy section of the society. She traveled
many countries of the world.
Duluma Ahmed
Director
Mrs. Jusna Ara Kashem was born on December 7, 1951. She is a leading
industrialist and business leader of the country. She is a Director of Rose
Corner (Pvt.) Limited. She hails from a very respectable Muslim family of
Rajshahi. She is a Sponsor Director of the Bank and a member of the Audit
Committee of the Board of Directors of the Bank.
Mrs. Jusna Ara Kashem is associated with many humanitarian and

philanthropic organizations and is the Vice Chairman of M. Kashem
Foundation. This Foundation set up a 50 bed Hospital namely “Tareque
Memorial Hospital” at Chhagalnaiya, Feni. Mrs. Jusna Ara Kashem is very
amiable in nature and a good social worker.
Jusna Ara Kashem

Director
SEBL at a glance
Mr. Md. Akikur Rahman was born on February 15, 1945. He is a Sponsor
Director of the Bank. He is a successful businessman. He is the Chairman of
RAR Investment Limited of Murad Vill, Nower Road, Dorking Surrey, RH43Y,
United Kingdom. He is also the Chairman of Dorking Muslim Community
Association of 11/15, Hart Road, Doring, Surrey, RH4 1JS, United Kingdom.
He is the Managing Director of RAR Holding Limited, 12-25, Prioy Prangan
Tower, 19 Kemal Ataturk Avenue, Banani, Dhaka. He is also the 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.
Md. Akikur Rahman

Director
Mrs. Rehana Rahman was born on June 06, 1948 in a respectable

Muslim family of Khulna. She is a graduate. She is a leading industrialist
and a business leader. She is the Managing Director of Bengal Trade Ways
Limited and a Director of Drift Packaging Limited. She is a member of the
Board of Trustees of North South University Foundation. Formerly, she was
the Chairman of North South University Foundation. She was appointed a
Sponsor Director of the Bank by the Board of Directors in its 443rd meeting
held on August 11, 2014. Her appointment as Director was approved by
Bangladesh Bank by Letter dated August 31, 2014. She is a Member of
the Audit Committee of the Board of Directors of the Bank. Mrs. Rehana
Rahman is a widely traveled person and a social worker.
Rehana Rahman
Director
SEBL at a glance
Mrs. 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
was also a member of Audit Committee of Board of Directors of the Bank.
She is a member of Dhaka Ladies Club. She is a philanthropist. She widely
traveled many countries across the globe.
Sirat Monira
Director
Mr. A.H.M. Moazzem Hossain was born on January 01, 1948. He did
B.A(Hons) and MA in Economics from the University of Dhaka. He was
appointed Independent Director of the Bank on 24 December, 2012. He
took over as the Chairman of the Audit Committee of the Board of Directors
of the Bank. He is also a member of the Risk Management Committee of
the Board of Directors of the Bank. Mr. Moazzem Hossain started his career
as a banker with Habib Bank Limited, Pakistan in 1969. He also worked
as Economic Investigator, Ministry of Finance, Government of Pakistan in
1970. Later, he joined the Bangladesh Observer, a leading national daily in
1971 and continued there until 1987.
He also worked in the New Nation, the United News of Bangladesh (UNB)
as Executive Editor, The Daily Star as Economic Editor and in The Telegraph
as Deputy Editor. Currently, he is the Editor of The Financial Express. He was
also associated with Press Institute of Bangladesh and Bangladesh Sangbad
Sangstha. He was a member of the board of directors of Janata Bank, a
nationalized commercial bank of the country for five years. He attended a
number of seminars and workshops abroad mostly at the invitation of the
A. H. M. Moazzem Hossain host countries. He traveled many countries across the globe.
Director
SEBL at a glance
Dr. Quazi Mesbahuddin Ahmed was born on January 18, 1948. He holds
BA (Hons.) and MA degrees in Economics from the University of Dhaka.
He obtained MS Degree in Economics from the James Cook University of
North Queensland, Australia. He did Masters as well as a PhD degree in
Economics from the University of Illinois at Urbana-Champaign, USA. He
was appointed as an Independent Director of the Bank in the 21st Annual
General Meeting held on April 11, 2016. He is also a member of the Audit
Committee of the Board of Directors of the Bank. Dr. Ahmed started his
career at the Research Department of the Central Bank of Erstwhile Pakistan
in February, 1969 and moved to the Planning Department of erstwhile East
Pakistan in 1971.
He was the Economic Minister at the Bangladesh Embassy in Washington

DC for 6 (six) years during 1997-2002. Dr. Ahmed was also the Additional
Secretary in Economics Relation Division (ERD) of Ministry of Finance in
2003. He worked as Managing Director of Palli Karma Sahayak Foundation
(PKSF) for over Five years from January 2008 to March 2013. Dr. Ahmed
was a visiting fellow at the University of Western Australia during 1994.
Dr. Quazi Mesbahuddin Ahmed He was an adjunct faculty at the economics department of East West
Director University, Dhaka and a fellow of Palli Karma Sahayak Foundation. Dr. Quazi
Mesbahuddin is a widely traveled person across the globe. He represented
Bangladesh Government in many international forums. He attended a
number of seminars, workshops and meetings relating to aid consortium.
He has publications on development planning, macroeconomic
performance, use of foreign aid, budgetary accounts, national income
accounts etc.
Mr. M. Kamal Hossain was born on January 01, 1958. Mr. Hossain had an
exemplary academic background. He did his MSS with distinction in Public
Administration from the University of Chittagong in 1982. He started
his banking career as a Probationary Officer with National Bank Limited
in 1983. He spent 18 (eighteen) years in National Bank Limited holding
important positions in different branches and Head Office.
Mr. M. Kamal Hossain has been serving Southeast Bank Limited (SEBL) as
Managing Director (Current Charge) since the 29th March 2017. He joined
SEBL in July 2003 as Vice President and prior to his current assignment,
he served as Additional Managing Director of the Bank. During his years
of journey with SEBL, he held the position of Head of Branch (HoB) of a
number of Bank’s leading branches including Principal Branch.
During his 34 years long banking journey, Mr. Hossain gained extensive
banking experience and developed wide range of expertise in almost all
areas of commercial banking comprising Import, Export, Credit, General
Banking, Human Resources, Accounts etc. Under his visionary leadership,
M. Kamal Hossain SEBL is expected to evolve as a leading commercial bank of Bangladesh
Managing Director with exemplary business and financial outcomes.
(Current Charge)
Mr. Hossain is an alumnus of the Public Administration Department of the
University of Chittagong. He attended numerous seminars, workshops and
training programs at home and abroad. He extensively visited the United
States of America (USA), United Kingdom (UK), Switzerland, Germany,
France, Spain, Australia, Canada, Myanmar, Turkey, Singapore, Malaysia,
Thailand, China, Saudi Arabia, Oman, Qatar, India, etc. Mr. Hossain is married
to Ms. Manoara Begum and blessed with two sons and one daughter.
SEBL at a glance
Mr. Zakir Ahmed Khan, Former Finance Secretary to the Government of
Bangladesh joined Southeast Bank as Advisor on 26 September, 2010. He
carries with him vast experience and expertise gathered from home and
abroad.
Mr. Khan did BA (Hons) and Masters in Economics from the University of
Dhaka in 1968. He had graduate study in Development Economics and
Development Administration as a Hubert Humphrey North-South Fellow
at the Colorado State University, USA. He also did Master of Business
Administration from Vrijie Universiteit, Brussels, Belgium.
Before joining Government Service in 1970, he briefly worked as a Research

Associate in the Bureau of Economic Research and Institute of Education
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.
During his 44 years of public service Mr. Khan held various senior level
Zakir Ahmed Khan positions in the Ministries of Finance, Commerce, Establishment, Energy,
Advisor Civil Aviation and Tourism, Cabinet Division and Bangladesh Audit and
Accounts Department. He served as Finance Secretary and Secretary,
Internal Resources Division and Chairman, National Board of Revenue for
five years. He also briefly worked for a number of UN Agencies. Prior to his
retirement in early 2009, he served as Alternate Executive Director of the
World Bank for three and a half years.
He contributed a number of articles on public policy and public sector

financial management to a number of national and international journals.
He also made several key note presentations on public sector reforms and
financial management in seminars and workshops at home and abroad.
Directors’ Responsibility
Statement
Directors’ Responsibility Statement is outlined below in
compliance with Bangladesh Bank BRPD Circular No. 11 dated
27 October 2013:
Work-Planning and Strategic Management Internal Control Management
The Board determines Bank’s objectives and goals and The Board remains vigilant on the internal control system
chalks out strategies and work-plans on annual basis. It of the Bank in order to attain and maintain satisfactory
specially engages itself in the affairs of making strategies qualitative standard of its loan/investment portfolio. The
consistent with the determined objectives and goals and in Board establishes internal control system in such a way that
the issues relating to structural change and reformation for the internal audit process can be conducted independently
enhancement of institutional efficiency and other relevant by the concerned department. It reviews the reports
policy matters. It analyzes and monitors the implementation submitted by its Committees especially regarding compliance
of its decision on quarterly basis. with recommendations made in Internal and External Audit
Reports and the Bangladesh Bank Inspection Reports as well
The Board gives its analytical review as incorporated in the as reports on management of risks.
Annual Report regarding the success or failure in achieving
the business and other targets as set out in its annual work- Human Resources Management and Development
plan and apprises the shareholders of its opinions and
recommendations on future plans and strategies. It sets Policies relating to recruitment, promotion, transfer,
the Key Performance Indicators (KPIs) for the CEO & Officers disciplinary action and punitive measures, human resource
belonging to two tiers below the CEO and evaluates them development etc. and service rules are framed with the
from time to time. approval of the Board. The Chairman or any Director in no way
involves himself or interferes into or exercises influence over
Credit and Risk Management any administrative affairs including recruitment, promotion,
transfer and disciplinary measures as conducted under the set
The policies, strategies, procedures etc. in respect of appraisal service rules. No member of the Board of Directors is included
of loan/investment proposal, sanction, disbursement, in the selection committee for recruitment and promotion
recovery, rescheduling and write-off of loans are made with to different levels. Recruitment, promotion, transfer and
the Board’s approval under the purview of the existing laws, punishment of the officers immediate two tiers below the
rules and regulations. The Board specifically delegates the CEO, however, rest upon the Board. Such recruitment and
power of sanction of loan/investment and such delegations promotion are done complying with the service rules i.e.,
are suitably made amongst the CEO and his subordinate policies for recruitment and promotion.
executives as far as desirable for efficient business operations.
No Director interferes, directly or indirectly, in the process of The Board focuses its special attention on the development
loan approval. of skills of Bank’s staff in different fields of its business activities
including prudent appraisal of loan/investment proposals, the
The Board frames policies for Risk Management and adoption of modern electronic and information technologies
ensures their implementation. It monitors compliance at and the introduction of effective Management Information
quarterly intervals through reviews of the reports of the Risk System (MIS). The Board gets these programs incorporated in
Management Team. The Board monitors the compliance its annual work plan.
of the guidelines of Bangladesh Bank regarding Key Risk
Management.
SEBL at a glance
The Board imposes Code of Ethics for every tier of employees The Board reviews the work of the Asset-Liability Committee
and they follow it properly. It promotes healthy code of (ALCO) on regular basis. The Committee is working according
conduct in the Bank for developing a compliant banking to Bangladesh Bank guidelines.
operation.
Appointment of Chief Executive Officer (CEO)
Financial Management
One of the major responsibilities of the Board of Directors is
The annual budget and the statutory financial statements to appoint an honest, efficient, experienced and suitable CEO
are finalized with the approval of the Board. It reviews and or Managing Director. The appointment of the CEO is made
monitors monthly position of Bank’s income, expenditure, with the approval of the Bangladesh Bank.
liquidity, non-performing asset, capital base and capital
adequacy, maintenance of loan loss provision and steps taken Other Responsibilities of the Board
for recovery of defaulted loans including legal measures.
The Board follows and complies with all the responsibilities
The Board frames the policies and procedures for Bank’s assigned to it by Bangladesh Bank from time to time.
purchase and procurement activities and accordingly
approves the delegation of power for making such On behalf of the Board of Directors,
expenditures. The maximum possible delegation of such
power of expenditures vests 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 are, however, adopted with Alamgir Kabir, FCA
the approval of the Board. Chairman
Review from
the office of
the Group
Chairman
Alamgir Kabir, FCA

Group Chairman
Bismillahir Rahmanir Rahim
Dear Shareholders,
I warmly welcome you to the 22nd Annual

General Meeting of the respected shareholders
of the Bank. I sincerely thank you for your
continued interest, support and patronage
of Southeast Bank Limited over the years.
I have minutely reviewed the operational
performance of the Bank for the year 2016 to
chart out our plans and programs for the next
year. Based on it, I am privileged to place before
you a report about the Bank for the year 2016
with an outlook for the years ahead.
01. Review of Operational Result of fund. The private sector credit growth was 15.55
percent. Inter-bank call rate hovered around 2.75 percent
Being backed by your patronage, I am pleased to announce to 3.00 percent. On the contrary, the deposit of our bank
another set of record results in 2016. The results could be grew by 9.29 percent during the year. Consequently,
achieved through our strategy of creating and developing the Bank’s Loan to Deposit Ratio stood at 83.43 percent.
leading positions in our chosen areas of operations. And Since there was less demand for new investment, the
success is not our destination, it is our journey. year 2016 ended up with a surplus investable fund for
BDT 352,990.00 million. Our Bank did not have shortfall in
Bank’s total asset increased by 11.92 percent in line with Cash Reserve Requirement in 2016. The Bank’s fund was
the Bank’s policy of maintaining comfortable liquidity. prudently managed by Bank’s Treasury Unit for maximum
Liquid assets to total assets stood at 9.30 percent at profit generation and there had not been any failure in
the end of 2016. During the year, adequate focus was complying with regulatory requirements in this respect.
aggressively put on liability management. It resulted in
significant reduction of cost of fund (COF) and it reached 04. Risk Management
7.39 percent at year end. In the deposit mix of the Bank,
the cost-free and low cost deposit reached 35.46 percent The Bank defines its overall risk strategy. We determine
from 31.86 percent in 2015. The total deposit of the Bank the risk exposure on the basis of available capital
including Islamic Banking Deposits increased by 9.29 cushion. Our risk management activities require that the
percent over that of last year. It led to a healthy Loan to risk is identified, measured, aggregated and managed.
Deposit Ratio of 83.43 percent. The net interest margin Accordingly, our risk policies aim to analyze and monitor
of the Bank reached to 3.77 percent at the end of 2016. the risk within appropriate limits. We allocate sufficient
The Bank was able to increase Net Interest Income to BDT resource to monitor and control core risk areas.
4,207.21 million from BDT 3138.46 million in 2015. Fee and
other income during the year 2016 had a good growth of 05. Initiative to upgrade Business Continuity
7.81 percent over those of 2015. The good contribution System
of Fee and other income to Bank’s total income is a
clear testimony of Bank’s strength. The Bank’s operating Southeast Bank has a Business Continuity System and
income increased to BDT 12,852.45 million in 2016 from Disaster Recovery Plan in place to deal with a number of
BDT11,604.39 million in 2015. crises. These include natural disaster, such as, earthquake
and floods, system failures due to Cyber-Terror incidents
02. Evaluation of the Performance of the Bank and other crises. The Bank is also working to increase
Management its capability to cope with crises through training and
educating employees. To have our customers use our
The management of the Bank was proactive and prescient services with a sense of safety, we are continuing to
in 2016 to handle Bank’s day-to-day affairs effectively in enhance the sophistication of our Business Continuity
an environment of acute competition amongst banks System.
and financial institutions. The demand for credit was
low in the market in the year. The average lending rate 06. Our Response to Capital to Risk-Weighted
witnessed a downward trend. Resultantly, bank’s dealing Assets Ratio (CRAR)
spread got squeezed and impacted bank’s profitability.
The efficiency of any service-oriented organization is Capital adequacy regulations are a framework aimed at
primarily determined by the quality and character of the securing the soundness of the Bank through enhancement
people working within it. The Board of Directors of the of capital. This framework has three dimensions; namely,
Bank places top-most importance to recruit, develop and minimum capital requirement, self assessment and
retain employees having required professional excellence supervisory reviews, and a market discipline enhanced
and high level of integrity. through information disclosure.
In such a situation, the whole management team
performed appreciably to produce good operating To maintain sufficient capital for the Bank in line with the
result in the year under review under the leadership of aforesaid framework, the Bank has established the basic
the Managing Director. His team members deserve your policy for its capital management. The policy sets forth
blessings and support for continuity of their best effort to (1) taking initiatives for maintaining sufficient level of
bring in more qualitative changes in the Bank. capital, (2) taking proper measures for capital assessment,
and (3) taking steps for the accurate calculation of capital
03. Liquidity Management of the Bank adequacy ratio. The Bank is gearing efforts to enhance the
level of risk management of the Bank.
During the year 2016, the entire banking sector was awash
with liquidity in the wake of poor demand for borrowing
SEBL at a glance
We try to maintain a strong capital base to support the in the Bank’s relationship with its all stakeholders
on-going development of business of the Bank. We namely, shareholders, business associates, customers,
prudently maintain a nice balance between the different management, employees, government, regulatory
components of capital. Bank’s total capital reached BDT bodies and the community. It encompasses both
34,056.28 million as on 31 December, 2016. explicit and implicit contracts between the Bank and the
stakeholders for (i) distribution of responsibilities, rights
07. Our Technology Use Platform and rewards, (ii) procedures for reconciling the sometimes
conflicting interests of stakeholders in accordance with
Information Technology governance is an area that has their duties, privileges and roles, and (iii) procedure for
been effectively addressed and is being upgraded for total proper supervision, control, and information flows to
technology and control system cohesion. Most people serve a system of checks and balances. This framework is
use the surface of the technology. We take for granted periodically reviewed by the Board and necessary changes
the power and availability of unfathomable tools and and revisions are made.
technology. We look for creative ways to deeply leverage
existing infrastructure and platforms. We use common The Board of Directors exerts governance over all
technology in uncommon ways. As the Bank grows, employees including the Managing Director. It makes
we shall require to procure and put in place advanced sure that the business operations of the Bank adhere to all
versions of our selected technology to cope with the applicable rules of corporate governance and regulatory
emerging needs of the Bank and its customers. We believe requirements. This governance culture is included in its
investment in technology facilitates access to untapped own customer values, policies and laws relating to its
resources and improve competitive edge. Our people employees from the highest to the lowest level. The intent
are also continuously learning use of latest technology is to increase the accountability of the company and
technique and financial knowledge to help upgrade the avoid any deviation before they occur. We weed out and
Bank. eliminate problems and issues that bar effective practice of
corporate governance in the Bank. The Board’s supervision
08. Acclimatizing new employees results in a clear and more ethical organization and makes
the Bank appealing to the customers and investors. So,
New employees in our Bank need not spend weeks our themes of corporate governance are accountability,
and months finding their feat in the Bank. We introduce fairness, transparency, compliance, risk management, etc.
them to their work-family so that they know co-workers
and feel comfortable reaching out for resource. This 11. Bank’s Cyber Security
acclimatization contributes to their building confidence,
feeling supported, becoming productive and realizing Recently the banking industry experienced serious
their value sooner. We believe in training and equipping breaches of cyber security. Such incidents heightened
them, not just engaging them. The new entrants do not fears for more such cyber attacks. Banks in Bangladesh,
just add numbers, they add quality and value. They join to as elsewhere on the globe, are not immune from
fill skill gap in the organization and to reach new heights the criminals’ target. The attacks become easy to be
of professional excellence. perpetrated if an insider can be used to get the details
needed to prepare the attacks. In the face of such a
9. Talent Management and Team Work situation and to ward off such attacks through hacking
and tracking by use of technology, we have emphasized
Our talent management is smart. We promote individuals’ the need for keeping in place appropriate control system
brilliance to increase the value of the skills available to and risk assessment from time to time. Special monitoring
them. No one excels at everything, but everyone excels at has been put in place in the area of SWIFT messaging
something. We facilitate greater engagement and reap all system to prevent fraudulent attempts of transferring
the competitive advantages that a productive, engaged money. We have also emphasized on expert guidance to
and skillful workforce provides. Ultimately success is protect our intra-connections and effectuating payments.
reliant upon skills of multiple individuals. There is no ‘I’ in We are upgrading our ICT security and risk management
our team. Our team work divides the task and multiples policies to mitigate IT operational risks.
the success.
12. Information about Subsidiary Companies as on
10. Our Corporate Governance 31st December, 2016
Our Corporate Governance is the framework of rules Southeast Bank has the following Foundation and
and practices by which the Board of Directors of the Subsidiary Companies to carry on related activities and
Bank ensures accountability, fairness and transparency business operations at home and abroad.
Name of the Foundation Country of Bank’s Year of

Sl # Purpose
/ Subsidiary incorporation Ownership opening
To carry on charitable activities
1. Southeast Bank Foundation Bangladesh - 2002 in an organized and sustainable
manner.
Southeast Bank Capital To carry on merchant banking
2. Bangladesh 99.816909% 2010
Services Limited operations.
To collect remittance from
Southeast Financial
3. United Kingdom 100% 2011 Bangladeshi expatriates for their
Services (UK) Limited
beneficiaries in Bangladesh.
Southeast Financial To collect remittance from
4. Services (Australia) Pty Australia 100% 2013 Bangladeshi expatriates for their
Limited beneficiaries in Bangladesh.
Southeast Exchange To collect remittance from
5. Company (South Africa) South Africa 100% 2015 Bangladeshi expatriates for their
Pty Limited beneficiaries in Bangladesh.
13. Issuance of Second Subordinated Bond 2012, 2013, 2014 and 2015 consecutively. The Institute
of Cost and Management Accountants of Bangladesh
Our Policy is to move forward with initiatives to enhance awarded our Bank First Position as the Best Corporate in
the level of capital requirement of the Bank. Accordingly, the Banking Sector (Private Commercial Bank-Traditional
the Board of Directors of the Bank in its 486th meeting Operation) for the Bank’s published accounts and reports
held on April 11, 2016 approved Bank’s issuance of second for the year 2015. Recognitions encourage us to make
Subordinated Bond for BDT 5.00 billion. After regulatory further qualitive and quantitative improvement in the
clearance, we got the fund in our books of accounts on Bank.
October 27, 2016. It significantly increased Bank’s Tier-II
Capital in 2016. 17.
Integrity: a condition for our business
sustainability
The first Subordinated Bond for BDT 3.00 billion was issued
in 2014. Profit generation is an essential pre-requisite for ensuring
our business success and growth in the Bank. It is not
14. Code of Conduct for Directors sufficient per se. Profit must be generated with the
highest degree of honesty and integrity for promotion
The Board of Directors of the Bank in its 410th meeting of Bank’s reputation. We emphasize the entrepreneurial
held on December 24, 2012, among other things, ability of our employees. To do that, we do not simply
approved the Code of Conduct for the Directors of the rely on an effective governance mechanism but also on a
Bank. The Directors are sincere in abiding by the Code of set of shared values to which our colleagues can relate in
Conduct. There had not been any breach of the Code of their working life. Fairness, respect, freedom, transparency,
Conduct by any Director of the Bank. reciprocity, harmony, team spirit, courtesy, commitment,
service excellence, enthusiasm for work and business
15. Loans to Directors ethics are essential for us to transform profit into value in
a sustainable manner.
No loan excepting Credit Card limit was allowed to any
Director of the Bank in the year 2016. We provide useful behavioral framework for resolution of
dilemma that our employees individually encounter while
16. Awards and Accolades doing their everyday activities. We help them make a
responsible and consistent professional decision selflessly.
Southeast Bank greatly weighs good corporate
governance and operational excellence. These are our 18. Corporate Social Responsibility (CSR) Initiatives
fundamental requirements in our aspiration to remain a
leading banking institution in our country. We do have Every business should give something back to the
strategy, intent and ability to take the Bank forward. Our community in which it operates. As a Bank born and bred
Annual Report contains enough disclosures. We also in Bangladesh, we have also a deep commitment to the
publish financial statements complying with all applicable Country’s economic development and preservation of
Accounting Standards. In recognition, The Institute of the environment. We believe our conscious choice of
Chartered Accountants of Bangladesh (ICAB) conferred protecting the environment today will lead to a better
upon us the Certificate of Merit for our published accounts and sustainable tomorrow. Our CSR goes far beyond
and reports for a number of years including for the years charity. We help achieve lasting changes in the lives of
people. We are pledge-bound to carry out our business of Southeast Bank complies with all the provisions of law
SEBL at a glance
banking in an economically, environmentally and socially and the regulations of the regulatory bodies. We are
responsible way. We support initiatives of individuals or pledge-bound not to allow our banking channel to be
groups to protect wildlife habitat, curb effect of climate used by any criminal, terrorist, terrorist group or network
change and improve conditions of communities. Our of terrorists to carry out any subversive activities in the
CSR engagements are steadily increasing in depth and country or elsewhere on the globe. There is appropriate
diversity both in expenditures, financial inclusion drives, structure in place at Bank’s Head Office and the branches
greening the internal practices and processes, and in to deal with the menace. The Bank has also developed and
lending to environmentally benign projects. We created implemented AML and CFT compliance policy. Under the
Southeast Bank Foundation to carry out CSR related policy, customer due diligence is being done, transactions
activities in a most organized way. In the year 2016, our of clients are being monitored, reporting to regulatory
CSR related expenditure totaled BDT 135.85 million. authority are being made, sanction lists are being screened
while allowing any transaction, and utmost care is being
19. Keynotes of our Environmental Policy exercised in case of handling walk-in and unknown
customers. Self-assessment and independent testing are
We get business sustenance and support from the being done to evaluate our compliance status in respect
community and environment we operate in. Logically, of AML and CFT. We do not put any officer in operation
we want to give back something in return to them. The without giving him training on AML and CFT. The policy
keynotes of our environmental policy are given below: and procedure are periodically reviewed and updated to
accommodate new and emerging issues.
We comply with environment-related laws and
regulations. 21. Public Disclosure
We are environment-friendly in our core business The Bank’s disclosure controls and procedures are
practices. designed to ensure that information required to be
We apply energy saving devices at office. disclosed are disclosed timely and with full accuracy.
We promote activities for environment protection.

22. Customers-Our Partners
We operate in an environmentally responsible
manner. Our customers do not just need a Bank. They need a
partner which we are. As a partner, we provide them
We make public disclosure about our environmental financial flexibility and speak the same language. With our
policy. profound understanding of the business and missions of
We confide in the society and the community. our customers and the challenges being faced by them,
We lend our support to community development. we focus on delivering highly efficient products and
services. We always work for new and better ways to serve
We encourage our employee for efforts to protect them.
environment in their private life.
We support initiatives of individuals and institutions 23. Outlook
in community development.
Southeast Bank began its journey in 1995 and held
We work in harmony with the society for mutual
excellent position consecutively over the years. It earned
advantage.
good profit and declared dividend at encouraging rates
We ensure that no harm is caused to the environment to the shareholders. Due to our long presence and
as a result of our operations. successful journey over the last 22nd years, we have been
able to deepen our relationship with customers. We had
20. Status of Anti-Money Laundering (AML) and another good year in 2016 and expect reasonably that
Combating Financing of Terrorism (CFT) the momentum will continue in 2017 and beyond. Our
Initiatives of the Bank continuous success over the years laid foundation for
tangible results in the upcoming years.
Money laundering and financing of terrorism have
emerged as major threats to peace and growth of Our mistakes of the past have been examined, learned
economies across the globe. To combat the criminal from and then left behind. We have shifted our focus on
activities in Bangladesh, there are sufficient laws in the future and made sure our every employee re-engages
place. Money Laundering Prevention Act – 2012 and himself in our journey into the future.
Anti-Terrorism Act-2009 were enacted by the country’s
Parliament. These laws were also amended. Apart from We are proud of our achievement, mindful of our
the above, Bangladesh Financial Intelligence Unit (BFIU) weaknesses and careful of the future. I tend to be optimistic
prescribes guidelines for prevention of money laundering about success in the next year. Our aim is for each of our
and combating financing of terrorism. business to be market leader in its chosen areas through
the backing of superior quality customer service and wishers, the Government of the People’s Republic of
salesmanship. More intelligent ways of doing business is Bangladesh, Bangladesh Bank, Registrar of Joint Stock
expected to enable us to leapfrog old methods. The best Companies and Firms, the Bangladesh Securities and
way for us to grow is to innovate and to be better than the Exchange Commission, the Dhaka Stock Exchange
peers and others racing with us in competition. Limited, the Chittagong Stock Exchange Limited and all
others concerned who have supported us and extended
Our products and services are best in class. We deliver to us their valued co-operation. We look forward to their
excellence. We strive for continuous improvement. We continued support, co-operation and guidance that
plan to hold our discipline and continue to strengthen are our constant source of encouragement in the days
the infrastructure, staff, officers, brand, information ahead. We reiterate with firm commitment that we will
technology and customer relationship. We will continue remain disciplined, compliant and result-oriented in all
to capitalize on our strength, remove weaknesses, make our endeavors and in return seek their continued co-
use of opportunities and mitigate threats to reach new operation.
heights of operational excellence. The Bank’s Board looks
forward to making further progress in the upcoming years. I also thank the respected shareholders for attending
the 22nd Annual General Meeting and contributing
Bangladesh economy is growing from strength to meaningfully to the deliberations and adoption of
strength. It is well-balanced and in good shape. resolutions against the agenda.
Bangladesh has also improved its competitiveness for the
fourth year according to Global Competitiveness Report. May the Almighty Allah in His infinite mercy bestow upon
It has moved up one notch to 106 out of 138 countries on us His compassion and blessings.
the Global Competitiveness Index for 2016-2017 prepared
by Global Economic Forum. It is positive that Bangladesh Allah Hafiz
has increased its score and is improving gradually. Besides,
extreme poverty in Bangladesh declined further to 12.9% With warm regards,
in the fiscal 2015-2016 according to World Bank. The latest
official statistics put the country’s economic growth at Sincerely yours,
7.11% in the last fiscal. The growth of national economy
denotes added business for banking industry.
Based on the state and trend of Bangladesh economy, we

look to the future with energy and enthusiasm. However, Alamgir Kabir, FCA
we will continue to place high-value importance on your Group Chairman
support and encouragement for our business success.
24. Acknowledgement
I am thankful to the Almighty Allah for the business success

of the Bank in 2016 amid competitive and unfavorable
business environment. I also take the opportunity to
thank the Directors of the Bank for their support and
input 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. I conclude
by conveying my very sincere and special thanks to our
respected shareholders, valued customers, patrons, well-
Senior Management
Team
From Left
Shahidur Rahman Khan Senior Executive Vice President

Pritish Kumar Sarker Senior Executive Vice President
Muhammad Shahjahan Additional Managing Director
S. M. Mainuddin Chowdhury Additional Managing Director
M. Kamal Hossain Managing Director (Current Charge)
Mohammed Gofran Additional Managing Director
A.K.M Nurul Alam Additional Managing Director
Haradhan Banik Senior Executive Vice President
Names of the Committees and

their Members
Management Committee (MANCOM)
Sl. No. Name and Designation Position in MANCOM
1 M. Kamal Hossain, Managing Director (Current Charge) Chairman
2 Mohammed Gofran, AMD Member
3 S. M. Mainuddin Chowdhury, AMD Member
4 Muhammad Shahjahan, AMD Member
5 A.K.M Nurul Alam, AMD Member
6 Pritish Kumar Sarker, SEVP Member
7 Haradhan Banik, SEVP Member
8 Shahidur Rahman Khan, SEVP Member
9 Fahmida Chowdhury, EVP Member
10 Md. Shahjahan Sarker, EVP Member
11 Md. Mosharraf Hossain, SVP Member
12 Lt Col Md Abdur Rafique, psc (Retd), SVP Member
13 Shamim Ara Khanom, SVP Member
14 Md. Abul Kalam Howlader, SVP Member
15 Md. Amir Hossain Bhuian, SVP Member
16 Md. Abdus Sabur Khan, SVP Member
17 Khandaker Khaled Hassan, SVP Member
18 Mostofa Meer Khaled Omar, VP Member
19 Md. Minhazur Rahman, VP Member
20 A.K.M. Monirul Islam, VP Member
21 Mohammed Kamruzzaman, VP Member
22 Lt Cdr (Retd) Wares-Ul-Matin, VP Member
23 Abu Sabed Sayfullah, SAVP Member
24 Mohammad Aminul Haque, FCA, ACMA (CIMA), CGMA, SAVP Member
25 Md. Jahangir Kabir, SAVP Member
26 Navera Alam, SAVP Member
27 Mohammad Tanveer Rahman, AVP Member

SEBL at a glance
Asset Liability Committee (ALCO)
Sl. No. Name and Designation Position in ALCO
1 M. Kamal Hossain, Managing Director (Current Charge) Chairman
2 Mohammed Gofran, AMD Member
3 S. M. Mainuddin Chowdhury, AMD Member
4 Muhammad Shahjahan, AMD Member
7 Mohammad Aminul Haque, FCA, ACMA (CIMA), CGMA, SAVP Member
8 Md. Jahangir Kabir, SAVP Member Secretary
Central Compliance Unit (CCU)
Sl. No. Name and Designation Position in CCU
1 Muhammad Shahjahan, AMD CAMLCO
2 Haradhan Banik, SEVP Deputy CAMLCO
6 Md. Amir Hossain Bhuian, SVP Member
7 Khandaker Khaled Hassan, SVP Member
8 Abu Sabed Sayfullah, SAVP Member
9 Md. Feroj Hoshen, SAVP Member
10 Hafizur Rahman, SO Member

Committee for Evaluation of the Effectiveness Head Office Credit Review Committee
of Management Reporting System (HOCRC-2)
Sl. Position in Sl. Position in

Name and Designation Name and Designation
No. CEEM No. HOCRC-2
1 S. M. Mainuddin Chowdhury, AMD Chairman 1 Pritish Kumar Sarker, SEVP Chairman
2 Shaidur Rahman Khan, SEVP Member

Member
3 Mostofa Meer Khaled Omar, VP
3 Shamim Ara Khanom, SVP Member Secretary
4 Khandaker Khaled Hassan, SVP Member Tender Committee

5 Md Jahangir Kabir, SAVP Member Sl. Position in
Name and Designation
No. PC
Mohammad Aminul Haque, FCA, Member
6
ACMA (CIMA), CGMA, SAVP Secretary 1 Mohammed Gofran, AMD Chairman
Integrity Committee 2 S. M. Mainuddin Chowdhury, AMD Member
Position 3 Md. Shahjahan Sarker, EVP Member

Sl.
Name and Designation in the
No.
Committee 4 Lt Cdr (Retd) Wares-Ul- Matin, VP Member
1 Muhammad Shahjahan, AMD Chairman 5 Abu Sabed Sayfullah, SAVP Member
2 Haradhan Banik, SEVP Focal Point Mohammad Aminul Haque, FCA,

6 Member
ACMA (CIMA), CGMA, SAVP
Member
7 A.K.M. Moshiour Rahman, SPO
4 Khandaker Khaled Hassan, SVP Member Secretary
5
Mohammad Aminul Haque, FCA,
Member Procurement Committee
ACMA (CIMA), CGMA, SAVP
Sl. Position
6 Md. Feroj Hoshen, SAVP Member No. in PC
M. Kamal Hossain, Managing

1 Chairman
Head Office Credit Review Committee Director (Current Charge)
(HOCRC-1)
2 S. M Mainuddin Chowdhury, AMD Member
Sl. Position in
Name and Designation 3 Shahidur Rahman Khan, SEVP Member
No. HOCRC-1
1 Mohammed Gofran, AMD Chairman 4 Md. Mosharraf Hossain, SVP Member
5 Lt Cdr (Retd) Wares-Ul- Matin, VP Member

Mohammad Tanveer Rahman,
Member 6 Member
3 Shaidur Rahman Khan, SEVP SAVP
Secretary
Member
7 A.K.M. Moshiour Rahman, SPO
4 Mostofa Meer Khaled Omar, VP Member Secretary
Supervisors of the Branches Taskforce for Monitoring and Recovery
SEBL at a glance
of Rescheduled and Restructured Loans
Sl.
No. Position
Sl.
1 Mohammed Gofran, AMD Name and Designation in the
No.
2 S.M. Mainuddin Chowdhury, AMD Committee
3 Muhammad Shahjahan, AMD Head of

1 Mohammed Gofran, AMD
Taskforce
4 Pritish Kumar Sarker, SEVP
5 Haradhan Banik, SEVP
6 Shaidur Rahman Khan, SEVP
7 Md. Shahjahan Sarker, EVP
8 Md. Mosharraf Hossain, SVP 5 Mostafa Meer Khaled Omar, VP Member
9 Shamim Ara Khanom, SVP 6 Md. Shaheen Miah, SAVP Member
10 Md. Amir Hossain Bhuian, SVP 7 Head of Respective Branch Member

11 Mohammad Omar Faruque, VP Member
8 Md. Minhazur Rahman, VP
Secretary
12 Mostofa Meer Khaled Omar, VP
13 Md. Minhazur Rahman, VP
Taskforce for Recovery of Written-Off
14 Md. Shaheen Miah, SAVP
Loans
Mohammad Aminul Haque, FCA, ACMA (CIMA),
15
CGMA, SAVP Position
Sl.
16 Md. Jahangir Kabir, SAVP Name and Designation in the
No.
Committee
17 Abu Sabed Sayfullah, SAVP
Head of
18 Muhammad Wahidur Rahman Patwary, SAVP 1 S.M. Mainuddin Chowdhury, AMD
Taskforce
19 Kazi Abu Taher, SAVP 2 Pritish Kumar Sarker, SEVP Member
20 Syed Abu Naser, SAVP
Lt Col Md Abdur Rafique, psc
21 Mohammed Showkat Hayat Khan, SAVP 3 Member
(Retd), SVP
22 Mohammad Kamruzzaman, SAVP 4 Head of Respective Branch Member
The Managing Director chairs the meeting of the
5 One Representative of ICCD Member
Supervisors.
Member
6 Md. Mosharraf Hossain, SVP
Secretary
IT Steering Committee
7 Md. Akhtaruzzaman, SPO Member
Sl. Position
Name and Designation in the
No. Committee Taskforce for Recovery of Classified
1 S. M. Mainuddin Chowdhury, AMD Chairman Loans and Advances
2 Pritish Kumar Sarker, SEVP Member Position
Sl.
3 Haradhan Banik, SEVP Member Name and Designation in the
No.
Committee
Head of
Member 1 Pritish Kumar Sarker, SEVP
5 Khandaker Khaled Hassan, SVP Taskforce
Secretary
6 Mohammed Kamruzzaman, VP Member
7 Kazi Md. Ehasanuzzaman VP Member
Mohammad Aminul Haque, FCA, 4 Md. Mosharraf Hossain, SVP Member
8 Member
ACMA (CIMA), CGMA, SAVP 5 Head of Respective Branch Member
9 Md. Jahangir Kabir SAVP Member
Member
6 Md. Akhtaruzzaman, SPO
10 F.M. Iqbal Bahar Khan, AVP Member Secretary
Corporate
Management
Committee of
Governance
the Bank
Disclosure
(MANCOM)
Checklist
Managing
Director’s
Review
M. Kamal Hossain
Managing Director
(Current Charge)
At the outset, I would like to express

my immense gratitude to Almighty
Allah that Southeast Bank performed
remarkably well during 2016 and
positioned itself admirably in the
industry, despite a challenging
environment for the banking industry
i.e. lower interest margins, weak
credit growth, non-performing
loans and surplus liquidity etc.
Surmounting these challenges, we
are successfully steering ahead with
great resilience. Southeast Bank’s
stability and growth in the industry is
a reflection of its dynamic structure,
innovative products, prudent policies,
persistent endeavor to render quality
services to its valuable clients and its
commitment to strictly comply with
regulatory norms and requirements.
Economic Roundup Earnings per share and Book Value per share were
at BDT 2.66 and BDT 10.00 respectively. Return on
In the backdrop of improved law and order situation, Equity was at 9.06 percent at the end of 2016.
stable political environment in the country, better
management of energy resources and declining trend Bank’s financial soundness is reflected in strong CRAR
in global commodity prices, the year 2016 witnessed (Capital to Risk weighted Assets Ratio) which was
marked improvement in key macroeconomic indicators 12.15 percent according to Basel III as on December
which was reflected through economic growth and 31, 2016.
rapid infrastructure development. The successful
implementation of mega projects like Padma Bridge, The cost to income ratio stood only at 33.84 percent
Rooppur Nuclear Power Plant, number of giant Flyovers, which is far below the industry average and it is a
Metro Rail, Express Way etc. would usher in an era of testimony to the Bank’s commitment to achieving
development and prosperity for the country. operational controls and efficiencies.
Business and Financial Achievements Risk Management
The financial results of the Bank reflect healthy growth We continue to prudently manage risk throughout
in quality assets, earnings and shareholders’ equity. In the bank while maintaining a strong risk management
spite of the challenges posed by changing interest rate culture. To achieve the desired objective, Southeast Bank
environment, we managed to achieve exceptional results has put in place an efficient Risk Management System
with consistent growth in profitability. The growth was to manage risk within acceptable levels and ensure that
enabled by a strategy focusing on trimming down the cost fresh lending decisions are not only commercially viable
of deposits through procuring low-cost deposits coupled but carry manageable credit risk. The objective of this
with a strong risk management framework. Against this architecture is to ensure that the asset quality is sustained
backdrop, I would like to give an overview of the Bank’s against economic shocks and sufficient capital buffers are
performance in important parameters as below: available to withstand them.
Total deposits grew by BDT 19,542.34 million which Service Excellence

is 9.29 percent more than that of last year. To provide
a strong footing for managing the cost of deposits, Customer centricity is instilled in all our policies, systems
bank consciously focused on procuring retail and processes. We have devised a service excellence
deposits and in the process, high cost bulk deposits guideline to ensure superior customer service to our
(FDRs) were reduced proportionately. Therefore, low- clients. We provide a wide array of products and services
cost deposit grew by 21.62 percent and total low- to individuals, companies and institutional investors, with
cost deposits stood at 35.46 percent of total deposits a convenience to transact, save and borrow in the best of
as on December 31, 2016. ways possible. It is our ongoing endeavor to understand
the unique requirements of our customers and to cater to
Total asset base of the bank amounted to BDT these requirements to the best of our abilities. With this
291,798.01 million recording an impressive growth of end in view, we are continuously collecting feedback from
11.92 percent; while loans and advances increased by the customers to improve our services and exceed the
13.61 percent and stood at BDT 191,865.59 million. expectations of our customers. We have also successfully
introduced a ‘Customer Charter’ in line with the guidelines
The SME portfolio of the Bank increased by 19.62 of the Bangladesh Bank.
percent to BDT 41,287.20 million.
Initiative for Financial Inclusion
In 2016 total Import business grew by 12.99 percent
to BDT 171,531.73 million and Export business by The Bank has been chasing a very well thought out
15.96 percent to BDT 146,606.09 million. expansion plan with a view to taking its brand image to
every corner of the country and ensure availability of state
During the year, non-funded income contributed by of the art banking products and services to its valued
business-related fees and commissions increased by clients. Southeast Bank opened six (6) new branches and
5.20 percent over that of last year. installed eleven (11) new ATM booths in different locations
across the country reaching the total number of branches
Operating profit of the bank grew by BDT 468.95 at one hundred twenty eight (128) and number of ATM
million and reached BDT 8,503.22 million which booths at one hundred seventeen (117) as on December
shows 5.84 percent growth over that of last year. 31, 2016. Bank’s presence in the unbanked areas of the
country has brought a breakthrough in accelerating In the process recently, southeast Bank has introduced
SEBL at a glance
economic activities in remote areas. It displays our web based live chat solution for the convenience of its
commitment to the national agenda of financial inclusion. customers in addition to 24X7 call center.
The bank has also established three (03) exchange houses
in Australia, United Kingdom and South Africa basically for Looking Ahead
expediting inward remittance flow for the country.
As we think about what the future holds, with the team
Capital Base we have and the institution we have built, there is a
good reason to be optimistic and excited about what
Southeast Bank has built up a strong balance sheet lies ahead. The year 2017 is expected to be the year
that provides a platform to accelerate business growth. of growth as major macro-economic fundamentals
It is a highly capitalized Bank. We maintained capital remained fairly positive during 2016 which will continue
significantly above the requirement of the regulator and to contribute to our economic growth and development.
our Tier 1 common equity capital ratio today exceeds the Various development and policy initiatives taken by the
minimum requirement of Basel-III standards. As such the Government are expected to drive the economy to a
CRAR of the Bank stood at 12.15 percent as on December higher growth trajectory in the years ahead. Southeast
31, 2016 which is well above the regulatory requirement Bank is well positioned to benefit from the transformation
of 10.625 percent. that is taking place in the banking landscape with low
interest rates and intense pressure on margins and
Impaired Asset Management volumes on one hand and technology driven exciting
developments in new products and services on the other.
For the banking sector, 2016 had been a turbulent one
due to worsening asset quality and its implication on Our Strategies for 2017
the credit risk profile of banks. Deterioration in asset
quality has an adverse impact on profitability and capital While celebrating the success of the Bank, the Management
requirement for Basel III compliance. While the recovery also remains vigilant of the future challenges. In order to
of non-performing loans remained a corner stone of our maintaining the current growth trends and capturing due
strategy, the Bank did not shy away from new profitable share in a highly competitive operating environment,
lending opportunities to strengthen the asset portfolio. it is required to continuously revamp its strategies and
With all the concerted and coordinated efforts, the Bank keep adding on latest products and services by ensuring
could restrict its non-performing loans to 4.89 percent. appropriate monitoring system to stay a step ahead of
its competitors. Among others, the following are the
Human Capital priorities for 2017:
Our people are undoubtedly the core asset of our bank Concerted efforts and aggressive marketing to
and we acknowledge their hard work and dedication in procure more low-cost deposits with a view to
elevating our bank to where it is today. We are always reducing cost of deposits and improving Net Interest
conscious of the importance of retaining and attracting Margin (NIM) of the Bank.
the best talents. Our human resource management
policies are designed on the principles of care, capacity Emphasizing on Retail Credit, SME and Agri-credit to
building, knowledge sharing and fairness. Besides hiring make the loan portfolio more diversified.
best resource on purely merit basis, performance of
every staff member is evaluated on a uniform yardstick Focusing on disciplined credit risk management
to help promoting culture of merit and fair play in the especially credit appraisal process including
organization. Our Training Institute is relentlessly working documentation and monitoring with a view to
and implementing training programs based on training maintaining strong asset quality.
need assessment of each employee.
As banking industry is predicted to remain highly
Leveraging Technology competitive with low interest margins, fee-based
income and non-funded incomes shall be a strategic
Technological leadership is an absolute necessity for imperative in 2017.
the delivery of value to all our stakeholders amidst
rapidly changing life styles and paradigms. Southeast Maintaining asset quality by restricting increment
Bank is committed to place cutting edge technology at of non-performing assets through early detection,
the forefront of our delivery channels and operations. monitoring, corrective action plans, shared
It would also create a need to move forward with information and disclosures to keep future recurrence
advanced technology as well as mitigation of cyber risks. in check.
Strengthening the recovery against rescheduled, Exchange Commission and other stakeholders who
classified and written-off loans for reducing NPLs to helped us make 2016 yet another successful year. I take
a large extent through intensive recovery measures this opportunity to extend my wholehearted appreciation
and further arresting fresh slippages. to the management and staff for their indefatigable
commitment and hard work that have resulted in such
Taking all required steps to maintain its position commendable results. We shall continue to rely on their
as a fully compliant bank in line with regulatory support, dedication and commitment in taking Southeast
guidelines. Bank forward together to even greater heights.
Strictly enforcing ‘code of conduct’ for all employees

and elevating standard of service to new heights of
excellence for all stakeholders.
With our rock-solid energy, seamless team work,

unwavering unity of purpose and faith in Allah, I have
no doubt that together we will continue to meet the
challenging expectations of our shareholders, customers, M. Kamal Hossain
employees and regulators in the years to come, In-Shaa- Managing Director
Allah. (Current Charge)
Note of Thanks
My heartfelt gratitude to our customers for enabling us

to achieve record excellent performance in 2016. I am
greatly indebted to our honorable Chairman and Board
of Directors for their valuable guidance, our Foreign
partners, Bangladesh Bank, Bangladesh Securities and
Directors’
Report
Evaluation of our performance
to date and strategies to
reach new heights of
success and excellence
Directors’ Report
Dear Shareholders,
The Board of Directors of Southeast Bank Limited takes this

opportunity to welcome you all to the 22nd Annual General
Meeting of the Shareholders and has immense pleasure to present
before you the 22nd Annual Report of the Bank together with the
Auditors’ Report for the year ended December, 2016.
1. World economic scenario in 2016 and prospect the possible geopolitical developments around the world.
for 2017 All these lingering uncertainties together may have a
significantly negative effect on global trade and growth
In 2016, world economy grew by 2.3 percent and the prospects.
projected growth in 2017 is 2.7 percent (source: Global
Economic Prospects by World Bank Group, January 2017). 2. State of the Bangladesh Economy in 2016 and
The moderation in growth in 2016 occurred because of Economic Trends
slow growth in developed economies, persistent low
commodity prices, timid global trade, thinning capital flows Because of prevailing economic and political stability
and policy uncertainty. Commodity-export dependent in 2016, Bangladesh economy was able to achieve 7.11
developing economies of Africa, Latin America and Middle percent growth in GDP for the first time within the last
East found it difficult to accustom to low prices for oil and nine years (source: Ministry of Planning). Industry played
other key commodities. Except few Asian economies, the main role in higher GDP growth although service and
commodity-import dependent countries could not take agriculture also made good contribution. Low fuel prices
substantial leverage from the situation because of weak in the global market helped inflation rates to stay low
demand in developed countries. Commodity exporting (5.38% at the end of the year). Export earnings increased at
countries as a group grew at lower rate than commodity a higher rate than imports and export-GDP ratio increased
importers. In 2016, growth of advanced economies is in FY2016 while import-GDP ratio declined. Remittance
estimated to have slowed to 1.6 percent while Emerging flow to the country experienced a declining trend despite
Market and Developing Economies (EMDEs) grew by 3.4 increase in the number of migrant workers.
percent as previously estimated.
Other macroeconomic indicators including foreign
In 2017, advanced economies are projected to grow exchange reserve ($32 billion equivalent to 8 months
by 1.8 percent and the US economy in particular by 2 import cost), stable exchange rate and credit flow in
percent. Growth in EMDEs is expected to accelerate to private sector had been broadly in line with the target.
4.2 percent. Emerging Market and Developing Economies
(EMDEs) representing commodity importing countries are In FY2016, investment as a share of GDP was 29.7 percent,
expected to experience solid growth while the outlook lower than the target for the fiscal year. The economy is
for EMDE regions dependent on commodity exports moving forward with big public sector development
is likely to be mixed. This projection is however deeply projects, including Padma Bridge, metro rail, elevated
constrained by the growing uncertainty in the policy expressway, flyovers, dozens of economic zones and
stance of the new US administration, the impact of Brexit, new seaport. Capital markets have begun to make a
growing challenges to globalization and free trade and turnaround because of policy shifts and buoyant liquidity.
In 2016, the banking sector continued to face challenges Millionaire Deposit Scheme, SME Banking, Corporate
like excess liquidity, rise of non-performing loans, lower Banking, Syndicate Loan, Monthly Savings Scheme,
capital adequacy etc. Fixed Deposit, Monthly Income Scheme, Pension Saving
Directors’ Report
Scheme, Multi-Millionaire Gold Deposit Scheme(kept
We expect, in 2017 Bangladesh economy will continue in abeyance for the time being), Mohor Saving Scheme,
to be on a high growth trajectory with the objective to Zakat Account, Cash Wakfh Account, Wage Earner Pension
achieve 7.2 percent growth. It is a realistic goal and should Scheme, SMS Banking etc. in addition to our traditional
be achieved through maintaining macroeconomic credit and foreign trade related products and services.
stability, increasing efficiency in project implementation
as well as revenue mobilization, expediting private sector High quality customer service through the integration
investment, building institutional capacity, improving of the latest and state of the art banking technology
governance and bringing back stringent discipline in the and products is our tool to achieve success. Customers
financial sector. are our first priority. We are trying hard to provide a
system of one stop solutions for customers by providing
3. An overview of the Bank. a spectrum of services. Our employees have mastered
new technology, enhanced their product knowledge and
Southeast Bank Limited, a second generation private honed their skill to help customers meet their financial
commercial bank, emerged in 1995 amid liberalization of goals. We want to be the best at helping customers
global economies. Currently, its Authorized Capital is BDT become financially better off by providing free advice,
15,000.00 million and its capital and reserve reached BDT innovative leading-edge financial solutions, choice and
34,056.28 million as on December 31, 2016. Its vision is to convenience. Irrespective of customers’ size and type, we
stand out as a premier banking institution in Bangladesh aim at delivering the best customer service by meeting
and contribute significantly to the national economy. their unique and different needs in a professional, ethical,
friendly and knowledgeable manner.
The Bank, in the meantime, successfully completed
twenty two years of banking operations registering We are pledge-bound to turn Southeast Bank into a modern
significant growth in performance indicators. In 2016, the banking institution, dynamic in actions, progressive in
Bank earned an after tax profit of BDT 2,435.07 million. The programs, honest in dealings, just in judgment, futuristic
deposit of the Bank grew by 9.29 percent to BDT 229,973.43 in attitude, fair in approaches and devoted to high quality
million and loans and advances by 13.61 percent to BDT service to customers. Our charted plans are aimed at
191,865.59 million compared to those of 2015. boosting modern management, advanced technology,
good profitability, sound financial strength and fair image
Operational excellence coupled with qualitative of the Bank. We are firmly committed to transparent,
improvements continued to be of paramount importance responsible and accountable corporate governance with
to the Bank. At present, the Bank has 128 branches and the participation of our strong and most capable team of
2 Off-Shore Banking Units across the country. Plans have professionals and under the prized policy directives and
been made to raise another 10 branches in 2017. Our guidance of the Board of Directors of the Bank.
journey towards greater operational success continues
with increased energy and enthusiasm. Southeast Bank carries out its business activities keeping
in mind its core values, norms of business, commitment
As we face the stiff challenges ahead on the way to further to clients, society and the environment at large. Southeast
improving the profitability of the Bank, we rely on our Bank in all its activities and operations tries to establish
skilled and experienced workforce. Our strengths are our the Green Banking practice and attain a sustainable
close and cordial partnership with customers, our firmly growth. The Bank in its all endeavors wants to assure its
anchored presence in the country’s strategic places of shareholders a steady and competitive return on their
commercial and business importance and global reach investment in line with the best among peer institutions.
through our correspondent Banks for expansion of foreign
trade, foreign exchange and remittance business. Our 4. Capital and Reserves
product-basket encompasses Real Time Online Branch
Banking, Islamic Banking, Merchant Banking, Dual Currency The Authorized Capital of the Bank was BDT 15,000.00
Visa Platinum Credit Card, Visa Travel Card, ATMs, Education million and paid-up capital was BDT 9,169.50 million as
Loan Scheme, Consumer Loan, Double Benefit Scheme, of December 31, 2016. The Capital and Reserves (Tier-1
Capital and Tier-II Capital) stood at BDT 34,056.28 million 5. Capital to Risk Weighted Assets Ratio (CRAR)
as compared to BDT 28,509.53 million in last year showing
an increase of 19.46 percent. Southeast Bank maintained capital adequacy ratio of
12.15 percent of the risk-weighted assets as on December
Capital and Reserve of the Bank as of December 31, 31, 2016 as against the minimum capital requirement of
2016 were as follows: 10.625 percent as set by Bangladesh Bank under Basel-III
reporting through BRPD Circular No.18 dated December
BDT in million 21, 2014 of Bangladesh Bank.
Regulatory Capital Consolidated Solo
Tier-I capital 6. Capital Market Scenario
1) Common Equity Tier-I During the year 2016, country’s Capital Markets did
- -
Capital (CET-1) not witness any noticeable performance, rather Capital
Fully Paid up capital 9,169.50 9,169.50 Markets were lackluster like recent past years. At the
Non-repayable share prevailing scenario of Capital Markets, if we compare
premium account fundamentals of some financially strong listed companies
Statutory reserve 9,170.00 9,170.00 with the trading prices of their stocks in exchanges,
we can easily determine that their stock prices are still
General reserve 247.65 247.65
under-valued in comparison to their year-end corporate
Retained earnings 3,196.97 3,171.82 declarations. Daily turnover at the exchanges was under
Minority interest in BDT 5,000.00 million almost throughout the year except
10.00 -
subsidiaries during the month of December when it increased steadily
Regulatory Adjustments above BDT 5,000.00 million level.
Goodwill and all other
108.60 108.60 Some major parameters of both stock exchanges are
Intangible assets
depicted hereunder for a glimpse of performance of DSE
2) Additional Tier-1 Capital
and CSE in 2016:
(AT-1)
3) Total Tier-1 Capital (1+2) 21,685.52 21,650.38 DSEX, the bench mark price index of the prime bourse,
Tier-2 Capital Dhaka Stock Exchange Limited improved marginally
General provision by 8.78 percent from 4,629.64 on 30th December 2015
(unclassified loans, SMA, 3,569.50 3,569.50 to 5,036.05 on 30th December 2016. Chittagong Stock
off balance sheet) Exchange Limited index, CSCX also improved from
Subordinated debt 7,400.00 7,400.00 8,572.12 to 9,369.91 in the same period and gained 9.31
percent. Combined total yearly turnover of country’s
Revaluation Reserves as
two Stock Exchanges was 1,268.95 billion as against
on December 31, 2015
1,119.87 billion in 2015, a gain of 13.31 percent. Market
(50% of Fixed Assets 2,335.43 2,335.43
and Securities & 10% of capitalization at DSE at the close of the year 2016 stood
Equities) at BDT 341,244.15 billion as against BDT 315,975.75 billion
at the end of 2015, registering a gain of 8.00 percent. The
All other preference shares
total number of active BO Accounts in Central Depository
Regulatory Adjustments System of CDBL was 2,947,952 at the end of 2016, which
Revaluation Reserves for was 3,170,047 in 2015.
Fixed Assets, Securities &
Equity Securities (Phase in 934.17 934.17 Infusion of funds from Institutional Investors, Wealthy
deductions as per Basel-III Individual Shareholders, Foreign Institutional Investors,
Guidelines) Large number of Small Shareholders, etc. to stocks of
4) Total Tier-2 Capital 12,370.76 12,370.76 financially strong companies is now the most fundamental
Regulatory Adjustments requirement for country’s ailing Capital Markets.
Revaluation Reserves for
Fixed Assets, Securities & 7. Southeast Bank Shares and Shareholders
Equity Securities (Phase in 934.17 934.17
Investors always look for a company which can meet
deductions as per Basel-III
their needs for dividend and capital gain. Honorable
Guidelines)
shareholders, who are with us since our listing with Stock
Goodwill and all other
108.60 108.60 Exchanges, witnessed a robust growth of our paid-up
Intangible assets
capital from BDT 300.00 million to BDT 9,169.50 million or
Total eligible capital (3+4) 34,056.28 34,021.14 by 2,956.50 percent. For the last few years country’s Stock
Markets have been remaining uncertain, inconsistent long period of time. Please see below the record of our
and unstable. But because of our visionary leadership, declarations of Cash Dividend and Stock Dividend:
our paid-up capital is growing and the trend of payment
of dividend is still high. We have a large number of Cash Dividend: 15%-1999, 25%-2000, 30%-2001, 20%-
shareholders which on 31st December 2016 stood at 2002, 20%-2003, 20%-2006, 15%-2007, 15%-2008, 10%-
39,009. Earning per Share, our Net Asset Value, our Trend 2010, 15%-2011, 15%-2012, 16%-2013, 15%-2014, 15%-
of Payment of Dividend and growth of our Paid-up Capital 2015 and 20%-2016.
Directors’ Report
over the years are mentioned below:
Stock Dividend: 10%-2000, 10%-2001, 10%-2002, 20%-
i) Ten years Earning Per Share (EPS) of our Company: 2003, 30%-2004, 20%-2005, 8%-2006, 25%-2007, 20%-
2008, 35%-2009, 20%-2010, 5%-2011 and 5%-2013.
Earning Per Share: 4.28-2007, 3.11-2008, 3.24-2009,
3.77-2010, 2.19-2011, 1.89-2012 3.68-2013, 4.18- 8. Deposits
2014, 3.35-2015 and 2.66-2016.
Deposits create opportunity for the bank to extend credit
ii) Ten years Net Asset Value (NAV) of our Company: facilities to its customers. Deposit mobilization is one of
the core activities of commercial banks. A proper deposit
Net Asset Value: 26.92-2007, 25.79-2008, 33.10-
structure of a bank plays significant role in increasing
2009, 23.37-2010, 23.30-2011, 22.66-2012, 23.92-2013,
its interest income. Besides, the bank can contribute to
26.77-2014, 29.67-2015 and 28.93-2016.
the functioning of the broader financial system through
providing fund to the deficit units. Southeast Bank
iii) Year-wise Paid-up Capital and Authorized Capital
maintained its liquidity position within the approved risk
of the Bank :
appetite and tolerance limits. Appropriate liquidity buffers
From the commencement of our business, our prudent were held in line with regulatory requirements, taking into
Board of Directors were planning that Bank’s capital account the risk profile and market conditions.
base should be increased in harmony with the gradual
The amount of total deposits of the Bank as on December
growth of our Bank’s lending business by raising its paid-
31, 2016 stood at BDT 229,973.43 million as compared to
up capital. Our present Paid-up Capital of BDT. 9,169.50 BDT 210,431.09 million in 2015. Competitive interest rates,
million and Authorized Capital of BDT.15,000.00 million is attractive deposit products, deposit mobilization efforts of
the result of that initial vision of strong capital base and the employees and confidence reposed by the customers
which precisely brought us here. Bank’s Paid-up Capital in the bank contributed to the notable growth in deposits.
increased by 2,956.50 percent since our listing. A chart of On the eve of the 21st anniversary, the bank conducted
Bank’s Authorized Capital and Paid-up Capital of the last customer acquisition campaign “Nibir” and launched two
five years is given below: exclusive products “Anonya” for women and “Bichokkhon”
for senior citizens. This campaign not only improved the
Authorized Paid Up Capital quantum of deposits but also brought about qualitative
Year changes in deposit structure. Deposit-mix of the bank as
(Taka in million) (Taka in million) on December 31, 2016 was as follows:
2016 BDT 15,000.00 BDT 9,169.50
Share
2015 BDT 15,000.00 BDT 9,169.50 BDT in
Particulars in Total
million
2014 BDT 15,000.00 BDT 9,169.50 Deposits
a) Current and Other
2013 BDT 10,000.00 BDT 8,732.86 30,285.06 13.17%
Deposits
2012 BDT 10,000.00 BDT 8,732.86
b) Savings Bank/Mudaraba
19,700.58 8.57%
Savings Bank Deposits
iv) Declaration of Dividend
c) Special Notice Deposits /
Since the listing with DSE & CSE in the year 2000, it Mudaraba Special Notice 25,012.17 10.88%
has been demonstrated that Southeast Bank has got Deposits
the capability of paying good rate of dividend to its d) Fixed and Scheme
Shareholders. A company with large size of paid-up capital Deposits or Term 148,426.76 64.54%
requires substantial amount of profit earning assets to Deposits
pay off dividend. It shows our judgment in selecting e) Bill Payable Accounts 6,548.86 2.85%
borrowers, our strength, sincerity and honesty to run our
primary operation, i.e. banking business smoothly for a Total 229,973.43 100.00%
9. Lending and Investment policy, position and risk exposures. ALCO is typically
Southeast Bank Limited is playing a pivotal role in the responsible for establishing, documenting and enforcing
economic development of the country by ensuring all policies that involve asset and liability management,
smooth credit flow in different sectors with balanced such as liquidity, interest rate and foreign exchange risk.
diversification. The economy of our country has been As per Bangladesh Bank guideline, Southeast Bank has
passing through a challenging times for last couple of a fully functional Asset Liability Committee (ALCO). The
years, faced with the major problem of prolonged slow Managing Director is the Chairman of the Committee.
investment position caused by uncertainties among the Other members of the Committee are Additional
investors. Amidst so many adverse challenges during last Managing Directors and strategically important Divisional
five years, Southeast Bank ensured its consistent growth Heads of Head Office. The meeting of the Asset Liability
with perfect blend of quality and quantity. Resultantly, Committee is held every month.
total lending of the Bank stood at BDT.191,865.59 million as 13. Internal Control and Compliance
on 31st December, 2016 registering 13.61 percent growth
The foundation of Internal Control and Compliance System
over previous year. Bank’s total lending (consolidated) and
of Southeast Bank Group is based on organizational
its growth rate for the last five years are shown below:
structure, policies, procedures and instructions provided
by its Board of Directors and senior management and
Outstanding at the
as per the guidelines or instructions of the regulatory
Year end of the year Growth Rate
authorities. The Board always inspires a strong control and
(BDT in million)
compliance culture based on sound understanding of
2016 191,865.59 13.61% laws, regulations and best practices that is disseminated at
2015 168,878.46 14.83% all levels. Southeast Bank Group has designed, developed
2014 147,070.81 9.05% and implemented an integrated internal control and
compliance framework set in line with the internal control
2013 134,863.82 6.21%
and compliance policies. Internal Control and Compliance
2012 126,968.97 18.34% Policies of the Group include (i) Compliance, (ii) Information
Security, (iii) Internal Audit, (iv) Risk Management, etc.
Most importantly, the Bank has put in place solid The above functions are independent of the operational
foundations through which to support it’s sustainable activities. The Audit Committee of the Group, on behalf
growth and development of the business across the of the Board of Directors, reviews the various reports of
segments in the industry. internal auditors, external auditors, Bangladesh Bank’s
inspection team and its compliance status. It also receives
10. Guarantee Business regular reports on emerging risks in each of its meetings
Bank Guarantees shortly named as ‘Guarantee’ is one of from different divisions and conducts an annual review
the non-funded business products of the bank. The Bank of the adequacy and effectiveness of the system of risk
issued guarantees amounting to BDT 16,369.36 million management as well as internal control. This system of
during 2016 favoring different Government Authorities, internal control of Southeast Bank Group is capable of
Ministries, Autonomous Bodies, Corporations, Private continually assessing and recognizing the material risks
Companies, Individuals and Multinational Companies etc. that could adversely affect the achievement of the goals
on behalf of valued clients. of Southeast Bank Group. This internal control system
also ensures immediate reporting of all the identified
11. Investment Scenario significant weaknesses and control failures together
with details of corrective actions being undertaken at
The investment portfolio of the Bank in 2016 was BDT
appropriate levels of the management.
61,731.63 million against BDT 58,829.27 million in the
previous year. The portfolio of investment included 14. Performance of Selected Liability Products as
Government Treasury Bills, Prize Bonds, Shares of Public on 31st December, 2016
Limited Companies etc. The Bank has always given
Both Traditional and Islamic Banking
emphasis on investment of funds in high yielding
areas simultaneously maintaining Statutory Liquidity Deposit
Requirements (SLR) as fixed by Bangladesh Bank time to Type of No. of
Volume
Accounts Account BDT in million
time.
CD 86,235 11,280.81
12. Asset Liability Committee (ALCO)
SND 9,624 25,012.17
Asset Liability Committee (ALCO) consists of senior SB 441,694 19,700.58
level executives with the decision making capacity and
responsibility to review, discuss and direct the financial FDR 71,466 114,612.21
Traditional Banking 16. Analysis of the Income and Expenditure

Statements
Deposit A brief analysis on Bank’s income and expenditure in 2016
Type of No. of
Volume
Accounts Accounts is given below:
BDT in million
MDS 4,296 1,921.51 Interest Income
The interest income of the bank for the year 2016 was BDT
DBS 15,801 15,494.18
Directors’ Report
16,972.33 million as compared to BDT 17,794.80 million in
MGDS 800 493.50 the previous year. The income generated from Loans and
PSS 57,590 7,374.30 Advances remained the main contributor.
WPSS 1,451 152.75 Interest expenses

Total interest expenses in 2016 was BDT 12,765.12 million
MIS 632 733.31
as against BDT 14,656.34 million in 2015 posting a decrease
MSS 37,807 3,207.68 of 12.90 percent.
ESS 10 0.76 Net Interest Income
SDBS 286 185.71 Net interest income of the Bank for the year 2016 stood
at BDT 4,207.21 million as against BDT 3,138.46 million in
MRGSS 1 0.002
the previous year resulting in an increase of 34.05 percent.
Islamic Banking Investment Income

In 2016, Bank’s income from investment was BDT 5,079.61
Deposit million as compared to BDT 5,158.54 million in the previous
Type of No. of year. Investment income consisted of interest earned on
Volume
Accounts Accounts
BDT in million treasury bills and bonds, capital gain, revaluation gain,
MMDS 261 126.49 gain from sales of shares and dividend received from
shares.
MDBS 1,553 1,002.53
Other Income
MMGDS 46 29.80
In 2016, commission, exchange and brokerage earnings
MPSS 5,056 758.15 increased to BDT 2,903.03 million from BDT 2,759.46
MWPSS 161 31.00 million in 2015. This was due to enhanced business and
trade related fee based activities.
MMIS 79 136.36
Operating expenses
MMSS 2,589 239.32
Operating expenses of the Bank was BDT 3,570.11 million
MESS 38 6.64 in 2015 which reached BDT 4,349.23 million in 2016.
MSDBS 28 10.98 Provision against Loans and Advances
Hajj Sanchaya 9 1.11 In the year under review, provision against loans and
advances was kept BDT 3,250.99 million as compared to
TMMSS 127 17.22
BDT 2,245.05 million in 2015.
MMRGSS 9 0.14
17. Asset Portfolio
15. Budget and Budgetary Control
As on 31st December 2016, total assets of the Bank stood
The Bank follows bottom up planning approach in at BDT 291,798.01 million. The break-up of total assets is
preparation of annual budget and initially invites draft given below:
proposals on different budgetary items including
deposits, advances, profitability and other businesses Particulars BDT in million
from the branches. The draft budget estimates are then
Cash and Cash Equivalents 26,152.01
scrutinized and analyzed by the Head Office Management
after discussion with the Heads of the respective Branches Investments 61,731.63
and reviewed and finalized in the “Business Policy and Loans and Advances 191,865.59
Managers’ Conference”. The Management of the bank
makes constant efforts throughout the year to achieve Fixed Assets 8,947.16
the budgetary target. Senior Management Team at Head Other Assets 3,101.61
Office quarterly reviews the variances and the progress
Total 291,798.01
towards achieving the budgetary goals.
18. Adoption of IAS and IFRS Return of Equity of the Bank for the last five (5) years is
given below:
The Institute of Chartered Accountants of Bangladesh
(ICAB) adopted the International Accounting Standards Year Percentage (%) of ROE
(IAS) and International Financial Reporting Standards 2016 9.06%
(IFRS). Securities & Exchange Commission (SEC) and
Bangladesh Bank also mandated the implementation of 2015 11.86%
IAS & IFRS. These standards and reporting system have 2014 16.51%
also been complied with by our Bank in preparation of the
2013 16.20%
Financial Statements.
2012 8.42%
19. Growth in Operating Profit for the Last 5 years
22. Provision for Income Tax
The Bank has earned operating profit of BDT 8,503.22
million in 2016 which comprises net interest income, The provision for income tax both current tax and deferred
income from investment, commission, exchange etc. tax of the Bank was kept BDT 2,855.52 million for the year
Operating profit in 2015 was BDT 8,034.27 million. The 2016 while it was BDT 2,448.07 million in the previous year.
operating profit of the Bank for the last (5) five years is
given below: 23. Profit Before Tax and Provision
The Bank earned profit of BDT 8,503.22 million during the

Operating Profit year before making any provision for bad and doubtful
Year
BDT in million debt, off-balance sheet exposures, unclassified loans and
advances and before taxes etc. as against BDT 8,034.27
2016 8,503.22
million in the year 2015.
2015 8,034.27
24. Net Profit after Provision and Income Tax
2014 8,289.76
The Bank earned net profit of BDT 2,435.07 million during
2013 6,700.20
the year 2016 after making specific provision for classified
2012 5,495.19 loans, general provision for unclassified loans and off-
balance sheet exposure, and after taxes etc. It was BDT
3,069.42 million in the year 2015.
20. Operating Income for the Last 5 years
25. Net Profit for the Last 5 years
The operating income of the Bank stood at BDT 12,852.45
million at the end of 2016 while it was BDT 11,604.39 Net Profit after tax and provision was BDT 2,435.07 million
million in 2015. The operating income of the Bank for the during the year 2016 which was BDT 3,069.42 million in
last five (5) years is given below: the previous year. Net Profit for the last five (5) years is
given below:
Operating Income
Year Net Profit
BDT in million Year
BDT in million
2016 12,852.45
2016 2,435.07
2015 11,604.39 2015 3,069.42
2014 11,617.19 2014 3,836.94
2013 9,684.80 2013 3,378.82
2012 7,831.62 2012 1,648.72
26. Statutory Reserve

21. Return on Equity for the Last 5 years
The Bank transferred to statutory reserve BDT 272.69
Return on Equity (ROE) of the Bank was 9.06 percent in million. The total amount of statutory reserve stood at BDT
2016 while it was 11.86 percent in the previous year. The 9,170.00 million as on 31st December, 2016.
27. Southeast Bank Capital Services Limited the year 2016. During the year 2016, Profit befor tax of
the Company was BDT 78.81 million whereas the Profit
Southeast Bank Capital Services Limited (SEBCSL) is a after Tax stood at BDT 59.07 million. Based on the current
subsidiary company of Southeast Bank Limited. It was trend of Bangladesh capital market, it is expected that the
incorporated on 23rd September 2010 as a Public Limited Company will reap good return from its investments and
Company with Registrar of Joint Stock Companies and earn good profit in 2017 from operations.
Firms under Company Act 1994. Initially, its Authorized
Directors’ Report
Capital was BDT 3000.00 million and Paid up Capital 28. Network Expansion Program
was BDT 1000.00 million. Subsequently, Authorized
Capital was enhanced from BDT 3000.00 million to BDT In today’s intense competition, most of the financial
6000.00 million. Its Paid up Capital was enhanced from institutions are striving hard to display their best possible
BDT.1000.00 million to BDT 5500.00 million by issuing new efforts to be competitive. As customers are more
shares. As the holding company, Southeast Bank Limited fragmented, Banks are trying to enrich their services
owns 99.82% of the total shares of the company. and network to serve the customers. Southeast Bank,
as a leading financial institution, always gives highest
The company has a professional Board of Directors. It is priority to quicken its branch expansion programme to
managed by a professional management team under the net the un-banked population across the country. It is
policy guidelines of the Board. The Board comprises of the to be mentioned that business is the prime objective of
following professionals: any branch expansion strategy of a bank and definitely
a new branch is aimed at plugging geographical gaps
Sl. No. Name of the Directors Position in their network. Our Bank invests in network expansion
and new technology adoption to achieve competitive
01 Mr. Alamgir Kabir, FCA Chairman
edge. Presently our bank is functioning with country-
Mr. A.H.M Moazzem Hossain wide network of 128 branches covering all divisions of the
02 Director
Independent Director
country. Division-wise distribution of branches are given
Mr. M. Kamal Hossain below:
Managing Director
03 Director
(Current Charge) Nominee of
Urban Rural
Southeast Bank Limited Division Total
Branches Branches
04 Dr. Zaidi Sattar Director
Dhaka 33 31 64
Mr. Md. Khursheed Alam
Chittagong 12 18 30
05 Nominee of Director
Southeast Bank Foundation Sylhet 07 05 12
Mr. Muhammad Shahjahan Khulna 04 04 08
Director
06 Managing Director Rajshahi 08 01 09
(Ex-officio)
(Current Charge) Barisal 01 - 01
Rangpur 02 - 02
SEBCSL has been carrying out operation as a full-fledged
Merchant Bank since its inception in 2010. The main focus Mymensingh 02 - 02
of the Company is disciplined operation of merchant Total 69 59 128
banking within the precinct of the regulatory rules and
regulations. The main products and services of SEBCSL To facilitate the female entrepreneurs, the bank has set
include, but not limited to, Portfolio Management, up two Ladies’ Branches in Dhaka city. The Bank is also
Pre-IPO Placement, Underwriting Management, Issue offering Offshore Banking facilities through 02 (Two)
Management and Corporate Advisory Services. The Offshore Banking Units (OBU) in Dhaka Export Processing
Company’s own portfolio investment in the capital market Zone and Chittagong Export Processing Zone.
also increased significantly over the years.
Moreover, the Bank is providing “Shariah-Based Islamic
The Company has 11 employees including Managing Banking Services” to the customers. Out of 128 (One
Director (cc). They are honest, sincere, hard working, hundred twenty eight) Branches of the Bank, 05 (Five)
committed, innovative and forward looking. They are Branches are designated as Islamic Banking Branches
also devoted professionals who are relentlessly working located at Dhaka, Chittagong and Sylhet region. At present
hard for the continuous growth and development of the Bank’s Authorized Dealer (AD) Branches are 21 (Twenty
company. one). The Bank is also providing “Evening Banking Service”
through 27 (Twenty seven) Branches to further augment
The country’s capital markets have been showing signs its service delivery at extended banking hours. To expand
of maturity and improvement since the second half of the geographical outreach and to cover more strategic
locations of business importance, SEBL has applied to capital adequacy. The Bank has published the disclosure
Bangladesh Bank for opening 10 new branches in the year incorporating all the changes in the revised guidelines. The
of 2017. Bank has also made a significant progress in implementing
Basel-III and preparing itself to meet the upcoming
29. Implementation of Basel III challenges for implementing advanced approaches of
calculating credit, market and operational risks.
Bangladesh has entered into the Basel III regime from
January 01, 2015. Bangladesh Bank revised the capital 30. Supervisory Review Process
standard based on Basel III and planned to implement it
gradually from 2015 to 2019. A Capital Conservation Buffer Supervisory Review Process (SRP) is the second pillar
(CCB) of 2.5% is to be built up @ 0.625% each year from the of Basel-III framework. The aim of Pillar 2 processes is to
beginning of 2016 to 2019. This is in addition to existing enhance the link among institution’s risk profile, its risk
Minimum Capital Requirement (MCR) of 10%. It means management, risk mitigation systems and its capital
CRAR requirement will be 12.50% from January 01, 2019. planning. Bank’s responsibility is to develop sound risk
management processes that will adequately identify,
To increase the quality and quantity of the capital base of measure, aggregate, and monitor its risks. The task of the
the Bank, Basel III has introduced the following measures: SRP team is to review and evaluate the ICAAP (Internal
Capital Adequacy Assessment Process) and the soundness
1. Tier 1 capital has been divided into two parts: Common of the internal governance processes within which it is
Equity Tier 1 (CET1) and Additional Tier 1 (AT1). used.
2. The definition of capital has been made stringent. Tier SEBL has a 10 members SRP team at management level
3 capital has been eliminated. headed by the Managing Director. The team periodically
reviews the risk assessment process and the requirement
3. The Bank has to maintain 3% leverage ratio along with of adequate capital against all plausible risks. The Bank
Liquidity Coverage Ratio (LCR) of 100% or more and follows Bangladesh Bank guidelines ‘Revised Process
Net Stable Funding Ratio (NSFR) of more than 100%. Document for SRP-SREP Dialogue on ICAAP’ to assess
level of risks and capital requirement. It also reviews the
Southeast Bank is well positioned in respect of capital policy documents that would supplement the whole risk
and risk management. It has commenced reporting of mitigating process under SRP. The ICAAP report of 2015
CRAR, leverage and liquidity ratio from January 01, 2015 has already been sent to Bangladesh Bank and as per the
following the new risk based capital adequacy framework. latest reports the Bank will require of BDT25,179.80 million
The overall scenario as of December 31, 2016 under Pillar-I to act as cushion against risks under Pillar-I and Pillar-II of
is depicted below: Basel-III. However, the Bank has been maintaining BDT
28,490.49 million as capital including Tier-I and Tier-II.
Solo Consolidated Leverage The Board of Directors, the senior management and the
LCR NSFR
CRAR CRAR Ratio operational units of the Bank are working together for
12.18% 12.15% 6.14% 118.50% 109.53% establishing sound risk management.
The Bank has a Supervisory Review Process (SRP) team 31. Corporate Governance
comprising of members from the senior management.
They participate in dialogues with the Supervisory One of the basic policies of the Bank is to strengthen its
Review Process Evaluation (SREP) team of Bangladesh corporate governance status by establishing responsible
Bank on the issue of maintenance of adequate capital management system and strengthening supervision.
to compensate all the risks associated with business. Efforts are also being geared up to improve the
Stress testing is an integral part of Supervisory Review transparency and accountability of the management.
Process and is conducted through a prescribed format While putting efforts to achieve corporate objectives,
given by Bangladesh bank where impact on Capital to Southeast Bank gives top priority to establishing
Risk Weighted Asset Ratio (CRAR) is assessed taking into appropriate corporate governance standard at all levels
account plausible shocks. and in all units. A report on Corporate Governance of the
Bank in 2016 is included in this Annual Report.
Pillar-III of Basel III aims at promoting market discipline
through regulatory disclosure requirements. The reports 32. Declaration of the Compliance of BSEC
on disclosure enable market participants to assess more Notification
effectively key information relating to Bank’s regulatory The following disclosures are made in compliance of
capital and risk exposures in order to instill confidence certain provisions contained in the BSEC Notification
about the Bank’s exposure to risk and overall regulatory dated August 7, 2012.
a) The financial statements prepared by the 36. Acknowledgement

management present fairly its state of affairs, the result
of its operations, cash flows and changes in equity. The Board expresses gratitude to the Almighty Allah for
the success of the Bank in 2016. The Board extends thanks
b) All transactions have been recorded in the accounting to the valued customers, patrons and well-wishers for
records and are reflected in the financial statements. their continued support and co-operation to the Bank.
Accounting books have been properly maintained in The Board also appreciates the dedicated services of
the Bank.
Directors’ Report
the Senior Management Team, all Executives and other
c) Appropriate accounting policies have been employees of the Bank.
consistently applied in preparation of the financial
statements and that the accounting estimates are The Board offers thanks to the Government of Bangladesh,
based on reasonable and prudent judgment. Bangladesh Bank, Bangladesh Securities and Exchange
Commission, Registrar of Joint Stock Companies and
d) Bangladesh Accounting Standards (BAS)/Bangladesh Firms, Dhaka Stock Exchange Limited and Chittagong
Financial Reporting Standards (BFRS) as applicable in Stock Exchange Limited for their appreciable support and
Bangladesh have been followed except as outlined in co-operation to the Bank.
Note No. 2.1 in the financial statements.
The Board also expresses its appreciation to Rahman
e) The system of internal control in the Bank is sound Rahman Huq, the Auditors of the Bank, for their efforts for
in design and has been effectively implemented and timely completion of Audit. The Board of Directors also
monitored. thanks both the print and electronic media personnel for
giving media coverage to Bank’s different activities and
f ) There are no doubts upon the Bank’s ability to
events.
continue as a going concern.
Finally, the Board thanks the respected Shareholders

33. Declaration of Dividend
and assures them that it will continue to add to the
The Bank gives utmost importance on the principles of Shareholders’ wealth through further strengthening and
sharing good achievements with respected shareholders development of the Bank in which they have placed their
of the Bank. Accordingly, the Board of Directors in its 511th trust and confidence.
meeting held on April 08, 2017 recommended 20 percent
Cash Dividend for distribution amongst the shareholders
for the year-2016. Sincerely
34. Corporate Social Responsibilities On behalf of the Board of Directors.

Southeast Bank manages its business in a responsible way
and contributes to the society and environment in which
it operates. A report on Corporate Social Responsibility of
the Bank in 2016 is included in this Annual Report.
Alamgir Kabir, FCA
35. Contribution to National Exchequer Chairman
During the fiscal year 2015-2016, Southeast Bank’s

contribution to the National Exchequer was BDT.1,644.59
million. The bank’s contributions to the National Exchequer
for the last five (5) years are given below:
Year BDT in million

2015 1,644.59
2014 2,519.31
2013 2,573.77
2012 2,069.85
2011 1,802.80
Corporate
Governance
Our Corporate Governance
framework is a set of
transparent rules,
requirements and systems
practiced by us with a
high degree of integrity
to meet the
expectations that
the stakeholders
and the society
place on us.
CORPORATE GOVERNANCE
Statement of Board of Directors on the Responsibility to Establish

82
Appropriate System of Internal Control
Statement of Board of Directors on
84
Adequacy of Internal Control System
Corporate Governance Report 85
Managing Director’s and CFO’s Declaration
99
on Integrity of Financial Statements to the Board
Management Review, Responsibility and Evaluation 100
Compliance Report on BSEC’s Notification on Corporate Governance 128
Certificate on Compliance of Corporate Governance 134
Compliance of Bangladesh Bank’s Guidelines on Corporate Governance 135
Credit Rating 143
Audit Committee (Composition, Role, Meetings, Attendance etc.)
144
and Internal Control
Report of the Risk Management Committee 149
Evaluation of the Quarterly Financials by the
151
Audit Committee and by the Board
Report of the Bank’s Shariah Supervisory Committee 152
Capital Plan 154
Statement of Non Performing Loan 156
Statement of Board of Directors on

Adequacy of Internal Control System
The Board of Directors is actively concerned with sound Internal
Controls and Risk Management Practices for good corporate
governance. In order to support the maintenance of a strong
Internal Control Environment of Southeast Bank, the Board has
established an organizational structure with clearly defined lines
of responsibility, authority, limits and accountability aligned to
business and operational requirements.
According to the instructions/guidelines of Bangladesh that consist of six core factors, i.e. Credit Risks; Asset and
Bank (Central Bank), the Board has delegated specific Liability/Balance Sheet Risks; Foreign Exchange Risks;
responsibilities to 03 (three) subcommittees (Executive Internal Control and Compliance Risks; Money Laundering
Committee, Audit Committee and Risk Management Risks and Information and Communication Technology
Committee). These committees have the authority to Risk. With this end in view, it has established 03 (three) lines
examine particular issues and report back to the Board of defense concept - risk taking units, risk control units and
with their recommendations. These committees also internal audit. The risk taking units are responsible for the
assist the Board to perform its oversight functions in day to day management of risks inherent in their business
ensuring the effectiveness of daily operations and that the activities while the risk control units are responsible
operations of Southeast Bank are in accordance with the for setting the risk management framework and
corporate objectives/goals, strategies, applicable laws and developing tools and methodologies. The internal audit,
regulations, the annual budget as well as the policies and complementing these, provides independent assurance
business directions that have been approved. of effectiveness of the risk management approach.
The Board of Southeast Bank has adopted necessary/ An effective management information system is in place
required written policies and process guidelines including to support the organizational and procedural controls in
Management Control Policy (MCP) as well as Internal order to managing the exposure soundly and prudently
Control Policy (ICP). These Policies and process guidelines to mitigate it’s risks. The management of the Group assists
are updated as and when required to ensure relevance the Board in the implementation of the policies and
and compliance with current/applicable laws and procedures adopted by the Board and works actively to
regulations and are made available to all employees. The manage and operate the Group in a sound and prudent
MCP outlines the specific responsibilities of the various manner.
parties, e.g. the Line Management, Internal Control Team,
Audit Committee etc pertaining to Internal Control for An independent audit mechanism has been established
Southeast Bank Ltd. The ICP creates awareness among all for undertaking regular reviews of operations of the Bank.
the employees regarding internal control components Through these reviews, the adequacy and efficiency
and the basic control policy of Southeast Bank. of financial and operating controls are examined and
evaluated as well as significance of risks and impacts of
The Board of Southeast Bank, in accordance with the non-compliance on the Bank are highlighted. Various
guidance notes of Bangladesh Bank, has established an Internal Control Cycles or pre-defined Procedures, i.e
effective and integrated risk management framework Compliance Review Work Program (e.g, Departmental
Control Function Checklist, Quarterly Operation Report, Committee of the Board has active oversight on internal
Loan Documentation Checklist, MANCOM Certificate, audit’s independence, scope of work and resources. It also
Annual Summary Report, Annual Health Report, etc) have reviews the functions of Internal Control and Compliance,
also been established to ensure efficient and effective particularly the scope of the annual audit plan and
internal control. frequency of the internal audit activities.
At the beginning of each calendar year, a risk based The Board is satisfied that the System of Internal Control
Corporate governance
Audit/Inspection Plan on different Branches/ Divisions/ of the Group is effective and adequate and provide a
Units is approved by the Audit Committee of the Board reasonable assurance in achieving objectives/goals of the
and Internal Audits/Inspections are carried out on the Group with the following standards:
basis of the approved plan. All the reports of Internal
Auditors, External Auditors and Regulatory Authorities reliability of the financial information;
with major deficiencies are discussed in the meetings of effectiveness and efficiency of operations;
the Management and Audit Committee of the Board. The
compliance with applicable laws and regulations;
purpose of these meetings is to monitor the functioning
of the internal controls during the financial year, so that adherence to management policies;
necessary action can be taken where necessary. The safeguarding Bank’s Assets;
management also follows up and reviews the status of prevention and detection of fraud and errors;
actions taken on the recommendations provided by accuracy and completeness of the accounting
the Internal Auditors, External Auditors and Regulatory
records; etc.
Authorities.
However, the reality is that human error is always an
The Board of Directors, through its Audit Committee,
element in decision-making and the cost always has to
reviews the effectiveness of the system of Internal Control
be balanced against the benefits when accepting risks
and Compliance annually. In support of this review,
and implementing controls. Even minor mistakes due to
the management conducts an Internal Control and
human error may have significant effects, employees may
Compliance Certification Process. The Audit Committee of
conspire to circumvent internal controls and responsible
the Board also reviews the actions taken on internal control
managers may ignore internal agreements.
issues identified in the reports submitted by the Internal
Auditors, External Auditors and Regulatory Authorities
and further evaluates the effectiveness and adequacy
of the Internal Control System of the Group. The Audit
Committee, where applicable, provides recommendations
to improve on the effectiveness of risk management, Alamgir Kabir, FCA
control and governance process of the Bank. The Audit Chairman
Statement of Board of Directors on the

Responsibility to Establish Appropriate
System of Internal Control
According to the Section 15(Kha) and 15(Ga) of Bank Company
(amended) Act 2013, the Board of Directors of a Bank is responsible
for setting up policies and implementation thereof in the Bank.
The Board is also responsible for risk management, internal control,
internal audit and compliance of the Bank. The Board is required to
ensure effective internal audit and control system in the Bank.
An essential part of the Board’s responsibilities is to review but not absolute assurance, in achieving the policies, goals
the effectiveness of internal control while management and objectives of the Bank. The Board of Southeast Bank
is accountable to the Board for developing, operating also believes that a strong system of internal control has
and monitoring the system of internal control and for significant role over the reliability of financial information/
providing assurance to the Board that it has done so. reporting; effectiveness and efficiency of operations;
compliance with applicable laws, regulations and internal
The Board of Southeast Bank acknowledges its overall policies, safeguarding its assets; early detection of fraud-
responsibility for maintaining sound, adequate and forgery and protecting the Bank from the financial loss.
effective internal control systems to safeguard the assets
of the Bank and interest of the shareholders. The Board The Board of Southeast Bank has established an ongoing
of Southeast Bank recognizes that achievement of the process for identifying, evaluating, monitoring and
objectives of banking business depends on the success managing the significant risks faced by the Bank. All the
of risk management. As such the internal control systems processes and guidelines of the Bank are reviewed and
are primarily designed with a view to highlighting any updated time to time to suit the changes in business
deviations from the limits and indicators which comprise environment or regulatory guidelines.
the risk appetite of the Bank. The Board is of the view that
the internal control framework is designed to manage
the risks of Southeast Bank within an acceptable level/risk
profile rather than eliminate the risk of failure to achieve
the policies, goals and objectives of the Bank. The system Alamgir Kabir, FCA
of internal controls can therefore only provide reasonable Chairman
Corporate Governance
Report
Conceptual Framework
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 (Amendment) Act-2013. It also complies with the directives and guidelines issued
from time to time by Bangladesh Bank and Bangladesh Securities and Exchange Commission. The Bank is responsibly
managed and supervised in fulfillment of the objectives of adding value to the shareholders’ wealth and contributing to
the national economy. Our Corporate Governance principles serve the goal of strengthening and consolidating company
position with sustained 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. The Bank’s corporate governance structure comprises
of the Shareholders, the Board, Bank Management, Regulatory Authorities, Independent External Auditors and the
Employees.
Our Stakeholders
Our Stakeholders are individuals or groups that have an interest, claim or stake in the Company, in what we do and in how
well we perform. All our Stakeholders are in an exchange relationship with us. Each of them supplies us with important
resources and in exchange each expects that its interest is satisfied.
Board of Directors, Chairman and CEO
Policy on Appointment of Directors
Southeast Bank complies with the requirement of Bangladesh Bank and Bangladesh Securities and Exchange Commission
(BSEC) for appointment of Directors. As per regulations, all Directors, except nominated, independent or alternate director,
maintain at least 2% shares in the Bank.
As per the Companies Act 1994, one-third of the Directors retire and if eligible, place themselves for reappointment which
is approved in the Annual General Meeting.
As per the Bank Company Act 1991 (As amended in 2013), the Directors are appointed for a term of three years which can
be extended by one term only subject to approval by the shareholders in the Annual General Meeting (AGM).
The term of appointment for an Independent Director is also three years which can be extended by one term subject to
approval by the Shareholders in the AGM. 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 also appointed 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.
Ownership Composition
As on 31 December 2016, the Directors of Southeast Bank Limited held 15.33 percent of total shares whereas Financial
Institutions and General Public are holding 35.97 percent and 48.70 percent shares respectively.
31-12-2016 31-12-2015
Sl.
Composition No. of Shares % to Total No. of Shares % to Total
No.
Held Shares Held Shares
1 Directors 140,573,157 15.33% 168,011,868 18.32%
2 General Public 446,527,386 48.70% 467,707,676 51.01%
3 Financial Institutions 329,849,633 35.97% 281,230,632 30.67%
Total 916,950,176 100.00% 916,950,176 100.00%
Pattern of Shareholdings
i) Shares held by Parent/Subsidiary/Associated Companies and other related Parties

NIL
ii) Ownership of Company’s Securities by the Members of Board of Directors.
Sl. Remuneration/ Remuneration

Name Designation
No. Meeting Drawn
1. Alamgir Kabir, FCA 19,944,672 199,446,720.00 2.18%
2. M. A. Kashem 20,307,060 203,070,600.00 2.21%
3. Azim Uddin Ahmed 25,490,735 254,907,350.00 2.78%
4. Duluma Ahmed 19,082,742 190,827,420.00 2.08%
5. Jusna Ara Kashem 18,339,525 183,395,250.00 2.00%
6. Md. Akikur Rahman 18,443,731 184,437,310.00 2.01%
7. Rehana Rahman 18,844,145 188,441,450.00 2.06%
Sirat Monira,
8. 120,547 1,205,470.00 0.01%
Representing Public Shareholders
9. - - -
10. - - -
M. Kamal Hossain
11. - - -
Managing Director (Current Charge)
Total: 140,573,157 1,405,731,570.00 15.33%
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
Designation
No. on 31.12.2016
a) M. Kamal Hossain Nil
1 Managing Director (Current Charge)
b) Spouse / Minor Children of Managing Director Nil
a) Muhammad Shahjahan Nil
2 Company Secretary
b) Spouse / Minor Children of Company Secretary Nil
a) Mohammad Aminul Haque, FCA, ACMA (CIMA), CGMA Nil
3 Chief Financial Officer
b) Spouse / Minor Children of Chief Financial Officer Nil
a) Haradhan Banik Nil
4 Head of Internal Control and Compliance
b) Spouse / Minor Children of the Head of Internal Control and Compliance Nil
iv) Shares held by top five salaried Executives in the regular services of the Bank.
Shareholdings as on
Sl. No. Designation
31.12.2016
1. S. M. Mainuddin Chowdhury Nil
2. Ziaus Shams Chowdhury Nil
Senior Executive Vice President
3. Pritish Kumar Sarker Nil
4. Nasim Sekander Nil
5. Haradhan Banik Nil
v) List of Shareholders holdings 10% and above shares in the Paid-Up-Capital of the Bank.
NIL
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 following three (3) Directors will retire in the 22nd Annual General Meeting.
i) M. A. Kashem
ii) Rehana Rahman
iii) Sirat Monira
The brief resume of the above Directors in compliance of Notification No.SEC/CMRRCD/2006-158/134/Admin/44 dated
07 August, 2012 of Bangladesh Securities and Exchange Commission (BSEC) is appended in the Directors’ Profile in the
Annual Report. Other information about them as required as per the aforesaid Notification is given below.
Name Expertise Memberships Directors in

M. A. Kashem Banking Activities Executive Committee Rose Corner (Pvt.) Limited
Rehana Rahman Banking Activities Audit Committee Bengal Tradeways Limited
Sirat Monira Banking Activities - -
Non-Executive Directors
The Managing Director is the only Executive Director on the Board of Directors of the Bank. All other Directors including
the Chairman are the Non-Executive Directors.
Independent Directors
In compliance with the Corporate Governance Guidelines of Bangladesh Securities and Exchange Commission (BSEC) and
as per Section-15 of Bank Company (Amendment) Act-2013 regarding appointment of New Directors and the guidelines
given by Bangladesh Bank in BRPD Circular No.11 dated 27 October, 2013, the Bank appointed 2 (two) Independent
Directors observing all required formalities.
Independent Directors’ Independence
As per existing rules and regulations, Independent Directors are required not to have any significant relationship, whether
pecuniary or otherwise, with the Bank, its top management and the Board. 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 requirements relating to appointment of Independent Directors and seeks prior approval from Bangladesh
Securities and Exchange Commission and Bangladesh Bank before appointing a person as an Independent Director.
Chairman’s Independence
As per the requirements of Notification on Corporate Governance 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-Current Charge)
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,
procedures are observed to ensure that the independence of the Chairman is not hampered.
Chairman and the CEO
The Chairman is independent of the CEO, and this has been in practice since inception of the Bank. This also complies
with clause 1.4 of the BSEC’s Notification on Corporate Governance Guidelines.
Independence of the Non-Executive Directors
The Non-Executive Directors enjoy full freedom in discharging their responsibilities. They sincerely try to attend all
meetings of the Board and its any Committee of which they are members. They actively participate in discussion on any
agenda for a well-thought-out decision.
Role and Responsibilities of the Board of Directors
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.
Role 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) purchase or acquire 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.
Role of the Chairman
The Chairman of the Bank is elected from amongst the Directors after every Annual General Meeting in obedience to the
Articles of Association of the Bank. The functional areas of the Chairman and that of the Managing Director are sharply
bifurcated within the rules of Bangladesh Bank. But they work in cohesion for the disciplined operation and growth of
the Bank.
Responsibilities of the Chairman of the Board
The chairman discharges his responsibilities within the purview of the provisions contained in BRPD Circular No.11 dated
27 October, 2013. His main responsibilities 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 speak about the performance of the Bank and make a critical
analysis of the performance of the Board of Directors. The Chairman replies to their queries made in the meeting. Their
constructive suggestions are noted down and implemented for qualitative improvement of the Bank.
As per our existing policy, it is disclosed that no formal annual appraisal of the Board takes place in the Bank.
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 of the Bank Companies Act, 1991 and/or other relevant laws and regulations in the
discharge of his functions in the bank.
C. The CEO shall include information on violation of any law, rules, regulation including Bank Company Act, 1991 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 and/
or 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
the 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 the Board, sustainable growth in investment and
revenue earning for the Bank, gradual reduction the NPL ratio 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.
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 well to the path of progress. The latest legislations on the financial sector and directives of the regulatory
bodies are made available to them for their instant information in order that they can discharge their responsibilities
effectively. They also attend various seminars and symposiums mainly on corporate governance organized by different
professional bodies.
Corporate Governance Training and its Objectives
Corporate Governance has at its backbone a set of transparent relationships among the institution’s Management, Board,
Shareholders and other stakeholders. With this in view, Southeast Bank has organized a special training on “Orientation
for Potential Managers” where Heads of Branches designated from VP to EVP and a number of Heads of Departments of
Head Office participated.
The main topics of the training were:
1. Corporate Governance in Banks-International best practices.

2. Banking Company Act, 1991 and stipulations on corporate governance and
3. Corporate Governance Regulations for banks in Bangladesh
A day long workshop on Corporate Governance was organized in 2016 to create a strong risk management culture. The
main objectives of these training programs are:
i. To determine the best practices suited to the organization through structured assessment.
ii. To develop broad-spectrum insights into best practices to understand how they improve coherence in business
directions and strategies, drive corporate responsibilities and improve company accountability for stakeholders’
confidence.
iii. To shed light on specific strategies to mitigate risk and maximize opportunities by paving the skills, tools and
frameworks for action plans to address challenges and boost Board’s performance.
iv. To help the Board members develop the right strategies for change management and create advance plans for
seamless change in order to identify internal and external opportunities and challenges, manage change or implement
new approaches.
v. To drive positive Board culture such as skills and leadership style.
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 is a Ph.D in Economics and another Independent Director is a B.A (Hons) and M.A in Economies.
He is also a renowned expert in financial journalism. They have enough knowledge and expertise in the field of Accounting
and Finance. Most of the other Directors are successful entrepreneurs and professionals. They are well conversant in
business, economics and administration.
Directors’ Report in Compliance with Best Practices on Corporate Governance
The status of compliance with corporate governance guidelines of Bangladesh Bank and Bangladesh Securities and
Exchange Commission has been given hereafter. Syful Shamsul Alam & Co., Chartered Accountants, duly certified the
Bank’s Compliance Status which is re-produced in a page hereafter.
Board meetings and attendance
Presence of Directors in the
Sl. Meetings, During their Tenure Remuneration/ Remuneration
Name Designation
No. No. of Meeting Drawn
Present Absent
Meetings
1 Alamgir Kabir, FCA Chairman 23 23 - 8000 X 23 BDT 184.000.00
Vice Chairman
(Ceased to be
2 Ragib Ali Director on and 23 10 13 8000 X 10 BDT 80,000.00
from March 08,
2017)
3 M.A. Kashem Director 23 18 5 8000 X 18 BDT 144,000.00
4 Azim Uddin Ahmed Director 23 20 3 8000 X 20 BDT 160,000.00
5 Duluma Ahmed Director 23 21 2 8000 X 21 BDT 168,000.00
6 Jusna Ara Kashem Director 23 19 4 8000 X 19 BDT 152,000.00
7 Md. Akikur Rahman Director 23 13 10 8000 X 13 BDT 104,000.00
8 Rehana Rahman Director 23 21 2 8000 X 21 BDT 168,000.00
9 Sirat Monira Director 23 20 3 8000 X 20 BDT 160,000.00
Director
Abdul Hye, Representing (Ceased to be
10 by Karnafuli Tea Co. Director on and 23 3 20 8000 X 3 BDT 24,000.00
Limited from March 08,
2017)
Independent
11 A.H.M. Moazzem Hossain 23 23 - 8000 X 23 BDT 184.000.00
Director
Independent
Dr. Quazi Mesbahuddin Director
12 23 16 - 8000 X 16 BDT 128,000.00
Ahmed (Appointed on
April 11, 2016)
Independent
Director
13 Dr. Zaidi Sattar (Ceased to be 23 1 - 8000 X 1 BDT 8,000.00
Director on April
11, 2016)
Managing
Director
14. Shahid Hossain (Resignation 23 23 - - -
accepted on
March 27, 2017)
Note: Mr. Ragib Ali could not attend 13 meetings because of his personal issues.
Related Party Transactions
During the year 2016, the Bank concluded 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.
Name of Organization Relationship Nature of transaction

Asia Insurance Ltd. Common Director Insurance Coverage
Share Capital
Southeast Bank Capital Services Ltd. Subsidiary Company
Invest on Loan
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: In compliance with the provisions contained in BRPD Circular No.11 dated 27 October, 2013, the Board of
Directors re-constituted the Executive Committee comprising 4 (four) members. To comply 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 resolution of the Executive Committee are ratified by the Board of Directors. The minutes of the Executive Committee
are sent to Bangladesh Bank for their review.
Attendance of members of the Executive Committee in meetings

Meetings, During their Tenure
Sl. Remuneration/ Remuneration
Name Designation
No. Meeting Drawn
No. of
Present Absent
Meetings
1 Alamgir Kabir, FCA Chairman 8 8 - 8000 X 8 BDT 64,000.00
Member (Ceased
to be Director on
2 Ragib Ali 8 2 6 8000 X 2 BDT 16,000.00
and from March
08, 2017)
3 M.A. Kashem Member 8 6 2 8000 X 6 BDT 48,000.00
4 Azim Uddin Ahmed Member 8 8 - 8000 X 8 BDT 64,000.00
Member
Shahid Hossain (Resignation
5 8 8 - - -
Managing Director accepted on
March 27, 2017
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. 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.
Chairman is an independent Non-Executive Director
The Chairman of the Audit Committee is a BSEC approved independent non-executive director. 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 MA in Economics from Dhaka University. He acted as the Director of Janata Bank
Limited for 5 years. He is the Editor of financial daily The Financial Express.
All members are suitably qualified
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.
Conflict of Interest
The Code of Ethics and Business Conduct require all employees to avoid situations where their personal interests conflict,
or may appear to conflict with those of the Bank. Employees are advised to take particular care when they are responsible
for dealing with customers, business associaties, agents on behalf of the Bank. Any failure to disclose a conflict of interest
leads to a disciplinary action.
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.
Recommendation for appointment of External Auditors
The Audit Committee does an extensive review on the audit work done by the 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/reappointment of auditors for the next year.
Attendance of members of the Audit Committee in meetings

Name Designation
Present Absent
Meetings
1 A.H.M. Moazzem Hossain Chairman 6 6 - 8000 X 6 BDT 48,000.00
2 Duluma Ahmed Member 6 5 1 8000 X 5 BDT 40,000.00
3 Jusna Ara Kashem Member 6 5 1 8000 X 5 BDT 40,000.00
4 Rehana Rahman Member 6 5 1 8000 X 5 BDT 40,000.00
Dr. Quazi Mesbahuddin
5 Member 6 4 2 8000 X 4 BDT 32,000.00
Ahmed
Sirat Munira
6 (Ceased to be Member from Member 6 1 - 8000 X 1 BDT 8,000.00
April 11, 2016)
Appointment of External Auditors
M/S Rahman Rahman Huq ‘A’ ranking Audit Firm has been appointed as the External Auditors of the Bank in the 21st
Annual General Meeting held on April11, 2016 for the first term. They are eligible to re-appointment as per directives of
Bangladesh Bank in the ensuing 22nd Annual General Meeting. The External Auditors enjoy full freedom in their audit of
accounts of the Bank and reporting to the shareholders. The competence and performance of the External Auditors are
evaluated by the Bank’s Board Audit Committee.
Services not Provided by External Auditors
M/S Rahman Rahman Huq are the external auditors of the Bank. The services as are specifically barred in the Securities and
Exchange Commission Notification No.SEC/CMRRCD/2006-158/134/Admin/44 dated 07 August, 2012 are not obtained
from the external auditors.
Highlights on Central Bank Inspection
In the year 2016, 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 inspection Teams.
iii. Risk Management Committee
Composition: A 4-member Risk Management Committee was constituted by the Board in its 486th meeting held on April
11, 2016. A report of the Risk Management Committee is included in this Annual Report.
Attendance of members of the Risk Management Committee

Name Designation
Present Absent
Meetings
1 Alamgir Kabir, FCA Chairman 4 4 - 8000 X 4 BDT 32,000.00
Ragib Ali
2 (Ceased to be Director on Member 4 1 3 8000 X 1 BDT 8,000.00
and from March 08, 2017)
3 M.A. Kashem Member 4 4 - 8000 X 4 BDT 32,000.00
4 Azim Uddin Ahmed Member 4 4 - 8000 X 4 BDT 32,000.00
5 A.H.M. Moazzem Hossain Member 4 4 - 8000 X 4 BDT 32,000.00
• Mr. Ragib Ali could not attend three meeting because of his personal issues.
Internal Control and Risk Management
Internal Control
The Board of Directors of Southeast Bank Group ensures maintenance of a sound system of internal control to safeguard
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 at in this report.
Identification of risk to which SEBL is exposed internally and externally
The risks 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. 149 of this Annual Report.
Vision, Mission and Strategy approved by the Board
Vision, Mission of the Bank
The vision, missions statement 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.
Business objectives and areas of business focus
The Board always sets business objectives and areas for focus in consistency with the market. The latest business objectives
and areas of business focus can be found in the “Strategic Priorities Statement” of the Bank at page no. 10 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. 9.
Ethics and Compliance

Code of Conduct for Directors
The Group Chairman’s Report contains the issue.
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 Regulation 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 Committees and their responsibilities
Ensuring effective corporate governance is one of the top priorities of the Bank management for realizing the objectives
advocated in our management philosophy. A clearly defined organizational structure with definite lines of responsibility
and delegation of powers to different echelon of the management are in place in the Bank. To streamline functions, the
following Committees are actively working in the Bank:
Management Committee (MANCOM)
A Management Committee (MANCOM) is working in the Bank. It is composed of senior members of the Management
Team. Its main functions are to address general issues of importance, introduce new products, frame strategies for
improvement of operations, evaluate different types of risks, monitor internal control structure and to review effectiveness
of the internal control system. To streamline the management functions further and to quicken decision making process
based on best analysis and appraisal, sub-committees of the Management Committee for the following issues were
constituted:
(a) Product Development and Marketing

(b) Strategic Planning Issues and
(c) Corporate Governance and Administrative Issues.
The following Sub-Committees of MANCOM are also functioning in the Bank:
i) Head Office Credit Review Committee (HOCRC)
Two Credit Review Committees, one headed by the Additional Managing Director (Corporate Banking) of the Bank and
the other headed by the Senior Executive Vice President, Credit Risk Management Division, have been constituted for
appraisal and quick disposal of credit proposals. Credit proposals that do not merit considerations are declined. Credit
proposals that merit considerations in the opinion of the Credit Review Committee are presented before the competent
authority as per the delegation of business power for approval.
ii) Asset Liability Management Committee (ALCO)
Asset Liability Management Committee consists of the Managing Director, Additional Managing Directors, the Deputy
Managing Directors and strategically important Divisional Heads of Head Office.
iii) Central Compliance Unit
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 Unit (CCU) has been working on the issues in the Bank.
iv) Integrity Committee
As instructed by Bangladesh Bank, a 6-Member Integrity Committee of the Bank headed by a Additional Managing
Director was constituted on November 18, 2013. One Senior 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 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 Integrity Strategy, etc.
v) Committee for Evaluation of the Effectiveness of Management Reporting System
As advised by Bangladesh Bank, a 9- Member Committee for Evaluation of Management Reporting System (MRS) has
been constituted in the Bank with a Additional Managing Director as its head.
vi) 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.
vii) 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.
viii) Taskforce for Monitoring and Recovery of Re-Scheduled and Re-Structured Loans
A 8-Member Taskforce for Monitoring and Recovery of Re-Scheduled and Re-Structured Loans are working in the Bank.
The Taskforce frequently sits in meetings.
ix) Taskforce 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 over all reputation of the Bank. Therefore, it was essential to strengthen recovery drive to
downsize the non-performing/classified loans and written-off loans through cash recovery. From this point of view two
taskforces with high level executives / officers were formed / reformed at Head Office in the year 2012 – both are headed
by two Additional Managing Directors of the Bank.
The taskforces review the recovery progress of classified and written-off loans on monthly basis and provide necessary
guidelines to the branches accordingly. The taskforces 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. The taskforces 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 taskforces visit clients factory, office, security / mortgaged properties as and when needed. They also place their
observations and recommendations before the competent authority for their guidance and next courses of action.
x) IT Steering Committee
An IT Steering Committee has been formed in 2012 comprising 06 (six) senior officials of the Bank for overall supervision
of ICT Operations and ICT Projects Management.
Supervisors’ Role
In order to supervise and monitor the performance of the Branches, a supervisory system for the Branches has been
prevailing in the Bank. The Branches are supervised by a group of executives working at Head Office. The Supervisors of
the Branches monitor the activities of the Branches through regular contacts with Heads of Branches and evaluating their
operational performance through periodic field visits. They work as focal points between Head Office and Branches to
resolve functional problems of the Branches and provide proper guidelines in preparing business strategy and achieving
budgetary goals.
The meetings of the Supervisors of the Branches with top management are held every two months. The performance of
the supervisors is also evaluated in the meetings which are presided over by the Managing Director.
Remuneration Committee and Activities
The Bank cannot have more than three Committees of the Board of Directors as per law and rules of Bangladesh. For
obvious reasons, activities relating to remuneration are done by the Board itself. However, the Management Committee
of the Bank assists in the formulation of remuneration related policies and practices in alignment of Bank’s short and long-
term business objectives.
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.
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.
Human Capital
The detailed discussion on Bank’s Human Capital has been presented at Page no. 191 of this Annual Report.
Communication to Shareholders and Stakeholders, and Company’s policy/strategy to facilitate effective

communication with shareholders and other stakeholders
Southeast Bank ensures that all shareholders are notified at least 14 days before the AGM so that all shareholders may
attend it. Also all other types of accounts (Quarterly and Half yearly) or information are updated on the website and
notified to all stakeholders on a duly basis. The Bank tries to maintain liaison with all major shareholders as far as possible
and ensures that all stakeholders are informed of the bank’s activities on a routine basis. SEBL also holds dialogue with the
shareholders as far as possible and practicable for the progress and wellbeing of the Bank.
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 provides copies of Annual Reports 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 prospects at the AGM. The Board also structures these meetings so
that shareholders can vote on each agenda by proposing resolutions.
Company’s policy on ensuring participation of shareholders in the Annual General Meeting and providing
reasonable opportunity for the shareholder participation in the AGM
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 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 may 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 newspapers in English and Bangla and are sent to
the stock exchanges and BSEC.
SEBL ensures effective communication with the shareholders and encourages shareholder participation at the AGM. The
good number of shareholders that 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. The Bank has a strong stake in the society through investments and projects which
takes its banking role one step further. Southeast Bank supports its clients to be conscious about environmental issues.
SEBL persuades its customers to avail facilities for renewable energy generation and other environmentally beneficial
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.
Sustainable Financing
The Risk Management Committee of the Board of Directors supervises and takes decision in principle and provide strategic
directions regarding sustainable banking and sustainable finance (environment friendly banking) of the Bank. The
Committee also monitors that green financing activities of the Bank are taking place to achieve sustainable development
goals as per guidelines of Bangladesh Bank.
Green Award
As part of environmental and social obligation, SEBL wants to inspire the 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.
Dr. Mohammed Farashuddin, Chairman, Southeast Bank-

The Financial Express-Policy Research Institute (SEBL-FE-
PRI) Green Award Trust, Fazle Kabir, Governor, Bangladesh
Bank, and Chief Guest of the ceremony, Alamgir Kabir,
FCA, Chairman, Southeast Bank Limited along with
other members of the Trust are seen in the Green Award
distribution ceremony.
Managing Director’s and CFO’s

Declaration on Integrity of Financial
Statements to the Board
Date: March 29, 2017
The Board of Directors
Eunoos Trade Centre
52-53 Dilkusha C/A
Dhaka-1000
Sub: Managing Director’s/CFO’s Declaration to the Board regarding integrity of financial statements.
We submit the following in our capacity of the Managing Director (CEO) and the Chief Financial Officer (CFO) of the Bank.
In accordance with the notification of Bangladesh Securities and Exchange Commission No. SEC/CMRRCD/2006-158/134/
Admin/44 dated 7 August, 2012, we solemnly declare that:
i) We have reviewed the financial statements for the year 2016 and to the best of our knowledge and belief:
a) These financial statements do not contain any materially untrue statement or omit any material fact or contain
statements that might be misleading;
b) These statements together present a true and fair picture of the company’s affairs and are in compliance with existing
accounting standards and applicable laws.
ii) To the best of our knowledge and belief, there is no transaction entered into the books of the bank during the year
2016 which is fraudulent, illegal or in violation of the Bank’s code of conduct.
Mohammad Aminul Haque, FCA, ACMA (CIMA), CGMA M. Kamal Hossain

Chief Financial Officer Managing Director
(Current Charge)
Management Review, Responsibility

and Evaluation
Corporate Banking
The Corporate Banking Division of Southeast Bank is credit approval process, suitable credit administration,
engaged in planning, developing and managing the measurement and monitoring process and adequate
Bank’s corporate, commercial and institutional businesses control over credit risk.
to ensure desired profitability and sustained growth in line
with the Bank’s strategic plans, credit policies and business Southeast Bank sets specific industry-wise lending caps
objectives. considering the existing concentration, risk appetite,
future growth opportunities etc. Lending caps discourage
Southeast Bank finances its corporate clients concentration of Bank’s global loan portfolio into one
generally in the following ways – particular sector and encourage diversification of the
total loan in various sectors with a view to minimizing
Export Finance Work Order Finance concentration risk and to maximize the future growth of
Project Finance Real Estate Finance the Bank.
Trade Finance Syndicated Finance On the other hand, considering the cyclical aspects,
Working Capital Finance economic condition, seasonal fluctuation, political
environment, related risk factors as well as growth
Besides, Southeast Bank has also set up a Cash appetite in each sector, Corporate financing activities
Management Services Unit which mainly looks after follows a prudent sector wise budgetary allocation as per
mobilization of low-cost/ no-cost funds of the corporate annual credit plan.
houses by providing various tailor made services to them.
In the coming years, the Bank will exert enhanced effort Based on the policy guidelines given by the Board of
for more dynamism in such cash management activities. Directors and catering to the ongoing requirements of the
entrepreneurs and the economy, the management of the
In the year 2016, Southeast Bank’s strategic priorities Bank periodically updates the policies and strategies in
were growth and profitability whilst maintaining asset line with policy-parameters of the Central Bank with due
quality and strengthening the foundations for future approval of the Board of Directors.
growth. During the period, the Bank continued to provide
comprehensive and innovative banking solutions to its Export Finance
corporate clients including financial institutions.
The export sector in Bangladesh has grown up
Maximization of profitability through promotion of significantly making a major contribution to the national
lending products and appropriate loan pricing is the economy and is playing an important role in employment
primary focus of the Bank’s Corporate Banking Division generation and foreign currency earnings. In the fiscal
(CBD). Diversification of credit portfolio in promising and year 2015-16, Bangladesh exported goods worth USD
productive sectors is also one of the prime objectives. The 34.25 billion where the contribution of RMG sector is 82
strategy of CBD is to maintain a prudent mix of various client percent. Southeast Bank has been financing in the export
segments and products, economic sectors, geographical sector on priority basis and at present, a sizeable portion
locations, currency and maturity commensurate with of Bank’s total loan portfolio belongs to around 250 export
economic and business trend, life cycle of the products, clients. During the year 2016, the Bank has handled export
demand-supply gap, social obligation etc. business to the tune of USD 1,862.61 million.
The overall credit policy of Southeast Bank has already A dedicated unit named as ‘RMG, Textile and Export
been devised in accordance with Bangladesh Bank’s Financing Unit’ at Head Office has been handling the
guidelines to ensure effective credit risk management and credit portfolio of export-oriented clients. This clientbase
compliance with the regulatory framework. Corporate includes entrepreneurs in RMG - both Woven & Knit,
Banking activities of Southeast Bank are carried out Sweater, Textiles, Home Textiles, Spinning, RMG accessories,
addressing appropriate credit risk environment, sound Jute and Jute goods and Leather goods. Southeast Bank
extends both project finance and working capital finance Project Finance
to its export clients.
Southeast Bank provides Project Finance for setting up
The teams working in export financing in Head Office and / BMRE of Manufacturing and Service Industries. Project
Branches not only conduct detailed and proper analysis Finance is generally provided in the form of Term Loan to
of the clients’ requirements but also ensure meticulous facilitate the client for procurement of fixed assets, such
compliance with Bank’s RMG /Export financing guidelines, as capital machinery, auxiliary machinery & equipment,
Export and Import policies, Foreign Exchange regulations, shed / building etc. Project Finance is usually followed by
Circulars of Bangladesh Bank and other prevailing rules Working Capital Finance to meet day to day operational
and regulations of the regulatory bodies. Periodic visits are expenses of the project so that the project can run
made to clients’ factories as a part of regular monitoring. profitably to repay the Bank’s dues.
Graphical presentation of year-wise performance of
Southeast Bank’s export business has been shown under A detailed appraisal called feasibility study is carried out
“Sustainability Appraisal and Integrated Reporting”. before financing a project. The major aspects include
Technical Appraisal, Marketing Appraisal, Financial
Trade Finance Appraisal, Managerial Appraisal and Organizational
Appraisal. Working Capital assessment is also done for
A significant portion of the Bank’s credit portfolio is Working Capital Finance for the project to ensure smooth
distributed amongst trading sector. The portfolio is operation of the project.
diversified in commodity trading, construction and supply
Since inception, Southeast Bank has been an active partner
business, import financing, work order financing, stopgap
of the private sector in developing large and medium scale
funding, fixed asset procurement, bill purchase etc.
industries of the country. The Bank has financed setting up
This Trade Finance and General Credit unit of Corporate
of various industrial units in the areas of Spinning, Textile,
Banking deals with various client segments for different
Garments, Pharmaceutical, Ceramic, Cement, Paper,
economic purposes in trading, manufacturing and service
Telecommunication, Steel etc. The Bank has also extended
sectors.
project finance to several service industries, such as hotel,
The Trade Finance and General Credit proposals are resort, hospital, educational institution, transport, filling
forwarded to Head Office by the Branches dispersed station etc. The Bank has also financed a good number of
all over the country. The credit applications are then real estate projects.
processed for approval by the Trade Finance and General
Credit unit complying with Bank’s credit policy and Work Order Finance
rules and regulations of Bangladesh Bank and other Southeast Bank provides financial support – both funded
regulatory authorities. During this process, the officials & non-funded credit facilities to the contractors to execute
meet the clients and visit their business premises for work orders issued by various departments/ divisions of
better understanding of their needs and for appropriate Government as well as different private organizations
evaluations of their proposals. This process of appraisal acceptable to the Bank. The Bank participated in several
is done for all types of credit facilities including Term mega projects of the Government by financing the
Loan, Overdraft, Time Loan, Letter of Credit, Loan against relevant contractors. In 2016, the Bank continued to
Trust Receipt, different types of Bank Guarantees such facilitating reputed contractors having sound track record
as Bid Bond, Performance Guarantee, Advance Payment for accomplishment of project of LGED, RHD, Railway, City
Guarantee, Security Bond, Customs Guarantee etc. Corporation and other organizations. Bank’s work order
financing products also cater to the need of contractors
In the year 2016, a good number of corporate clients have engaged in execution of supply orders.
availed Trade Finance and General Credit products from
the Bank. During this period, the Bank extended facilities Real Estate Finance
in the form of working capital credit as well as Term Loan
to both existing and new clients in the fields of food items, Real estate is an important sector for the development of
edible oil, other consumer items, food processing, rice an economy. Private sector real estate business has a huge
mill, feed mill, petroleum, chemical, printing & packaging, growth prospect in this densely-populated country since
publishing, ship breaking, construction materials, furniture a large segment of population belonging to middle and
& saw mill, IT, electronic goods, deemed export etc. growing middle class prefer to buy apartments. Despite
such potential opportunity, the housing sector has been the private sector and it was obviously a major challenge
facing setback since 2007/2008. The real estate sector had for Southeast Bank. The Bank has always focused on the
to suffer severe sales-decline during this period. There is a ‘quality’ aspect of credit with cautious augmentation of
long queue of unsold flats now. All the entrepreneurs in its credit portfolio. During the year 2016, the Bank exerted
this sector have been suffering from sluggish sales trend. continuous and all-out effort to attract more ‘quality’
customers to maintain the ongoing growth of loans &
Banks and other financial institutions seem to be reluctant advances and strengthen further its credit portfolio.
to finance the developers in the prevailing condition of
this sector. In the year 2016, Southeast Bank’s policy was In 2016 the Bank successfully accelerated growth of its
to maintain the portfolio in real estate sector in a good funded business. The accumulated loans and advances of
shape and side by side to finance new real estate projects the Bank stood at BDT 191,865.59 million as on 31.12.2016
having extraordinary potentials. The Bank is of the opinion compared to previous year’s position at BDT 168,878.46
that the full opportunity of the housing finance sector can million registering a growth of 13.61 percent over the
be realized only if all-out efforts are made to develop the previous year. The Bank was able to maintain a prudent
housing finance market on sustainable and sound footing. Loan Deposit Ratio throughout the year and it stood at
83.43 percent at the year end.
Syndicated Finance
Graphical presentation of year-wise trend of loans and
The main objective of the Syndicated finance and Club
the distribution of loans in respect of different sectors,
finance is to spread and share the credit risk among and
divisions, areas have been shown under “Sustainability
with all the participating Banks for specific investment.
Appraisal and Integrated Reporting”.
Southeast Bank is acting as one of the Lead Arrangers as
well as participants in the Banking industry of the country
Non-funded Business
for development/ operation of different projects under
Syndication/ Club Financing Arrangement. Some of the
The Bank registered a positive growth of 12.99 percent in
sectors financed by the Bank through Syndication are
import business in 2016 as compared to that of previous
textile, cement, steel, ceramic, refined sugar & oil, paper
year. The volume of import business payments (FOB) in
& pulp, aviation, hospital, University, telecom, power,
2016 was USD 2,179.29 million while the same in 2015
aviation etc.
was USD 1,928.76 million. The main import commodities
As a Lead Bank, Southeast Bank arranged a good number were capital machinery, raw cotton, scrap vessels, cement
of Syndication deal with total facility of around BDT clinkers, wheat, edible oil, petroleum products, yarn,
3500.00 million. On the other hand, Bank’s participation fabrics, garment accessories and other consumer items.
in different Syndicated/ Club finance arrangement was
around BDT 9000.00 million till 2016. In 2016 the Bank The export business of the Bank increased by 15.96
participated in a number of Syndication deal with total percent in 2016. In the year 2016 the volume of the Bank’s
approval of BDT 1150.00 million and USD 12.50 million in export business was USD 1,862.61 million which was USD
petroleum refinery and steel sectors. 1,606.20 million in the previous year. The main export
commodities were readymade garments, knitwear, frozen
Performance in 2016 food, shrimp, handicrafts, jute & jute goods etc.
Funded Business The Bank registered a positive growth in Bank Guarantee

business too. The volume of this business was BDT
In 2016, the Banking Industry of Bangladesh experienced 16,369.36 million in 2016 while it was BDT 15,245.19
a slow credit growth due to sluggish credit demand by million in 2015, posting a growth of 7.37 percent.
Retail Banking
Southeast Bank has started its Retail Banking Division in result of collective efforts of the bank retail advances grew
2012. Since then Southeast Bank has been offering very by 35.82 percent during last year while NPL was only 2.16
good services to its customers in every aspect of retail percent.
banking. This year with the help of deposit campaign
bank’s liability marketing team has gathered substantial Success of Retail Banking depends on diversified product
amount of low cost / no cost fund which is very essential offering and importance of retail deposit for the bank is
for the bank. At the same time through our branch, Retail enormous. By predicting emerging challenges to the
Banking Division has disbursed good number of retail banking sector Southeast bank has introduced two new
loans as well. deposit products. Feedback from the customers is very
positive regarding the features of the products.
Southeast bank is structured in a way so that all the retail
products and services can be accessible from all the Retail Banking Division of Southeast bank is prepared
branches of the bank. Therefore, our retail loan portfolio is and well structured to face any future challenges and
not based on only divisional cities. To tap the opportunity dedicated to attaining sustainable growth in Retail
of the rural areas bank has also introduced Rural Home business by providing good quality service with minimum
Loan under prudential guideline of Bangladesh Bank. As a turnaround time.
Retail Lone Composition
2%
8%
Home lone
Rural home lone
Car lone
40% Personal lone
50%
Make a bar chart on growth
Year Number of A/C Growth A/C Volume (BDT in millions) Growth of Volume
2014 1770 N/A 577 N/A
2015 1931 9.10% 734 27.31%
2016 2160 11.86% 997 35.82%

SME, Agri-Credit and

Financial Inclusion
Small & Medium Enterprises subdued investments. The Bank continued to pursue
a strategy of calibrated growth of the SME portfolio,
Small and medium enterprises (SMEs) play a significant with higher focus on managing concentration risks,
role in Bangladesh’s economic development, generating diversification of portfolio, monitoring and enhancement
large scale employment and facilitating inclusive growth. of collateral.
A strong SME sector is crucial for building a resilient and
dynamic corporate sector. At the same time, SMEs also Outstanding SME loan of the Bank as on December 31, 2016
face multiple challenges in terms of scale of production, stood at BDT.41,287.20 million while it was BDT.28,946.70
increasing competition and rapid adoption of innovative million as on December 31, 2015, registering a growth of
practices in their operations. Southeast Bank offers a 42.63 percent. In 2016, the Bank disbursed BDT.40,206.00
comprehensive suite of banking products and solutions to million to clients through all its branches, which is 13.73
SMEs for meeting their business and growth requirements. percent higher than that of 2015.
Our long-standing experience of partnering with SMEs
has enabled us to develop non-traditional techniques for Growth to our loan to Small and Micro Enterprises is
assessing credit risks. These techniques are unique and very remarkable. Since we felt that access to finance for
provide appropriate solutions customized to their needs. smaller segment of SMEs is more challenging, we have
The Bank also offers supply chain financing solutions concentrated more in this segment and as a consequence
and small-ticket funding to the channel partners of large in last year small, micro & cottage enterprises outstanding
corporate clients. The Bank has set up dedicated desks in experienced 21.95 percent growth making Small
all branches to assist SMEs. Year 2016 continued to remain Enterprises 51.45 percent of SME portfolio.
a challenging year for SMEs due to the gradual pick-up in
economic activity, high leverage among corporates and SME Disbursement over the Year
BDT in million
21000 18126 21200 26501 25000 30877 27500 35349 30000 40000
SME Business-Disbursement Growth
BDT in million
Year Target Achivment
2012 21000 18126
2013 21200 26501
Achivment
Achivment
Achivment
Achivment
2014 25000 30877 Achivment

Target
Target
Target
Target
Target
2015 27500 35349

2016 30000 40000 2012 2013 2014 2015 2016
BDT in million
Year 2012 2013 2014 2015 2016
Target 21000 21200 25000 27500 30000
Achivment 18126 26501 30877 35349 41287
Sectorwise Disbursement in SME Chart Titel

8%
Micro
25% Small
Medium
Service
Trade
Manufacturing
21% 42%
54% 50%
SME Strategy Rural and Inclusive Banking
In 2016 the bank successfully implemented a medium Bangladesh rural market presents significant growth
term SME strategy and segregated SME Business and opportunities as the market adapts to rapidly growing
underwriting from other Business Segments. Now SME mobile connectivity and access to formal financial
loan is also separated from Agricultural loan as Bank has services. The Bank’s rural lending strategy is focused on
created a separate Agri. Credit cell this year. As evident leveraging these trends and building a sustainable model
in our disbursement in SME segment and due to Branch for extending financial services to rural customers. This is
expansion in SME centric areas SME business continues being made possible by offering them a comprehensive
to remain the fastest growing business segment in product suite backed by Mobile based technology Service.
the Bank. Almost all the branches opened during year The Bank has set up a distribution network over the last
2016 are located in areas where SME business has high few years to reach customers in this market. The Bank has
potential. Bank will initiate a focus group discussion on developed customized financial products and services to
SME development where all Branches will participate to cater to a wide range of rural customers including farmers,
find ways for augmenting SME Business traders, processors as well as rural entrepreneurs. Bank is
disbursing easy loan to Tk 10.00 account holders under a
Bangladesh Bank refinancing scheme. School Banking is
also a part of our financial inclusion strategy.
SME The Bank offers various types of loans covering the entire
Banking
Performance agricultural value chain including loans to seed/input
dealers, crop loans and loans for purchasing irrigation
Asset
equipment, raising cattle and purchasing farm equipments
Quality trough MFI (Micro Financial Institutions) linkage.
Revenue Operating
Generation Efficiency Agricultural and Rural Credit
Agriculture is the main life-blood for the economy of

Market & Sales
Bangladesh. Almost 47 percent of the total labor force of
Products Delivery
Credit
the country and 85 percent of rural workers of the country
IT & are directly involved with agricultural activities like crops,
Risk
MIS
Management fisheries, livestock and forestry which ensure food security,
Strategy: SME
create self-employment, diversification of income
focus and generating activities and better standard of living for the
Execution
Capabilities people. Agriculture, as a sector contributes 17 percent to
the national GDP.
Agricultural credit has significant importance for the

socio-economic development of the country since it
Cluster Based SME Financing has increased production in agriculture sector. This is
also a priority sector of both the Government and the
Currently, cluster-based SME development is a popular Bangladesh Bank to ensure food security and nutrition,
approach for entrepreneurship development, SME poverty alleviation, employment generation and
promotion and industrialization with a view to facilitating accelerate the financial inclusion program. To see our
employment generation and poverty alleviation country as a middle income country, our GDP growth
around the world, especially in emerging economies. should be over 7% which may not be possible without
In Bangladesh it is considered as the most effective, 4%-4.5% agricultural growth. Considering the above,
economically viable and maximum output-oriented Southeast Bank Limited has been continuing proactive
approach for economic development. policy and program to boost up agriculture financing to
the farmers and agricultural entrepreneurs with utmost
As per guidelines of Bangladesh Bank, SEBL has already importance.
adopted a cluster-based financing approach for SMEs in
some industrial sectors such as Textile, RMG Accessories, We also believe that if the nation’s agriculture and rural
Food processing, Dairy & Poultry, Fisheries etc. We are based economy walks through a techno-based eco-
hopeful that we will be able to expand cluster based friendly process, all the targeted goals will be achieved in
SME financing all over the country in the upcoming years a sustainable way. With the same vision, Bangladesh Bank
through development of new clusters. announces a farmer-friendly agriculture and rural credit
policy for each fiscal year. Keeping this in mind, our bank
Southeast Bank is planning to role out a Cluster Financing sets the agriculture and rural credit policy for each fiscal
for Hosiery industry in Pabna in collaboration with SME year. Our bank has also set sector wise (crops cultivation,
foundation in 2017. irrigation machinery, agriculture machinery, pisciculture
farming, cattle/dairy and beef fattening, poultry farming, from 01 July, FY 2010-2011 under interest-loss subsidy
crop storing and marketing, poverty alleviation program facilities of the Government. The Central Bank (BB) has
and other activities related to agriculture) and branch advised all banks that credit facilities shall be allowed at
wise yearly and monthly target for smooth allocation of rebate rate (4%) under interest loss compensation scheme
agriculture credit. Our bank also extends Agriculture / of Government for cultivation of pulse, oil seeds and
Rural Credit as one of the major tools to bring the rural and spices. Bank may receive 6% interest loss compensation
unbanked people specially the farmers into the banking from Government through Central Bank after realizing
channel as financial inclusion program which plays a vital cultivation of the loan from borrower in full. Southeast
role in the rural economic development of the country. Bank Limited has positive intention to contribute in
In the absence of own branch network, the bank extends flourishing these crops in the country with a view to
agriculture credit facility through third party networks like reducing import dependency. In line with this, the Bank
well reputed NGOs / MFIs. It is worth mentioning that while has financed a sizeable amount in cultivation of maize, oil
using third party network for agriculture financing, the seeds and spices. Credit facilities are allowed at rebate rate
bank selects the NGOs/MFIs very meticulously to ensure (4%) for cultivation of maize, oil seeds and spices under
proper utilization of the fund. The Bank has disbursed a interest loss compensation from Government. During the
quite large portfolio of agriculture loans during the year, year of 2016, our bank has disbursed Tk.1.90 million among
which are listed below. 7 farmers against the target of Tk.1.50 million at rebate rate
(4 percent) for cultivation of maize, oil seeds and spices. All
Loan disbursed these indicate our endeavor to bring more and more un-
Disbursement banked rural people in banking system by providing them
Sector of disbursement during 2016
at percent (%)
(BDT in million) with agriculture credit at a lower interest rate.
Crops / Vegetables
2160.37 61.0 Loan disbursed
cultivation
Crops during 2016 No. of clients
Fisheries 389.57 11.0 (BDT in million)
Livestock 733.11 20.7 Oil seeds 0.50 1
Irrigation equipment 106.25 3.0 Maize 1.00 4
Crop storage & marketing 35.42 1.0 Spices 0.40 2
Solar 10.62 0.3 Total 1.90 7
Poverty Alleviation 106.25 3.0
Target and achievement
Total 3541.59 100
Southeast Bank Limited has achieved the Agricultural/
Agricultural loan disbursement during 2016 Rural Credit disbursement target of Tk. 279.39 crore
(achievement is 116.41% of the target) against total target
11% of Tk. 240.00 crore for the FY 2015-2016. In line with the
Agricultural & Rural Credit Policy and Programme of
20% Bangladesh Bank, a target of agricultural credit amounting
to Tk.295.00 crore has been set for Southeast Bank Limited
for the FY 2016-2017. Out of total target, Tk. 167.23 crore
has been disbrused during the period from July 2016 to
December 2016 which is 56.69% of the yearly target.
3%
1% Achievement in
FY Target Achievement percent (%)
3% 0.3%
61% 2015-16 240.00 279.39 116.41
Crops & vegetables cultivation Corp storage & marketing

Fisheries Solar Agricultural / Rural Credit disbursement
Livestock Poverty Alleviation target & achievement 2015-16
Irrigation equipment BDT in crore
240.00 279.39 116.41
Agriculture loan @4% rebate interest rate
There is a large demand for pulses, oil seeds, spices
and maize in the country. But the production of these
crops is not sufficient. As a result, we have to spend huge
amount of foreign currency for importing them. In order
to encourage production of such crops and disburse loan
to this sector, Bangladesh Bank has set the concessional
interest rate of credit disbursed in the cultivation of
Target Achievement Achievement in
pulses, oil seeds, spices and maize at farmers level at 4% percent (%)
Women Entrepreneur Financing
Development of women entrepreneurs is an embedded element of SME financing. In our experience we observed that
“Access to Finance” is a major challenge for a business owned by women especially during the initial years of starting a
business. To address the issue, Southeast Bank has come forward to help the women entrepreneurs and has given utmost
emphasis on the growth & development of women entrepreneurship. The Bank has a separate dedicated product named
“Southeast Shuprova” for women entrepreneurs. To encourage women Southeast Bank provides loan to the women
entrepreneurs at much easier terms & conditions including low interest, relaxed collateral requirement etc. Bangladesh
Bank’s refinancing windows also help women led enterprises. Southeast Bank has 2 exclusive branches dedicated to
provide banking services to women enterpreneurs.
In 2016 the Bank has disbursed BDT 1,610.80 million to business exclusively owned by women (SME) entrepreneurs
Success Story of an Woman Entrepreneur

Secondary School Certificate (SSC) passed Suchana started her career at Ramganj of Laxmipur district. Initially she used
to take orders from local tailoring shops. Later she started doing Block, Batik etc. Since her husband was staying abroad,
she herself had to take care of her family and children. Of her two sons, one was handicapped. For this reason she came to
Dhaka to get her son admitted to a special school. But all these adversities could not hold back her entrepreneurial spirit.
After arriving Dhaka, she hired a shop at Bailey Road in 2011 investing Tk.4.00 lac and started trading business of saree. In
the same year, she expanded her business by taking another shop with Tk.7.00 lac at “Fortune Shopping Mall” located at
Mouchack Intersection. Now she is a successful woman entrepreneur. At present, her capital stands at about Tk.30.00 lac.
We are proud of financing a hardworking entrepreneur like her and be a part of her adventure.
A Portrait of SME Entrepreneur

Glimpses of Some Projects

Financed by SEBL
Glimpses of Some Projects

Financed by SEBL
Islamic Banking
Southeast Bank Limited caters both Conventional and Major Activities in the Year 2016
Islamic banking services. Out of total 128 branches, 05
(five) branches are designated Islamic Banking Branches i) 04 (Four) meetings of Bank Shari’ah Supervisory
of the Bank. To enjoy a very strong branding image Committee were held where different operational
with good market reputation in the Banking sector, a issues, policies and strategies were reviewed.
Strategic Business Plan has already been put in place
in the Bank after approval of the Board for expansion of ii) To provide premier banking services to holy Hajj
Islamic Banking Operations. The Strategic Business Plan Pilgrims, Southeast Bank signed Memorandum of
encompasses introduction of Islamic Banking Service Understanding (MOU) with Hajj Agencies Association
Desk (IBSD) in Bank’s Conventional Banking Branches of Bangladesh (HAAB), Ministry of Religious Affairs and
through the use of Bank’s online banking facilities. It also Sonali Bank Limited to collect Hajj Pre-Registration
branded the bank’s Islamic Banking services as Southeast and Registration Fee from the Hajj Pilgrims and Hajj
Tijarah. The Islamic Banking operations are completely Agencies. Side by side, most of the HAAB members are
separate from conventional banking. Separate accounting involved in IATA ticket, visa processing and overseas
system for Islamic banking branches is being maintained. employment business in addition to their Hajj and
Umrah related business. We provided financial support
At present 97 staff members are working in the 5 Islamic to the Hajj agencies as needed throughout the year
Banking Branches. The Bank arranges regular training by way of Bank Guarantee and other working capital
programs for them on operation of Islamic Banking. finance.
The Bank is an active member of the Central Shari’ah
Board for Islamic Banks of Bangladesh and Islamic Banks’ iii) Five special review meetings with the HOBs and MOs
Consultative Forum. It is deeply committed to run its of Bank’s Islamic Banking Branches were conducted
Islamic Banking operations by strictly complying with all for overall business review and charting future course
Shariah requirements. of actions for improvement.
Financial Analysis
iv) 02 (Two) Training Programs were conducted on Islamic
Since inception of the Bank, Islamic banking business Banking Operations, IT issues and Islamic Banking
of Southeast Bank marked steady growth in all areas - Service Desk (IBSD) for the officers of the Bank.
deposit, investment and profit. With only 5 branches,
around 8.53 % of Southeast Bank’s business (in terms of v) The Muraqib of the Bank conducted Shariah inspection
profit) is being achieved from Islamic Banking operation of the Islamic Banking Branches and submitted his
with only 4 percent of manpower. As on December 31, reports to the Shariah Supervisory Committee. The
2016, the deposit and investment of Islamic Banking Committee reviewed the report.
Branches were BDT.16,740.60 million and BDT.9,291.20
million. During the period 2016, total import and export The Islamic Banking Branches (IBB) have made
businesses handled by the Islamic Banking Branches were considerable progress in the Year 2016. It is expected that
BDT.5,392.29 million and BDT.7,354.80 million respectively. by the prized guidance and policy directives of Bank’s
Non Performing Investment of Islamic Banking Branches Board and Management, the Islamic Banking operation
was 8.07 percent of their total investment in 2016. The will progress further in 2017 and earn business success in
performance of the Islamic Banking Branches during the different indicators, In Sha Allah.
year 2016 is also reflected in its Balance Sheet and Profit
and Loss Account as are included in this report.
International Business
Operations
From the very outset of the commencement of business International Division consists of different units for the ease
back in 1995, Southeast Bank Limited (SEBL) has been of operation and it relentlessly coordinates, supervises
facilitating significant volume of International Trade and and supports International Trade and Foreign Exchange
Foreign Exchange transactions of the country. Widely transactions of AD branches through following units-
cherished as one of the leading banks in supporting Trade
Finance and Foreign Exchange transactions of the country, Correspondence Banking
and Financial Institutions As of December
Southeast Bank is constantly improving its capacity
Unit 31, 2016
to satisfactorily serve its valued clients. Establishment
Central Payment Center 79 Countries
of a large and effective network of correspondences
(CPC) Unit 248 Banks
worldwide to cater to the growing demand of quality
Reconciliation Unit 35 Nostro
trade services of the clients is the core strategy of
Reporting Unit Accounts
international business operations of the Bank. Southeast
EDF, Cash Incentive and Fund 807
Bank has earned enough trust from its valued clients by
Management Unit Correspondents
serving them leveraging its large relationship network.
SWIFT Operations and IFC, ADB & GCPF
The Bank is constantly expanding its relationship with
high street banks of different countries. As of December Sanctions Screening Unit
31, 2016 Southeast Bank had established Relationship
Management Apllication (RMA) with 807 correspondents Correspondence Banking and Financial Institutions
in 79 countries all over the world. Unit
Correspondence Banking and Financial Institutions

Currently SEBL is maintaining 35 (Thirty Five) Nostro
unit is the main international contact point of the Bank.
Accounts in major currencies including 10 (Ten) Nostros
Being the heart of International Division, this unit plays
under Asian Clearing Union (ACU) and 01 (One) Nostro for
a pivotal role in facilitating foreign trade transactions of
Off-shore Banking Unit (OBU) to support foreign exchange
AD branches. With a pool of bright and professionally
transactions. SEBL is also enjoying hefty confirmation lines
sound officials correspondence banking and financial
of over USD 500.00 million as well as funded credit lines
institutions unit has meantime expanded the international
with more than 50 reputed banks worldwide.
network of the bank up to 807 RMA relationship with
Business Highlights 248 banks in 79 countries. Side by side building and
nurturing correspondent network, Correspondence
2016 2015 Banking and Financial Institutions team looks after L/C
Growth in
(BDT in (BDT in advising, confirmation, negotiation, discounting and
Percentage
Million) Million)
foreign guarantee, etc. This team also plays the key role in
Import Business 171,531.73 151,812.58 12.99 partnering with Development Finance Institutions (DFIs)
Export Business 146,606.09 126,423.89 15.96 and sourcing fund for Off-shore Banking Units (OBUs) of
the Bank.
International Division
Partnering with multilateral development finance
International Division, having decentralized trade institutions is one of the key strategic focuses of the Bank
operations through 21 (Twenty One) Authorized Dealer as such relationship provides benefits in many ways. The
(AD) branches in important commercial hubs of the Correspondence Banking and Financial Institutions unit
country, plays a crucial role in overall supervision and of International Division has been constantly working
control of foreign trade and foreign exchange business to strengthen relationships with DFIs as well as other
of the Bank. With major focus on trade, International financial institutions worldwide. Currently, the Bank has
Division also coordinates L/C confirmation, negotiation, relationship with following DFIs-
discounting, foreign guarantee, trade payments, nostro
reconciliation, reporting, etc. A large pool of bright and International Finance Corporation (IFC) - Southeast
dedicated professionals having international certification Bank is one of the very early members of Global Trade
on trade products and procedures supervise and support Finance Program (GTFP) of IFC from Bangladesh. The
international trade and foreign exchange business of the Bank has a hefty credit line under GTFP of IFC which
Bank using state of the art technology. support the Bank in L/C confirmation and guarantee
business internationally. IFC is also providing a funded EDF, Cash Incentives and Fund Management Unit
facility for off-shore banking units of the Bank.
Export Development Fund (EDF) and Cash Incentives have
Asian Development Bank (ADB) - Southeast Bank become very important source of funding for exporters
is availing a sturdy credit line under Trade Finance now days. To ensure efficient handling of these special
Program (TFP) of ADB for L/C confirmation and funds, EDF, Cash incentives and Fund Management unit
other eligible international guarantee. The Bank in of International Division plays a very important role.
the reporting year has signed a Revolving Credit Besides, this unit manages foreign currency funds in the
Agreement (RCA) with ADB for a revolving funded 35 (Thirty Five) Nostro accounts of the Bank for ensuring
facility under TFP. timely payment against imports and outward remittances.
This unit also looks after disbursement and repayment of
Global Climate Partnership Fund (GCPF) - With a Long Term Financing Facility (LTFF) under Financial Sector
commitment to the society and environment, the Support Project (FSSP) and Green Transformation Fund
Bank partnered with Global Climate Partnership (GTF) of Bangladesh Bank.
Fund (GCPF), a public-private partnership initiative
registered in Luxemburg. GCPF uses public funding SWIFT Operations and Sanctions Screening Unit
in order to mitigate climate change and drive
sustainable growth in developing and emerging Being a member entity of the Global SWIFT.NET since
2000, Southeast Bank facilitates cross border trade
markets. The Bank is currently availing an unsecured
transactions, inward/outward remittance etc. of the Bank
funded facility from GCPF for financing energy
through state of the art secured infrastructure. SWIFT
efficiency projects that reduce projected greenhouse
Operation Unit works as an authenticated communication
gas (GHG) emissions by at least 20% and renewable
medium of the Bank in International Division, Head Office.
energy generation projects.
All AD branches are connected to Global SWIFT Network
Central Payment Unit via Data center at Head Office and currently facilitating
seamless delivery of SEBL’s innovative Trade and FEX
Equipped with state of the art technological infrastructure business products and services to the valued clients. The
and dedicated professionals Central Payment Unit Bank has already established one of the most resilient,
looks after and facilitate fully centralized trade payment secured and dedicated network architecture through
services at Head Office. The Bank has gained satisfactory adopting industry best practices e.g hosting SWIFT
level of efficiency in transactions settlement and fund server at Demilitarized Zone (DMZ), using APNIC IP pool
management of nostro accounts of the Bank after to connect to SWIFT Gateway, adoption of multifactor
centralization of trade payment. Central Payment Center authentication framework, strict monitoring over SWIFT
(CPC) has also substantial contribution to the income of workstations, etc. The Bank continuously evaluates the
the Bank. The Bank is now working for centralization of robust control procedures already in place for operations
outward remittance under CPC. like centralized trade payment, NOSTRO reconciliation,
adhering to additional layer of authorization etc., so that
Reconciliation Unit Bank’s information in SWIFT network remain always safe
and secured.
From the regulatory perspective as well as operational
perspective, timely reconciliation of transactions made SWIFT Operation has also implemented ‘SWIFT Sanction
through different nostro accounts of the Bank is a must. To Screening Solution’, a fully automated cloud based
ensure regulatory and operational requirements, nostro secured portal from SWIFT that screens both incoming
reconciliation unit of International Division regularly and outgoing SWIFT transactions against sanction lists
reconciles foreign exchange transactions of the Bank using (OFAC, UN, US, EU etc.) for combating sanction and
automated reconciliation software. Nostro reconciliation terrorist financing related threats. Customers of the Bank
unit also acts as a watchdog to combat fraud, forgeries may feel relaxed more than ever before, knowing the
and errors in foreign exchange transactions. banking channel is free from infiltration by any criminal or
unscrupulous parties for money laundering and financing
Reporting Unit of terrorism.
Timely reporting of foreign exchange transactions is a Important Events of International Division in 2016
mandatory requirement of regulators of the country. The
1. Signing of Revolving Credit Agreement for USD 5.00
reporting unit of International Division reports foreign
million with Asian Development Bank (ADB) under
exchange transactions of the Bank periodically and on
their Trade Finance Program (TFP) on March 31, 2016.
demand basis to Bangladesh Bank and other regulators.
Over the years the Bank gained remarkable efficiency in 2. Signing with Sustainable Finance Department (SFD)
reporting due to dedication and expertise of the reporting of Bangladesh Bank for participation in USD 200.00
unit in all manual and online reporting of foreign exchange million Green Transformation Fund (GTF) on December
transactions to Bangladesh Bank. 01, 2016.
Off-Shore Banking Operations

The Bank obtained permission from Bangladesh Bank for OBU of the Bank offers following products and
operation of Off-shore Banking Unit (OBU) on June 24, services to valued clients -
2008 and commenced OBU operation on December 30, Foreign Currency Deposit Account of Non-residents
2009 by inaugurating first OBU in Dhaka Export Processing
Zone (DEPZ). Second OBU of the Bank was inaugurated on
Export-Import services to A- category industrial units
April 18, 2010 in Chittagong Export Processing Zone (CEPZ).
Over the years OBU has become an important strategic of Export Processing Zones (EPZ) and Economic Zone
business unit due to growing demand of cheaper foreign (EZ).
currency loan and Usance Payable At Sight (UPAS) Letter
of Credit from the clients. The overall operation of the Off- Financing Usance Payable At Sight (UPAS)
shore Banking Units is controlled and supervised by Off- Documentary Credit
shore Banking, Head Office Cell of International Division.
Southeast Bank OBUs provide a continuum of financial
Short Term Foreign Currency Loan to ADs doe
services such as deposit taking, money transmissions,
trade finance, credit facilities, etc. Side by side supporting purchase of Export Bills in Foreign Currency
A Category industrial units of EPZ, OBUs of the Bank are Foreign Currency Term Loan to eligible resident
also supporting on-shore clients within the purview set industrial units.
out by the Bangladesh Bank.
Business Highlights of OBU
2016 2015
Growth in %
In USD Mill: In BDT Mill: In USD Mill In BDT Mill:
Total Deposits & Borrowing 77.68 6,114.44 61.37 4,817.96 26.58
Total Loans & Advances 80.38 6,327.72 62.38 4,897.19 28.86
Total Operating Profit 1.38 107.79 0.75 58.89 84.00
Total Deposits & Borrowing Total Lones & Advances Total Operating Profit
Fig in USD mil Fig in USD mil Fig in USD mil
61.37 77.68 62.38 80.38 0.75 1.38

GROWTH 26.58%
GROWTH 28.86%
GROWTH 84%
2015 2016 2015 2016 2015 2016

Treasury Management
To cater to the needs of different treasury solutions in SEBL exerts all out efforts to develop an active secondary
different economic environments by the customers, market of government securities by participating both in
Southeast Bank has a very dynamic and innovative treasury the Primary Auction and the secondary transactions of the
team. The team is committed to offer better prices and same.
excellent services with an array of different products which
best fit the changing environment. Through forecasting As the market has been observing huge liquidity surplus
the market scenario in terms of liquidity, interest rate and consistently, demand for these instruments has increased
exchange rate movement, SEBL treasury has contributed manifold. With strong co-ordination among money
remarkably well in 2016 and also helped the Bank to earn a market and FX desk, fixed income desk was able to
consistent profit over the years. SEBL treasury has separate maintain an optimum portfolio of government securities
designated desks to ensure optimum treasury solutions which contributed significantly to the overall profit of
which are depicted below: the Bank. This desk also analyzes the effective duration,
impact of rate shock on the value of the portfolio as well as
Money Market Desk evaluates the total return from the risk-return perspective.
Fixed Income Desk
Asset Liability Management Desk The desk also exploited the market opportunity of huge
Foreign Exchange Desk demand, maintained a sizable portfolio in trading book
Corporate Service Desk and earned capital gain by buying and selling these
securities in the secondary market.
Money Market Desk
Asset Liability Management Desk
Money market desk assumes the responsibility of
In banking, Asset-Liability Management is the practice of
maintaining the Cash Reserve Requirement (CRR) along
managing the risks that arise due to mismatches between
with local currency fund management of the Bank. This
the assets and liabilities of the Bank. In this dynamic
desk also ensures that the Bank remains sufficiently liquid
financial market environment banks face several risks
to meet all its financial obligations and commitments to
such as Liquidity Risk, Interest Rate Risk, Credit Risk and
the customers of the Bank even in the stressed liquidity
Operational Risk etc. Asset-Liability Management (ALM) is
condition.
a strategic management tool to manage Interest Rate and
Liquidity Risk faced by banks.
Money market was overburdened with excess liquidity
throughout the year of 2016. Slower private sector credit
Asset-Liability Management properly addresses the risks
growth coupled with reduced government borrowing
that arise in the banking business. The main objectives
from banking sector and access to foreign currency loan
and functions of Asset-Liability Management desk are the
contributed to the extremely liquid market scenario. A
following:
total of BDT 355.99 billion surplus funds was parked in
Bangladesh Bank bill by the banking sector. Call money
Liquidity risk management of the bank
rate was hovering around 2.75% to 3.00%. In such a
scenario, money market desk with timely integration Management of market risks including interest rate
to fixed income and foreign exchange desk of treasury and exchange rate risk
ensured optimum utilization of fund while maximizing Planned growth of assets and liabilities
the profitability of the Bank. Undertaking financial hedge positions
Overall fund management of the bank
The desk handled around BDT 1,740 million on daily basis
Trading risk management; and
while maintaining optimum local currency liquidity of the
Bank. Regulatory compliance
Fixed Income Desk The year 2016 was a challenging year for bank’s Asset-
liability management. The banking sector was awash with
Main responsibility of fixed income desk of treasury team surplus liquidity with very minimum opportunity to invest.
is to look after the Primary Dealership activities of the Bank Southeast Bank with strong acumen and insight went
and also to maintain required amount of government for planned growth of assets and liabilities so that Net
approved securities for maintenance of Statutory Liquidity Interest Income (NII) registers a steady growth. Interest
Requirement (SLR) as per Bangladesh Bank directives. rate in the market was in a decreasing trend for both
asset and liabilities; so it was a challenge for the ALM to the exchange rate movement of USD and other currencies
ensure a reasonable spread. The ALM desk was proactive against BDT and set the exchange rates of major foreign
in revising the rate of interest on deposit products so that currencies for settling different transactions. The desk
interest rate risk is minimized as well as the profitability of successfully maintained favorable Net Open Position
the bank is safeguarded. The ALM is responsible for the (NOP) throughout the year. While maintaining favorable
management of balance sheet gap in order to mitigate NOP, the desk also ensured maximum level of foreign
the liquidity and interest rate risk of the bank. The ALM currency liquidity and explored the market opportunities
desk of Southeast Bank has been complying with the through SWAP, Placement and Forward transactions
BASEL III requirement of maintaining Liquidity Coverage which helped the Bank to earn more profit.
Ratio (LCR) and Net Stable Funding Ratio (NSFR) and
reporting it to Bangladesh Bank on a regular basis. Apart The interbank foreign exchange market was quite stable
from this the desk also reports to the Board of Directors and liquid until end of October’2016. Thereafter, USD
about some liquidity ratios and other important financial started to appreciate against BDT and stood at 78.78
indicators in every meeting as stipulated in the new ALM which was 78.40 at the end of June’2016. The inward
guideline of Bangladesh Bank. remittance at the end of 2016 stood at USD 824 million
compared to USD 778 million at the end 2015 recording a
To address and mitigate various risks involved in the 5.91 percent growth.
business, ALM desk of the Treasury Division prepares
Asset-Liability Committee (ALCO) paper each month and Corporate Service Desk
conducts monthly Asset-Liability meeting where all the Treasury Division of Southeast Bank provides superior
issues associated with ALM are discussed and instructions services to its corporate clients through its diversified
are given accordingly. The ALM desk also reviews and corporate service desk. The main responsibility of this
revises the Asset-liability Management policy of the desk is to ensure maximum utilization of the fund of the
bank every year according to the policy guidelines of corporate customers. Basically different renowned life
Bangladesh Bank. insurance companies are our corporate customers and
Foreign Exchange Desk they are maintaining a sizable amount of government
securities portfolio with our bank. Corporate Service
Foreign Exchange (FX) desk consisting of experienced Desk of our treasury division gives its customers time
and skilled dealers having foreign training are engaged in befitting advices so that they can maximize their return by
foreign currency transactions. The desk closely monitored discovering new investment opportunities.
Foreign Remittance
Southeast Bank is a brand for its representation among the In order to ensure hassle free pick up of remittances,
nonresident Bangladeshis and their family members at we make payments through all the available means like
home and abroad. Apart from providing premier services, mobile banking system, BEFTN, over the counter payment
we are facilitating the Bangladeshi workers by Account system, online account deposit and replenishment of
Opening programs. Furthermore, we are marketing remit card. These have taken smooth remittance service
different products of the Bank through our subsidiaries, within the reach of beneficiaries anywhere in the country
correspondents and contractual marketing agents among in the simplest way. Both the remitter and the receiver
the expatriates. are communicated through an auto-generated SMS
confirming that the money has already been deposited
Southeast Bank has designed its products as per the needs even in off banking hours.
of the nonresident Bangladeshis and their family members
by extending remittance receiving points through sub- We have initiated instant deposit system under
agencyships with local scheduled commercial banks, API (Application Program Interface). Our foreign
Mobile Financial Services and Micro Finance Institutions. correspondents will be able to deposit remittance
In addition, beneficiaries of remittance are receiving instantly in the accounts maintained with Southeast Bank.
money on real time through My Remit Cards. The card
Now, three subsidiaries (Own Exchange Companies) of
holders can withdraw money from ATMs and do shopping
the Bank located in the United Kingdom, Australia and
using this card at any time (24X7). This Card helps us retain
South Africa are serving the Non Resident Bangladeshis in
some money in the banking system.
the respective countries of operation.
Although the flow of remittance has slowed down recently, All the staff members of the Remittance Division are
we were able to achieve positive growth of remittance in dedicated to rendering efficient & prompt services both
our Bank. In the year 2016, Bank collected USD 824 million to the remitters and the beneficiaries.
as wage earners’ remittance. Inward Foreign Remittance
plays a vital role in lessening the bank’s dependency on Southeast Bank treats the expatriate workers as genuine
inter-bank market for payment of import bills. development partners of Bangladesh.
Country-wise percentage of remittance inflow in 2016 Country wise Percentage of Remittance Inflow in 2016
Country Amount (USD) Percentage
22%
USA 180,617,621.21 22
Oman 8,505,000.00 1
UK 40,152,844.11 5
South Africa 11,591,804.95 1 1%
UAE 11,037,572.00 1 USA
5%
Australia 11,187.00 1 Oman
1% UK
KSA 58,746,285.42 7 1%
Others 513,873,010.6 62 South Africa
1%
Total 824,535,325.34 100 UAE
7% Australia
KSA
Inflow of Foreign Remittance over the Years 62% Others
USD in million
544 505 629 778 824
Inflow of Foreign Remittance over the years
Year USD in Million

2012 544
2013 505
2014 629
2015 778
2016 824
2012 2013 2014 2015 2016
SEBL Credit Card

Credit Card is a unique consumer financial product that offers credit and provides the means of payment at the same
time. Credit Card also facilitates charge free repayment period and repayment in installments. With that unique profile
Credit Card has been the convenient means by which people around the world spend trillions of money. It is no wonder
that Credit Card is becoming popular in Bangladesh day by day and eventually will become centre to the financial lives
of the most Bangladeshi consumers in future. Beside that the world is heading towards the concept of cashless society
where physical cash transaction is being replaced by electronic transaction. Payment through Card is the most popular
medium of cashless electronic transaction. The market size of credit card is enormous in our country compared to the
number of credit card issued so far. There are 2.5 million taxpayers who submitted tax return in this year are eligible for
credit card in terms of income level. But all the card issuers of the country could issue 0.7 million credit cards in total as
of date.
Southeast Bank has been issuing Credit Card since the year 2005 and has shown sincerity and efficiency in meeting
customer demands. The year 2016 has been the year of embracing the cutting-edge technology with product
diversification and newer features. Following are the benchmarks of the year:
Year wise transaction growth in Bangladesh Business opportunity

BDT in million
39000 57000 62700 14080 16570
28%
72%
2011 2012 2013 2014 2015 Tapped Untapped
Chip Card: EMV Chip card has been introduced replacing the conventional magnetic strip card. This most advanced
technology prevents fraudulent use of the card and ensures faster transaction processing.
Reward Point: Cardholders earn Reward Point whenever they purchase using card. Reward Points can be redeemed
for waiver of card fee and cash reward.
EMI Pay: EMI based payment solution is a feature that allows cardholder to repay certain large purchases in equal
monthly installments over an extended specific repayment period.
Discount Partners: The Bank has partnered with a good number of retail outlets, restaurants, hotels and fashion
houses where cardholders get attractive discounts while they pay using our card.
Free visit at Balaka Lounge and Skylounge: The bank has made access available to Balaka Lounge and Skylounge
at Shahjalal International Airport for its World and Platinum Cardholders free of cost.
Since inception, the bank has been maintaining a steady growth in credit card business. Like previous years, 2016 was also
a successful year with good business growth to the tune of 17.80 percent in net profit, 22 percent in card base and 25.57
percent on outstanding balance over the position of the last year.
Year-Wise Growth of Card Business

BDT in million
55.25 65.30 74.70 88.00
2013 2014 2015 2016
The Bank is also working on exploring new dimensions of business and services. E-Commerce Acquiring is one of them. The
Bank has been in card issuing business since the beginning of card operation. Now the Bank is focusing on E-Commerce
Acquiring. We are in the process of establishing an online payment gateway through which customers will be able to pay
online for goods and services. We have been observing a geometrical increase of online transactions in Asia as it is the
most convenient way of ordering goods and services and pay for it.
Local prepaid card is another product that we are looking forward to introduce soon. There is a significant segment of
customers who do not have enough means to prove credit worthiness, do not want to be burdened with credit facility or
do not maintain bank account with us. Most of the population of our country still remains unbanked. There are also senior
citizens and students who are either old or minor in ages whom we cannot grant credit card. Local prepaid card might be
the right kind of product in order to reach that larger segment of customers.
A two-factor authentication is another service in process. It is a second line authentication system on transaction over
internet and it prevents fraudulent use of the card.
We are very hopeful that with the present and upcoming features we will be able to provide better customer service than
ever.
Alternative Delivery Channel

Alternative Delivery Channel
Alternative delivery channel (ADC) has enabled the Bank to serve the customers beyond Banking
hours. ADC team of SEBL is providing 24X7 service for customers’ convenience through Debit
Cards and ATMs. ADC team is working relentlessly to provide new and improved services.
Growth
ADC has implemented world class technology and re-
engineered process to ensure faster, smooth and better
service. This leads to a noteworthy growth in SEBL Debit
Card Transaction Number, Transaction amount and Debit
Card Issuance.
SEBL Debit Card Features
Transaction Amount
SEBL Debit Card holders can now do transactions at At the end of 2016, total transaction amount by SEBL Debit
any ATM all over the country through National Payment Card and ATM was BDT 736.89 crore. In comparison to the
Switch of Bangladesh (NPSB) network. year 2015, Transaction amount has increased by 14.48%
SEBL is the first Bank in Bangladesh to implement secured Successful Transaction Amount
PIN based transactions on other banks’ Point of sales (POS) In Crore
terminals to comply with Bangladesh Bank. SEBL Debit
643.68 736.89
Card Holders now can purchase from different outlets at
PIN enabled POS terminals.
2015 2016
SEBL ATM
SEBL Debit Card Growth
At the end of 2016, our live ATMs were 127 across the
country. Moreover, ADC has taken imperative initiatives At the end of year 2016, our total number of issued SEBL
for rapid expansion of ATM Booths at suitable locations to Debit Card was 1,29,900. The number of card has increased
facilitate our existing customers and penetrate potential by 35.32% in comparison to the year 2015.
clients across the country.
Total 127 ATMs of SEBL No of issued Debit Card
25
95,993 129,900
2
Dhaka
14 Chittagong
Barishal
Khulna
11
Rajshahi
67 Rangpur
2
6 Sylhet 2015 2016
Credit Risk Management

in SEBL
The responsibility of managing credit risk of the Bank is Credit Approval Department
vested upon Credit Risk Management (CRM) Division,
which is entrusted with the task of overseeing various Within this framework, Credit Approval Department
risk management measures envisaged under the credit analyzes the credit proposals, assesses different risk
risk management policy. CRM Division is playing among elements covering Management, Financial, Marketing,
others the following major roles in line with the Credit Risk Technical, Environmental etc. aspects associated with
Management Guidelines of the Bank: the business, verifies the offered securities physically,
visits projects and finds out the mitigating factors which
Formulation and/or up-gradation of different policies, help the management to expedite the decision making
procedures, strategies, guidelines related to credit risk process. The Bank follows a well defined multi layered
management and credit operation of the bank with a discretionary power structure for approval of any credit
view to mitigating its inherent risks. facility in accordance with Bank’s credit policy. The main
functions of the Department are as follows:
Coordinating functions of Credit Approval
Department and Credit Administration Department. To scrutinize the credit proposals in line with Bank’s
Credit Policy, Risk elements and Bangladesh Bank’s
Assisting Corporate Banking Division regarding Policy/regulations.
the business issues through in-depth analysis
and evaluation of credit proposals as well as the To assess risks inherent in the credit proposals with
compliance issues in order to mitigate different credit due diligence i.e. identification of credit risk, risk
risks. mitigation measure (if any) from assessment of credit
requirement, evaluate proposed facility pricing etc.
Ensuring due diligence in credit approval process.
To ensure that all credit lines are approved in
Ensuring proper implementation of all the approved accordance with Bank’s credit policy under defined
plans, policies and strategies of the Bank regarding approval authorities conferred by the Board.
credit portfolio for achievement of the organizational
goals. To issue sanction advices to the respective branches
incorporating all the applicable terms and conditions
Setting different internal limits (with due approval with a view to protecting interest of the Bank upon
from the competent authority) for diversifying the approval of the competent authority.
credit portfolio to avoid concentration risks.
To liaison/correspond with Bangladesh Bank and
Review and supervision of sectoral allocation/ other external agencies/regulatory bodies on various
distribution of loans and advances, maturity gap issues as and when required.
analysis and intimate the same to the Board of
Directors on quarterly basis. Credit Administration Department
Review and re-fixation of interest/profit rate based The Credit Administration Department is assigned to look
on cost of fund, cost of equity, cost of liquidity, risk after post approval process such as to establish better
appetite and market trend etc. against loans and control over loan portfolio by helping completion of
advances /investment both for conventional and documentation, scrutinizing the checklist of documents,
Islamic Banking operations as and when required. limit, rate of interest, tenor etc. in a systematic manner
and allow subsequent disbursement, ensuring utilization
Credit Risk Management (CRM) Division of the Bank is of fund, monitoring and compliance of all covenants and
comprised of two departments named Credit Approval conditions precedent. This Department makes constant
Department and Credit Administration Department. Two follow up of the credits just after its sanction and continues
Departments work separately without compromising its efforts to keep the credits performing and unclassified.
interest of the bank. This Department also acts as a bridge between the branch
and the management as well as between management Loan documentation status has improved
and Board of Directors by providing information in respect significantly due to regular monitoring and follow-up
of health of the loans and advances. Main functions of
the Department are segregated in the following four Priorities for 2017
categories:
Introducing Centralized Limit Loading and
Disbursement system in 2017 with a view to
Disbursement Function;
restricting unauthorized disbursement and bringing
Monitoring Function; stability in assets quality through mitigating the
Compliance Function; associated risks
Custodial Function.
Establishing a separate MIS wing to keep proper
Major Achievements in 2016 history/records of credit portfolio elaborately and
extensively
Credit Risk Management Guidelines of the Bank
has been reviewed and updated in line with the Strengthening Monitoring of standard credit
New Guidelines on Credit Risk Management by portfolio so that slippage of performing loans into
Bangladesh Bank, present and upcoming domestic non-performing loans can be restricted and sound
and international economic conditions etc. asset quality can be ensured
A number of policies like- Valuation Methodologies, Curving the trend of non-performing loans of the
Documentation methodologies, Revision of Interest/ bank down through proper monitoring and recovery
Profit rate has been reviewed, updated and approved of existing non-performing loans
by the Board of Directors
Establishing a full-fledged documents Analysis Unit
A well crafted Risk Appetite Statement has been equipped with expert documents analyst under
prepared and approved by the Board Credit Administration Department to ensure proper
and flawless documentation
Through continuous monitoring and vigorous
persuasion, sound health of the asset quality has
been maintained and non-performing loans of the
Bank could be restricted below 5% of the total loan
portfolio
Risk Management
Practices within SEBL
Sound Risk Management and balancing risk-reward trade- There are other miscellaneous issues like submission of
offs are critical to the Bank’s success. Business and revenue the decisions and recommendations of the Committee
growth are, therefore, to be weighed in the context before the Board quarterly, compliance of the instructions
of the implicit risks in the Bank’s business strategy. As a of the regulatory authorities from time to time, evaluation
financial institution SEBL is exposed to certain amount report of the internal and external audit reports etc.
of risks which are associated with its lending, trade-
service business and operational activities. Managing Activities of Risk Management Division
and mitigating such risks are always a prioritized concern
The Risk Management Division (RMD) of SEBL was
of SEBL to build public trust and confidence which is
established to comply the direction of Bangladesh Bank
necessary for mobilizing private savings for investment
(DOS (EW)1164/14(southeast) 2009-452 dated 10-06-
to facilitate economic growth. Therefore, effective risk
2009) for strengthening risk management activities
management activities are a prerequisite for the Bank to
of the bank. RMD looks after effectiveness of the Core
achieve its business objectives. SEBL is committed towards
Risks Management of the Bank and also ensures the
embedding a risk culture in its organization and embraces
capital management of the Bank under Basel Accords in
risk management as a core competency that allows it to
association with the directives of Bangladesh Bank time
optimize risk-taking through objectivity and transparency.
to time. RMD is responsible to manage and measure risk
SEBL has always taken cognizance of the risks associated
on the basis of the bank’s approved risk parameters and
with conducting banking business. In this connection, the
regulatory requirements. Functions of RMD are furnished
Bank has tailored its risk management program to its need
below in summary:
and circumstances.
SEBL’s Risk Management Strategy Communicating views to the Board and senior
management regarding the Risk Management
SEBL has clear risk management objectives and a well- culture and risk concentration all over the bank
established strategy to address them, through core risk Collecting all relevant data related to the risk
and capital adequacy related risk management processes indicators from different models and information
and encompasses all the activities that affect its risk system at the earliest
profile. At strategic level, our risk management objectives
are as follows Assessing the quality, completeness and correctness
of those data
To ensure active involvement of the Board of Directors Designing bank’s overall risk management strategy
and senior management;
Developing, testing, and observing use of models for
To ensure that business growth plans are properly measuring and monitoring risks
supported by effective risk infrastructure;
Preparing and taking approval of various policies like
To implement risk strategy approved by the Board of ICAAP, Stress test policy, Disclosure policy etc.
Directors;
Developing and using risk assessment tools and
To develop policies and procedures for identifying, methodologies
measuring and controlling risk;
Identifying and monitoring unauthorized limits
To provide all reports required by the Board and overriding and analyse possible scenarios through
its committees for the effective performance of stress testing
risk management oversight functions;
Preparing Minimum Capital Requirement (MCR)
To optimize risk/return decisions by taking them report
as closely as possible to the business, while
Preparing different financial parts of different
establishing strong and independent review and
Covenants (IFC, ADB, GCPF etc.)
challenge structures;
Preparing the Risk Management Report on Monthly
To ensure that business growth plans are properly
basis and Comprehensive Risk Management Report
supported by effective risk infrastructure;
(CRMR) on Semi-annual basis
To help executives improving the control and co-
Ensuring management of Credit Rating
ordination of risk taking across the busines;
Preparing and analysing the liquidity risk through between the Bank’s Assets and Liabilities. On the other
Liquidity Coverage Ratio (LCR) on Monthly basis and hand, different risk factors are judged using three different
Net Stable Funding Ratio (NSFR) on quarterly basis shocks: minor, moderate and major shocks. The risk factors
are : performing loan downgraded to Bad/Loss, increase in
Analysing the overall impact on Bank’s capital base
NPL due to default of top 10 borrowers, negative shift in
for the credit, market and operational activities and
NPLs categories, decrease in the FSV of collateral, change
assist the management in streamlining the strategy
in interest rate, FEX shock, equity shock and liquidity stress.
for minimizing the impact on capital requirement
Preparing disclosures under Pillar-III and any other Risk Management Report
financial reporting as recognized by Bangladesh Bank
Risk Management Division (RMD) prepares Risk
Basel -III Implementation Management Report (RMR) on monthly and semi
annual basis consisting information of six key risks areas
Central Bank of the country is always cautious about (e.g. Credit Risk, Market Risk, Liquidity Risk, Operational
the need to keep the capital of individual Bank as per Risk, Foreign exchange risk and ICT risk) from all related
international standard and for this reason, Bangladesh divisions. Thereafter, it is presented in the monthly meeting
Bank has declared the roadmap for implementation of Risk Management Committee conducted under the
of BASEL III in banking sector effective from January supervision of Risk Management Division (RMD).
01, 2015. As per the phase wise arrangements for Basel-III
implementation the Bank has started implementing Basel- A report of the same is submitted to Bangladesh Bank and
III from January 2015. The Bank has taken initiatives to the decisions are communicated to relevant divisions of
improve the Capital to Risk Weighted Asset Ratio (CRAR) in the bank for implementation. Another half yearly report
line with the Basel-III guideline. Besides the Bank has also namely CRMR is also prepared by RMD. Different tools
started maintaining different ratios like Leverage Ratio, and techniques are applied to analyse data and to make
Liquidity Coverage Ratio (LCR), and Net Stable Funding recommendations. Horizontal and vertical analyses of
Ratio (NSFR) as per Basel-III requirement. monthly and half yearly data are used to compare the
development of each risk parameter. Recommendations
Stress Testing are made over the changes of the risk position of a
particular risk.
Stress Testing is one of the effective and popular ways
to alert bank management with regard to adverse Liquidity Ratios
unexpected outcomes related to variety of risks and
provides an indication how much capital adequacy ratio According to the revised road map issued vide BRPD
(CAR) might be needed to absorb losses, if any shocks Circular No.18/2014; banks have to maintain the minimum
occur. standard of Liquidity Coverage Ratio (LCR) and Net Stable
Funding Ratio (NSFR) from January 2015. The threshold
In the context of ICAAP under Pillar II of Basel III, banks limit for LCR has been fixed at 100% or more and for NSFR
consider Stress Testing as a diagnostic tool to improve it is greater than 100 %. Liquidity Coverage Ratio (LCR) is
the understanding of its risk profile. Bangladesh Bank the ratio of unencumbered High Quality Liquid Assets
has advised to conduct quarterly Stress Testing to (HQLA) to net cash outflows over the next 30 calendar
measure resilience of the Bank. Therefore as a part of risk days. Liquidity Coverage Ratio (LCR) is designed to test
management, the Bank prepares stress testing report a bank’s ability to withstand a liquidity crisis over a 30-
on quarterly basis to check out four major risks (interest day period. On the other hand, Net Stable Funding Ratio
rate risk, credit risk, equity price risk, liquidity risk) under (NSFR) aims to establish a minimum acceptable amount of
different levels of magnitude to ensure optimum allocation stable funding based on the liquidity characteristics of an
of capital across its risk profile. In Stress Testing of the Bank institution’s assets and activities over a one year horizon.
different analytical tools are used, like sensitivity analysis The amount of stable funding available is calculated
which assesses the impact on an institution’s financial through applying weights to different categories of
condition of a move in one particular risk factor, scenario liability which is then, compared with the amount of
test which tends to consider the impact of simultaneous stable funding required, calculated by applying weights
moves in a number of risk factors, and duration GAP to the institution’s assets and off-balance sheet items
analysis which is the analysis of the gap in duration including potential liquidity exposure
Prevention of Money
Laundering
Money Laundering (ML) and Terrorist Financing (TF) are The Group has strengthened its process of submitting
major threats to the world’s Financial Service Industry. CTR and STR through goAML Software set down by
Southeast Bank Group is pledge-bound not to allow BFIU. It has given added concentration on Customer Due
its banking channel to be used by any criminal, terrorist Diligence (CDD) Process. The CDD measures include KYC
or network of terrorists to carry out subversive activities Procedure, KYE Procedure, Customer Acceptance Policy,
or militancy in the country and elsewhere. The Bank is Customer Identification Process, Verification Process,
committed to ensuring the best corporate governance Transaction Monitoring, etc. SEBL is utilizing automated
practices and aims at protecting the Bank and its screening mechanism in respect of various Sanction Lists,
employees, shareholders, management and customers e.g. sanction lists of UNSCR, OFAC, AUSTRAC, EU, and local
from the adverse effect of ML and TF. Government. In this connection, the screening software
of the Group ‘S3’ for Core Banking Systems and ‘SWIFT’ for
Considering the social and political cost of ML and international transaction have been put in place and are
TF, Southeast Bank Group always attempts to thwart being used for combating the threats.
occurrence of both ML and TF in its day-to-day activities.
In order to be compliant with FATF recommendations, SEBL has also taken reasonable attempts to ensure
instructions and guidelines of BFIU and relevant laws and that all the officials are fully informed of the AML and
regulations, Southeast Bank Group is always sincere to the CFT Compliance requirements. The Group does never
implementation of its AML and CFT compliance program. excuse any violation of applicable legislations or rules or
In the recent past, the Group took a number of initiatives regulations or policies or procedures or industry guidance,
on the issue of AML and CFT compliance. etc relating to AML and CFT in the conduct of business of
the Group.
An eleven-member Central Compliance Unit (CCU) at
Head Office has been established to ensure compliance
with AML and CFT requirements properly. Anti-Money
laundering Division of the Bank is assisting the CCU
continuously. In this respect, the Chief Anti-Money
Laundering Compliance Officer (CAMLCO) leads CCU
and AMLD to ensure oversight of all aspects of the bank’s
AML and CFT activities including corrective actions to
be taken to address the deficiencies identified through
the inspection of BFIU, Independent Testing Procedure
and Self- Assessment Report. Deputy CAMLCO, Head of
Anti-Money Laundering Division and Branch Anti-Money
Laundering Compliance Officers (BAMLCOs) also exercise
care and caution to prevent acts of ML and TF through the
use of Southeast Bank Group service outlets.
Information Technology (IT) and

Cyber Security Measures
Information Technology in Banks has greatly contributed its network connectivity from Office LAN and internet
to improve operational efficiency, transparency, speed access of SWIFT user PCs and file sharing with other PCs
and accuracy in banking transactions. The customers have also been blocked. Several training on ICT Security
are benefited by getting a number of options for doing and Risk Management has been arranged throughout
banking through a different delivery channels according the year at the Training Institute of the Bank as part of
to their convenience. The business people are also getting awareness buildup among the employees of the Bank. As
benefit of faster realization of receivables from their clients the business processes and initiatives are now driven by IT,
and making payments to their suppliers instantly and therefore, the Bank will continue investing in IT to ensure
securely through various established payment channels. sound and secure IT operation.
This year, the Bank has scaled its technology infrastructure Internet Banking: The Bank is offering different services
to create a contemporary, secure and robust infrastructure to its clients, like inter-Bank Fund transfer, utility bill and
and taken several initiatives to protect its information student’s tuition fees payment. All these transactional
assets from cyber threats. SEBL has established its Data services have been secured through implementation
Center (DC) and Disaster Recovery Site (DRS) keeping of Hardware / Software token based Two Factor
in mind future expandability to meet emerging needs Authentication (2-FA). This year the Bank has brought
and for high availability. During setup of Data Center, more Utility Service Providers and Educational Institutions
environmental security has been provided highest under I-Banking service for utility bill and student’s tuition
priority. This year more manpower (experienced and fresh) fee payment at customer’s convenience from home or
has been recruited for capacity expansion of IT. The Core office. SEBL’s I-Banking module has further been upgraded
Banking Software (CBS) has been upgraded to its latest with more features and functionalities and to strengthen
release to enhance existing features and functionalities security to perform various financial transactions. SMS
and ensure transaction security. and E-Mail Alert services are available for any transaction
performed through online / Internet Banking or using
The Bank has reviewed its ICT infrastructure and taken Debit / Credit Card.
pragmatic steps to procure state of the art IT Security
solutions (Hardware and Software) for implementation The available transactional services are:
of multi-layer security with multiple security solutions
for Network, Mailing System, Web/Internet and the end Intra and Inter Bank Fund Transfer
users devices. Various policies and procedures including Utility Bills and Student Tuition Fees Payment
ICT Security Policy have been revised to minimize Mobile Air time Recharge
technological and operational risks and comply with
SEBL’s Credit Card Bill Payment
ICT Security Guideline-2015 of Bangladesh Bank. The
Business Continuity Plan (BCP) and Disaster Recovery FDR and Scheme Deposit Account Opening
Plan have also been revised. The SWIFT payment channel
has been reviewed and restructured through separating
BSEC Guidelines for Corporate Governance: Our Compliance Status of compliance with the conditions
imposed by Bangladesh Securities and Exchange Commission Notification No.SEC/CMRRCD/2006-158/134/
Admin/44 dated 07 August 2012
Compliance Status (Put √ in the

Condition
Title appropriate column) Remarks
No.
Complied Not complied
The number of the board members of the company
shall not be less than 5 (five) and more than 20
(twenty): Provided, however, that in case of banks
and non-bank financial institutions, insurance
companies and statutory bodies for which separate
1.1 primary regulators like Bangladesh Bank, Insurance √
Development and Regulatory Authority, etc. exist,
the Boards of those companies shall be constituted
as may be prescribed by such primary regulators
in so far as those prescriptions are not inconsistent
with the aforesaid condition.
At least one fifth (1/5) of the total number
1.2(i) of directors in the company’s board shall be √
independent directors.
Who either does not hold any share in the company
1.2(ii)(a) or holds less than one percent (1%) shares of the √
total paid-up shares of the company
Who is not a sponsor of the company and is not
connected with the company’s any sponsor or
director or shareholder who holds one percent
(1%) or more shares of the total paid-up shares of
the company on the basis of family relationship.
1.2(ii)(b) √
His/her family members also should not hold
above mentioned shares in the company Provided
that spouse, son, daughter, father, mother, brother,
sister, son-in-law and daughter-in-law shall be
considered as family members
who does not have any other relationship, whether
1.2(ii)(c) pecuniary or otherwise, with the company or its √
subsidiary/associated companies;
who is not a member, director or officer of any
1.2(ii)(d) √
stock exchange;
who is not a shareholder, director or officer of any
1.2(ii)(e) member 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
1.2(ii)(f ) √
(three) years of the concerned company’s statutory
audit firm;
who shall not be an independent director in more
1.2(ii)(g) √
than 3 (three) listed companies;
who has not been convicted by a court of
competent jurisdiction as a defaulter in payment
1.2(ii)(h) √
of any loan to a bank or a Non-Bank Financial
Institution (NBFI);
who has not been convicted for a criminal offence
1.2(ii)(i) √
involving moral turpitude
The independent director(s) shall be appointed
1.2(iii) by the board of directors and approved by the √
shareholders in the Annual General Meeting (AGM).

Condition
No.
The post of independent director(s) cannot remain No such event
1.2(iv) N/A
vacant for more than 90 (ninety) days. occurred
The Board shall lay down a code of conduct of all
1.2(v) Board members and annual compliance of the √
code to be recorded.
The tenure of office of an independent director
1.2(vi) shall be for a period of 3 (three) years, which may √
be extended for 1 (one) term only.
Independent Director shall be a knowledgeable
individual with integrity who is able to ensure
1.3(i) compliance with financial, regulatory and corporate √
laws and can make meaningful contribution to
business.
The person should be a Business Leader/Corporate
Leader/ Bureaucrat/ University Teacher with
Economics or Business Studies or Law background
/Professionals like Chartered Accountants, Cost &
1.3(ii) √
Management Accountants, Chartered Secretaries.
The independent director must have at least
12 (twelve) years of corporate management/
professional experiences.
In special cases the above qualifications may
1.3(iii) be relaxed subject to prior approval of the N/A
Commission.
The Position of the Chairman of the Board and
1.4 Chief Executive Officer of the company shall be √
filled by different individuals.
Industry outlook and possible future developments
1.5(i) √
in the industry.
1.5(ii) Segment-wise or product-wise performance. √
Presented in
1.5(iii) Risks and concerns. √
note 3.20
A discussion on Cost of Goods sold, Gross Profit
1.5(iv) √
Margin and Net Profit Margin
Discussion on continuity of any Extra-Ordinary gain
1.5(v) N/A
or loss.
Basis for related party transactions- a statement of
Presented in
1.5(vi) all related party transactions should be disclosed in √
note 69.3.1
the annual report
Utilization of proceeds from public issues, rights
1.5(vii) N/A
issues and/or through any others instruments.
An explanation if the financial results deteriorate
after the company goes for Initial Public Offering
1.5(viii) N/A
(IPO), Repeat Public Offering (RPO), Rights Offer,
Direct Listing, etc.
If significant variance occurs between Quarterly
Financial performance and Annual Financial
1.5(ix) N/A
Statements the management shall explain about
the variance on their Annual Report.
Remuneration to directors including independent
1.5(x) √
directors

Condition
No.
The financial statements prepared by the
management of the issuer company present fairly
1.5(xi) √
its state of affairs, the result of its operations, cash
flows and changes in equity.
Proper books of account of the issuer company
1.5(xii)
have been maintained.
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.
International Accounting Standards (IAS)/
Bangladesh Accounting Standards (BAS)/
International Financial Reporting Standards (IFRS)/
Bangladesh Financial Reporting Standards (BFRS),
1.5(xiv) √
as applicable in Bangladesh, have been followed
in preparation of the financial statements and
any departure there-from has been adequately
disclosed.
The system of internal control is sound in design
1.5(xv) and has been effectively implemented and √
monitored.
There are no significant doubts upon the issuer
company’s ability to continue as a going concern.
1.5(xvi) If the issuer company is not considered to be a √
going concern, the fact along with reasons thereof
should be disclosed.
Significant deviations from the last year’s operating
1.5(xvii) results of the issuer company shall be highlighted √
and the reasons thereof should be explained.
Key operating and financial data of at least
1.5(xviii) √
preceding 5 (five) years shall be summarized
If the issuer company has not declared dividend
1.5(xix) (cash or stock) for the year, the reasons thereof shall N/A
be given.
The number of Board meetings held during the
1.5(xx) year and attendance by each director shall be √
disclosed.
Parent/Subsidiary/Associated Companies and
1.5(xxi)(a) √
other related parties (name wise details);
Directors, Chief Executive Officer, Company
Secretary, Chief Financial Officer, Head of Internal
1.5(xxi)(b) √
Audit and their spouses and minor children (name
wise details);
1.5(xxi)(c) Executives; √
Shareholders holding ten percent (10%) or more
1.5(xxi)(d) √
voting interest in the company (name wise details).
1.5(xxii)(a) a brief resume of the director; √
nature of his/her expertise in specific functional
1.5(xxii)(b) √
areas;
Names of companies in which the person also
Presented-in
1.5(xxii)(c) holds the directorship and the membership of √
Annexure - F
committees of the board.

Condition
No.
The company shall appoint a Chief Financial Officer
(CFO), a Head of Internal Audit (Internal Control and
Compliance) and a Company Secretary (CS). The
2.1 √
Board of Directors should clearly define respective
roles, responsibilities and duties of the CFO, the
Head of Internal Audit and the CS
The CFO and the Company Secretary of the
companies shall attend the meetings of the Board
of Directors, provided that the CFO and/or the
2.2 Company Secretary shall not attend such part of √
a meeting of the Board of Directors which involves
consideration of an agenda item relating to their
personal matters
The company shall have an Audit Committee as a
3(i) √
subcommittee of the Board of Directors.
The Audit Committee shall assist the Board of
Directors in ensuring that the financial statements
3(ii) reflect true and fair view of the state of affairs of √
the company and in ensuring a good monitoring
system within the business.
The Audit Committee shall be responsible to
3(iii) the Board of Directors. The duties of the Audit √
Committee shall be clearly set forth in writing.
3.1(i) Constitution of Audit Committee √
Inclusion of independent Director on the Audit
3.1(ii) √
Committee
All members of the Audit Committee are ˝financially
3.1(iii) √
literate˝
When the term of service of the Committee
members expires or there is any circumstance
causing any Committee member to be unable to
hold office until expiration of the term of service,
thus making the number of the Committee
members to be lower than the prescribed number
3.1(iv) √
of 3 (three) persons, the Board of Directors shall
appoint the new Committee member(s) to fill up
the vacancy(ies) immediately or not later than
1 (one) month from the date of vacancy(ies)
in the Committee to ensure continuity of the
performance of work of the Audit Committee.
The company secretary shall act as the secretary of
3.1(v) √
the Committee.
The quorum of the Audit Committee meeting shall
3.1(vi) not constitute without at least 1 (one) independent √
director
3.2(i) Chairman of the Committee √
Presence of the Chairman of the Audit Committee
3.2(ii) √
in the AGM
3.3(i) Oversee the financial reporting process. √
Monitor choice of accounting policies and
3.3(ii) √
principles.
3.3(iii) Monitor Internal Control Risk management process. √

Condition
No.
Oversee hiring and performance of external
3.3(iv) √
auditors.
Review along with the management, the annual
3.3(v) financial statements before submission to the √
board for approval.
Review along with the management, the quarterly
3.3(vi) and half yearly financial statements before √
submission to the board for approval.
3.3(vii) Review the adequacy of internal audit function √
Review statement of significant related party
3.3(viii) √
transactions submitted by the management.
Review Management Letters/ Letter of Internal
3.3(ix) √
Control weakness issued by statutory auditors.
When money is raised through Initial Public Offering
(IPO)/Repeat Public Offering (RPO)/Rights Issue the
company shall disclose to the Audit Committee
about the uses/applications of funds by major
category (capital expenditure, sales and marketing
3.3(x) expenses, working capital, etc), on a quarterly basis, √
as a part of their quarterly declaration of financial
results. Further, on an annual basis, the company
shall prepare a statement of funds utilized for
the purposes other than those stated in the offer
document/prospectus.
The Audit Committee shall report on its activities to
3.4.1(i) √
the Board of Directors.
3.4.1(ii)(a) report on conflicts of interests; N/A
suspected or presumed fraud or irregularity or
3.4.1(ii)(b) N/A
material defect in the internal control system;
suspected infringement of laws, including
3.4.1(ii)(c) N/A
securities related laws, rules and regulations;
any other matter which shall be disclosed to the
3.4.1(ii)(d) N/A
Board of Directors immediately
3.4.2 Reporting to the Authorities N/A
Reporting to the Shareholders and General
3.5 -
Investors
4(i) Appraisal or valuation services or fairness opinions. √
Financial information systems design and
4(ii) √
implementation.
Book-keeping or other services related to the
4(iii) √
accounting records or financial statements.
4(iv) Broker-dealer services. √
4(v) Actuarial services. √
4(vi) Internal audit services. √
Any other service that the Audit Committee
4(vii) √
determines
No partner or employees of the external audit firms
shall possess any share of the company they audit
4(viii) √
at least during the tenure of their audit assignment
of that company.
Audit/Certification Services on Compliance of the
4(ix) √
corporate Governance as required.

Condition
No.
Provisions relating to the composition of the Board
of Directors of the holding company shall be made
5(i) N/A
applicable to the composition of the Board of
Directors of the subsidiary company.
At least 1 (one) independent director on the Board
of Directors of the holding company shall be a
5(ii) N/A
director on the Board of Directors of the subsidiary
company
The minutes of the Board meeting of the subsidiary
5(iii) company shall be placed for review at the following √
Board meeting of the holding company
The minutes of the respective Board meeting of
the holding company shall state that they have
5(iv) √
reviewed the affairs of the subsidiary company
also.
The Audit Committee of the holding company shall
5(v) also review the financial statements, in particular √
the investments made by the subsidiary company.
these statements do not contain any materially
6(i)(a) untrue statement or omit any material fact or √
contain statements that might be misleading;
these statements together present a true and fair
view of the company’s affairs and are in compliance
6(i)(b) √
with existing accounting standards and applicable
laws.
There are, to the best of knowledge and belief, no
transactions entered into by the company during
6(ii) √
the year which are fraudulent, illegal or violation of
the company’s code of conduct.
The company shall obtain a certificate from a
practicing Professional Accountant/Secretary
(Chartered Accountant/ Cost and Management
Accountant/Chartered Secretary) regarding
7(i) √
compliance of conditions of Corporate Governance
Guidelines of the Commission and shall send the
same to the shareholders along with the Annual
Report on a yearly basis.
The directors of the company shall state, in
accordance with the Annexure attached, in
7(ii) √
the directors’ report whether the company has
complied with these conditions.
Compliance of 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.
Compliance
Sl No. Particulars Remarks
Status
Constitution of Board of Directors
For appointment of new Directors and removal of Directors Bangladesh
√
Bank’s approval to be obtained.
1. Eligibility and Qualification of Directors, maximum number of Directors
√
on the Board of Directors.
Appointment of Independent Director. √
Maximum 2 Directors from one family. √
Appointment of New Directors
Section 15.4 of Bank Company (Amendment) Act-2013 requires that
1.1 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 Vacancy of Office of a Director
(a) Vacancy as per Section 108 (i) of Companies Act 1994 and Vacancy
No such event
as per Section 17 of Bank Company Act 1991.
(b) i) Bar to become a Director who was removed by operation of
No such event
Section 17 of Bank Company Act 1991.
ii) Bar to transfer share by a Director who was removed by
No such event
operation of Section 17 of Bank Company Act 1991.
Removal of Director and dissolution of the Board by Bangladesh
C No such event
Bank.
Removal of Directors and Dissolution of the Board
1.3 No such event
For removal of a Director, Bangladesh Bank’s approval to be obtained.
1.4 Appointment of Alternate Directors
(a) To appoint alternate director in place of original Director,

documentary evidence of foreign visit and return of original
No such event
Director shall be kept in records. Any deviation from this shall be
reported to Bangladesh Bank by the Bank’s Chief Executive Officer.
(b) Copy of resolution for appointment of Alternate Director by the
Board of Directors along with original Director’s probable date of No such event
return are to be sent to Bangladesh Bank.
(c) Any loan defaulter and anybody who is not eligible to be appointed
as Director under Bank Company Act or Companies Act or any No such event
other law or rules shall not be appointed as Alternate Director.
(d) No Alternate Director shall be appointed as a member of any There is no Alternate
committee of the Board of Directors. Director on the
Board of SEBL
(e) No credit facilities to Alternate Director or to entities where he has
√ No such event
interest shall be allowed.
All requirements of Law, Rules and Directives applicable to a
√ No such event
Directors are also equally applicable to an Alternate Director.
2. Depositor Director
No requirement for appointment of Depositor Director. The tenure of √
office of current Depositor Directors shall be determined by the Board.
Compliance
Status
3. Particulars of Directors
(a) Updated list of Directors; √
(b) Distribution of list of Directors to the scheduled Banks and NBFIs √
(c) Updated profile of Directors in the website. √
4. Responsibility and Power of the Board of Directors
Board of Directors is responsible for policy framing and
√
implementation, Risk Management, Internal Control, Internal Audit
and ensuring compliance of Internal Audit objections etc.
4.1 Responsibility and Powers of the Board of Directors
(a) Work Plan 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
Board of Directors shall approve re-schedule & write off of
i) √
credit within existing Laws and Rules & Regulations.
Board shall delegate power to approve credit/investment. √
All policies relating to credit evaluation sanction, recovery
√
re-schedule and write-off shall be approved by the Board.
ii) Board of Directors review Risk Management Policy on quarterly
√
basis
Implementation of guidelines of Bangladesh Bank about major
√
risks shall also be monitored by the Board.
(c) Management of Internal Control
Board of Directors shall closely monitor Internal Control System
in order to maintain qualitative standard of Credit/Investment.
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 Resource Management and Development of
Human Resource
i) All policies and service Rules relating to Human Resources
√
of the Bank shall be approved by the Board.
The appointment, promotion, transfer and disciplinary
action against an executive up to two grades below the √
CEO shall made/taken by the Board.
ii) Board of Directors shall give special emphasis on Training
for enhancement of capability of Bank’s Executives and
√
Officers for accurate assessment of Credit/Investment
proposals.
Modern electronic and information technology and
Management Information System (MIS) shall be stressed √
up and included in the annual work-plan.
Compliance
Status
iii) Board of Directors shall devise Code of Ethics for all grades
of Executives and Officers and it should be meticulously √
complied with by all Executives and Officers.
Board of Directors shall promote high ethical standard for
the purpose of developing a culture of compliance in the √
Bank.
(e) Financial Management
i) Bank’s Annual Budget and Statutory Financial Statements
shall be prepared with the approval of the Board of
Directors. Bank’s Income, Expenditure, Liquidity, Expired
√
/ Unrecovered Loans, Capital Base and Capital Adequacy,
Provision, classified loans etc must be reviewed by the
Board on quarterly basis.
ii) Purchase and Procurement Policy shall be devised by the
√
Board of Directors.
Delegation of powers in this behalf shall be approved by
√
the Board.
Board’s prior approval shall be required to purchase Land,
Building, Establishment, construction, Vehicle etc on √
business consideration.
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
Board of Director shall appoint a honest, skilled, experienced
√
and a suitable person as Chief Executive Officer. Appointment
of CEO shall require Bangladesh Bank’s approval.
(g) Board’s added Duty
Board shall ensure proper execution and compliance of any √
duty vested upon it by Bangladesh Bank.
4.2 Meeting of Board of Directors
One meeting of the Board in each month and if required more than
one meeting in a month.
But minimum one meeting of the Board shall be held in a quarter.
4.3 Responsibilities of Chairman of Board of Directors
(a) Chairman’s area of activities. √
(b) He may visit a branch or Bank’s financial project. √
He may order for an enquiry, if required. √
He may take actions through the CEO with the approval of the
√
Board.
(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. Constitution of Supporting Committee
Every Bank Company shall constitute one Executive Committee, one
Audit Committee and one Risk Management Committee consisting
of members of the Board of Directors.
5.1 Executive Committee
In order to resolve urgent matters and day to day or / routine work
during interval of meeting of Board of Directors, it shall constitute an √
Executive Committee.
(a) Structure √
Compliance
Status
(b) Eligibility of the Members of the Executive Committee √
(c) Responsibilities and Duties of the Executive Committee √
(d) Calling Meeting of the Executive Committee √
5.2 Audit Committee
Audit Committee to be constituted to carry out supervisory role on
presentation of Financial Reports, Internal Control System, Auditing
√
System, compliance of existing Laws and Rules and Regulations of
regulators.
(a) Structure √
(b) Qualification of Members of Audit Committee √
(c) Duties and Responsibilities of the Audit Committee √
(A) Internal Control √
(B) Publication of Financial Reports √
(C) Internal Audit √
(D) External Audit √
(E) Compliance of existing Laws and Rules √
(F) Miscellaneous Work √
(d) Calling Meeting of the Audit 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,
Operation Risk, Interest Rate Risk, Liquidity Risks shall be looked after
by the Risk Management Committee etc.
(a) Structure √
(b) Qualification of Committee Members √
(c) Responsibilities and Duties of the Risk Management Committee √
(A) Risk Identification and Control Strategy √
(Av) Preparation of Organizational Structures
√
(B) Review of Risk Management Policy and approval
(C) Preparation of Information and Reporting System √
(D) Supervision of Implementation of Overall Risk Management
√
Policy
(E) Miscellaneous Work √
(d) Calling Meeting of the Risk Management Committee √
6. Training of Directors √
This Circular is issued to implement Section 15, 15 Kha and 15 Ga of
7. - -
Bank Company (Amended) Act, 2013.
with immediate
8. Enforcement of the Circular. -
effect
BRPD Circular No.18 of 27th October 2013 Appointment and responsibilities of Chief Executive Officer (CEO)
Sl. Compliance
Particulars
No. Status
A Rules and regulations for appointment of the 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:
a) He has not been convicted by any Criminal Court of Law.
Complied
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 have a Master’s Degree at minimum from any recognized university. Higher academic
education in the field of Economics, Banking and Finance or Business Administration will be
Complied
treated as additional qualification for the concerned person.
c) In respect of service, the concerned person should have excellent track 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.
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 making 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 deferred payment to creditors or has not compromised with his creditors to be
relieved from debts or he is not a loan defaulter.
c) He is not a tax defaulter.
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
Complied
candidate has less than 3 years left to attain 65 years, he/she can be appointed for the shorter person.
6 Guidelines in fixing the salary and allowance: Banks are required to follow the guidelines stated
Complied
below while determining the salary and allowances of the CEO and submitting such proposals to BB.B.
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
Complied
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.
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 Complied
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.
c) Without improving the bank’s major financial indicator like-CAMELS, annual salary increment
Complied
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 Complied
made for re-fixation of the salary considering the work performance of the current CEO.
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 Complied
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
Complied
pay it.
Sl. Compliance
Particulars
No. Status
7 Inventive Bonus: The CEO will gent incentive bonus subject to paying incentive bonus to all
executives/officers/workers of the bank and the said bonus amount will not exceed BDT 1,000,000 Complied
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 Board formed Committee meeting
9 Evaluation Report: For reappointment of the CEO, the Chairman of the bank shall have to submit a
Complied
Board approved evaluation report to BB.
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 2013). For
processing such approval, along with the proposal signed by the Chairman of the BoD, the selected
Complied
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 such appointed cannot be terminated, released or removed from his/her Complied
office without prior approval from BB.
B Responsibilities and Authorities of the CEO: The CEO of the bank, whatever name called, shall
Complied
discharge the responsibilities and exercise the authorities as follows:
a) In terms of the financial, business and administrative authorities vested upon him by the BoD,
the CEO shall discharge his own responsibilities. He shall remain accountable for achievement
Complied
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
Complied
regulations in discharging routing functions of the bank.
c) The CEO include clearly any violation from Bank Company Act 1991 and/or other relevant
laws and regulations in the “Memo” presented to the meeting of the BoD or any other Complied
Committee(s) engaged by the BoD.
d) The CEO shall report to Bangladesh Bank of issues in violation of the Bank Company Act 1991
Complied
or of 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
Complied
service rules on the basis of the human resources policy and approved delegation of
employees as approved by the BoD.
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 BoD, he/she shall nominate officers for training etc.
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.
Compliance
Status
A Rules and regulations for appointment of an Advisor
1 Experience and Suitability Complied
Responsibilities of the Advisor: The roles and responsibilities

of the Advisor are defined specifically. The Advisor can advise the
2 Complied
Board of Directors or CEO only on those matters specified in the
appointment letter.atters specified in the appointment letter.
3 Prior approval from Bangladesh Bank Complied
4 Remuneration and other facilities of Advisor Complied
Tenure of Advisor: The tenure of the Advisor shall be maximum

5 Complied
01(one) year which is renewable.
Appointment of Former-executive: For ensuring good

governance, any former Director, CEO or any other Executive of the
6 Complied
bank will not be eligible to become an Advisor in the same bank
immediately after their retirement or resignation.
B Rules and regulations for appointment of a Consultant
Terms of reference of Consultant: Consultant can be appointed

1 for specialized tasks like tax, law and legal procedures, engineering Complied
and technical works, information technology, etc.
Responsibilities of a Consultant: The responsibilities or terms of

2 reference of a Consultant are specified. He does not involve in any Complied
activities beyond his terms of references.
Appointment of a Consultant: A Consultant can be appointed

No Consultant in
with the approval of the BoD. After such appointment the bank shall
3 Complied office as on 31st
send the Consultant’s complete resume, terms of reference and
December 2016.
details of remuneration to Bangladesh Bank immediately.
Tenure of a Consultant: The tenure of a Consultant should be

4 consistent with the terms of reference but would not exceed 02 Complied
(two) years.
5 Remuneration/honorarium of a Consultant Complied
Appointment of Former-executive: For ensuring good

governance, any former Director, CEO or any other Executive of the
6 Complied
bank will not be eligible to appointment as a Consultant in the same
bank immediately after their retirement or resignation.
Certificate of MANCOM Regarding the

Effectiveness of Internal Control Policy,
Practice and Procedure
March 27, 2016
Internal Control is a process effected by the Board of The Management Committee is satisfied that Internal
Directors, Senior Management and personnel of all levels. Control Policy, Practice and Procedure of the Bank are
It is not solely a procedure or policy that is performed at effective and these provide a reasonable assurance
a certain point of time rather it is continually operating at in achieving objectives of the Bank in respect of (i)
all levels within the Bank. As per guidelines of Bangladesh reliability of the financial information; (ii) effectiveness and
Bank, the Board of Directors and Senior Management efficiency of operations; (iii) compliance with applicable
are required to take appropriate steps for establishing laws and regulations; (iv) adherence to management
appropriate culture to facilitate an effective internal policies; (v) safeguarding of Bank’s assets; (vi) prevention
control process and for monitoring its effectiveness on and detection of fraud and errors; and (vii) accuracy
an ongoing basis; however, each individual within the and completeness of the accounting records. However,
organization must participate in the process. internal control environment of the Bank will further be
strengthened after implementation of the processes as
The MANCOM received an updated “Review Report on mentioned in the revised “Guidelines on Internal Control
the Risk Management of Internal Control & Compliance of and Compliance in Banks” provided by Bangladesh Bank
the Bank” and reviewed the internal control mechanism vide BRPD Circular No.03 dated 08.03.2016.
in place and different issues on risk management of
Internal Control and Compliance, e.g appropriateness and
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 Shahid Hossain
the key points of Bangladesh Bank’s last inspection report Managing Director
on ICC of the Bank alongwith the Bank’s compliance (Former)
thereof.
Credit Rating on the

Bank
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, 2015
and unaudited financials up to 31st March, 2016 and other relevant qualitative as well as quantitative information up to
the date of rating.
Surveillance Rating
Explanation
Rating (2014) Rating (2015)
Long Term Long Term The Bank rated AA (High Safety) in credit rating is adjudged to be
AA AA of high quality, offers higher safety and has high credit quality. This
Double A Double A level of rating indicates a corporate entity with a sound credit profile
(High Quality and High (High Quality and High and without significant problems. Risks are modest and may vary
Safety) Safety) slightly from time to time because of economic conditions.
The Bank rated ST-2 (High Grade) in the short term in credit rating
Short term Short term
is considered to have high certainty of timely payment. Liquidity
ST-2 ST-2
factors are strong and supported by good fundamental protection
High Grade High Grade
factors. Risk factors are very small.
Outlook Stable
Date of Rating June 23, 2016
Validity Up to June 22, 2017

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 lastly re-constituted by the Board of Directors in its 486th meeting held on April 11, 2016. The
membership and attendance of the members of the Audit Committee are given below:
Sl. Meetings
Members Position Attendance Remarks
No held
Mr. A.H.M. Moazzem Hossain a) The Members who could not
1. Chairman 6 6
(Independent Director) attend any meeting were granted
2. Mrs. Duluma Ahmed Member 6 5 leave of absence.
3. Mrs. Jusna Ara Kashem Member 6 5 b) Mrs. Rehana Rahman was
4. Mrs. Rehana Rahman Member 6 5 appointed member of the Audit
Committee on 11-04-2016.
5. Mrs. Sirat Monira Member 6 1
c) Mrs. Sirat Monira ceased to be
member of the Audit Committee
on 11-04-2016.
6. Member 6 4 d) Dr. Quazi Mesbahuddin Ahmed
(Independent Director)
was appointed member of the
Audit Committee on11-04-2016
Quorum ii. Presence of 03 (three) members shall form quorum.

Presence of 3 (three) members constitutes quorum for iii. The tenure of office of the Audit Committee shall be
validly holding a meeting of the Audit Committee. for 3 years.
Head of Internal Control and Compliance of Head iv. The Company Secretary shall act as Secretary to the
Office attended the meeings to present the agenda. On Audit Committee.
invitation, Senior Executives of the Bank including the
v. The terms of reference of the Audit Committee
Managing Director, Chief Financial Officer (CFO) and Head
shall also be as specified in the BRPD Circular
of Risk Management Division attended the meetings to
No.11 dated October 27, 2013 of Bangladesh Bank
meet instant queries of the Audit Committee to make
and provisions contained in Notification No.SEC/
its decisions fact-based. In addition, Heads of Branches
CMRRCD/2006-158/134/Admin 144 dated 07
whose audit reports were placed to the Audit Committee
August, 2012 of Bangladesh Securities and Exchange
were also present in the meetings to respond to the issues
Commission (BSEC).
raised in the reports of Internal Control and Compliance
Division. vi. Mr. Zakir Ahmed Khan, Advisor of the Bank, shall
remain present in every meeting of the Audit
Terms of Reference of the Audit Committee
Committee as far as possible and shall give his advice
i. Mr. A.H.M. Moazzem Hossain, in his capacity as the and suggestions for improvement of Bank’s operations
Independent Director, shall be the Chairman of the and strict compliance of rules of both the Bank and its
Audit Committee. regulators.
Charter of the Audit Committee to report to the Bangladesh Securities and Exchange
Commission about anything which has material impact
The Audit Committee is constituted by the Board of
on the financial condition and result of operation of the
Directors for the primary purpose of assisting the Board in :
Bank. But such reporting was not necessitated in 2016 as
Overseeing the integrity of the company’s financial nothing which has/had material impact on the financial
statement. condition and results of operation had occurred in the
Bank during the year 2016.
Overseeing the improvement of corporate governance
standard of the company.
Deliberations of the Audit Committee in 2016
Overseeing the Company’s system of disclosure,
During the year 2016, the Audit Committee carried out its
internal controls and procedure.
regular functions on areas pertaining to its responsibilities.
Overseeing Bank’s internal control over financial The issues it discussed and the decisions it took for
reporting. improvement of operational performance of the Bank are
listed below:
Overseeing Bank’s compliance with ethical standards
adopted by the company. i. The Inspection plan of the Bank for the year 2016 was
Making reports and recommendations to the Board. approved.
Roles and Responsibilities ii. Management Information System (MIS) Report for the
year 2015 was reviewed by the Audit Committee and
The role of Audit Committee is to assist the Board in suitable decisions were given.
discharging its duties and responsibilities for financial
reporting, corporate governance, internal control, green iii. The Audit Committee reviewed the status of key
banking, and environmental and climate change risks. financial and business indicators of Bank and thanked
The added roles of the Audit Committee include, but not the Management for the good work on Management
limited to, the followings: Information System (MIS).
i. Overseeing the financial reporting process. iv. Position of classified, re-scheduled and written-off
loans of the Bank was repeatedly discussed. The Audit
ii. Monitoring choice of accounting policies and
Committee advised to bring down classified loans by
principles.
recovery and regularization. It also advised for recovery
iii. Monitoring Internal Control Risk Management process. of written-off loans and regularization of re-scheduled
iv. Overseeing hiring and performance of external loans.
auditors. v. The Committee studied the status of collaterals held
v. Reviewing the annual financial statements before against classified loans and gave its decisions for
submission to the Board for approval. improving and strengthening security back up against
loans and advances.
vi. Reviewing the quarterly and half yearly financial
statements before submission to the Board for vi. The Committee recommended for appointment of
approval. bank’s external auditors for the year 2016.
vii. Reviewing the adequacy of internal audit functions. vii. The Audit Committee minutely examined the Head
Office Comprehensive Inspection Reports on Bank’s
viii. Reviewing statement of significant party transactions
different branches and gave suitable decisions.
submitted by the management.
ix. Reviewing Management Letters/ Letter of Internal viii. The Audit Committee examined the certificate of the
Control Weakness issued by Statutory Auditors. Management Committee regarding the effectiveness
of Internal Control, Policy, Practice and Procedures.
x. Reviewing the raising of fund through Repeat Public
Offering/ Rights Issue and its use and application. ix. The Audit Committee reviewed periodic recovery
positions of the Bank against classified, re-scheduled
xi. Monitoring internal control process.
and written-off loans and gave suitable decisions.
xii. Maintaining oversight regulatory compliance, ethics
x. The Audit Committee periodically examined position
and whistleblower hotlines
of classified loans and provision requirement there
xiii. Reviewing Audit Committee’s own terms of reference. against. Accordingly, it gave suitable decisions.
Reporting of the Audit Committee xi. The Audit Committee reviewed the quarterly, half
yearly and annual financial statements before their
The Audit Committee reported its findings and
submission to the Board for final review and approval.
observations to the Board of Directors. It is also required
xii. The Audit Committee reviewed the report on the xx. The Audit Committee advised the Management to
position of Southeast Bank Ltd. (Health Report) and correctly assess fund requirement of a borrower and to
gave suitable decisions for improving the Bank’s refrain from allowing high exposure disproportionate
Financial Health (CAMELS Rating). to business needs in an account.
xiii. The Committee reviewed the Bank’s Self Assessment xxi. The Committee expressed the considered opinion
of Anti-Fraud Internal Controls and advised to put that Special Mention Accounts (SMAs) need to be
in place enough control measures following the effectively monitored for their timely regularization.
guidelines given by the Bangladesh Bank to avert Appraisals of such loans are done by the concerned
attempts of frauds and forgeries in the Bank. credit officers. Hence, they shall monitor the respective
SMA Accounts. The system of monitoring of SMAs be
xiv. The Audit Committee thoroughly reviewed the
effectively put in place and supervised.
progress report of task forces on recovery of classified,
written off and rescheduled loans and gave its xxii. The Audit Committee advised that office orders of
decisions for improving and strengthening recovery dismissal/termination of officials for gross misconduct
efforts substantially. should be copied to appropriate authorities and
circulated through the internal web-portal of the Bank
xv. The Audit Committee thoroughly reviewed the
for information of all after observing due procedures.
findings of the Bangladesh Bank Inspection Team
on different branches and instructed management Report to the Board
to take appropriate actions to prevent repetition of
All findings and decisions of the Audit Committee were
lapses identified in their inspection reports.
reported to the Board and the Board closely reviewed
xvi. The Audit Committee reviewed the Annual Summary them.
Report on Audit Findings-2015 and advised for strong
Minutes of Audit Committee to Bangladesh Bank
monitoring of non-performing loans of different
branches for their timely adjustment and turning The minutes of meetings of the Audit Committee were
them into performing loans. The Committee also sent to Bangladesh Bank for their information.
advised to obtain additional collateral against the loan
Reporting to the Regulatory Authorities
where there is no collateral or inadequate collateral on
best effort basis to safeguard Bank’s interest. There had not been any occurrence in the Bank that
required reporting to the relevant authorities by the Bank’s
xvii. The Committee carried out in-depth review of audit
Audit Committee.
findings of the Branches in pursuance of the respective
Heads of Branches and gave directives to rectifying
the lapses / irregularities within the deadlines set by
the Committee.
xviii. The Committee reiterated its decision about zero
tolerance to repetition of lapses identified by the
Chairman
Bangladesh Bank Inspection Team as well as ICCD.
xix. The Committee advised that recovery drives be geared
up by strengthening and, where necessary, by further
streamlining the system of recovery.
Internal Control and

Compliance
Effective internal control is essential to a bank for efficient Establish Annual Inspection Plan.
management of its risks. It is commonly agreed that a
Review of Annual Summary Report of the lapses/
bank requires a strong and effective system of internal
irregularities raised in the Internal Inspection Reports.
controls to ensure operation of the bank safely and
soundly. Indeed, internal control is the foundation of safe Review of Annual Health Report of the bank.
and sound banking. A good system of internal controls,
Review of safety and security issues of the bank etc.
when properly designed and consistently enforced, will
broadly facilitate the management to:
The management of SEBL has put in place a successful and
effective system of internal control in line with standard
Safeguard the bank’s resources;
guidelines and guidance note of Bangladesh Bank in order
Ensure effective and efficient operations of the bank; to control and mitigate the risks of Internal Control and
Compliance as well as to keep the bank on sound course
Achieve the goals and objectives of the bank;
toward profitability goals, achievement of its mission and
Enforce efficient managerial guards; improvement of its performance. The aspects of SEBL
relating to risk control and mitigation are as under:
Produce reliable financial information and reports;
Comply with applicable laws, regulations and internal Control Environment: An appropriate and effective
policies of the bank; internal control environment is in place to ensure
Become responsive to the changes so that the bank that the bank is managed and controlled in a
can adapt such changes quicker than its competitors; sound and prudent manner. The Board of Directors
of the bank is actively concerned with sound
Reduce the possibility of significant errors and corporate governance and diligently discharging
irregularities and help in timely detection thereof; its responsibilities. Bank Management proactively
Early detect fraud / forgeries and protect the bank discharges their responsibilities and supervises the
from financial loss there against, etc. activities of the bank.
Control Activities and Segregation of Duties: The

Southeast Bank Ltd. (SEBL) has established the following
management of SEBL has set up an appropriate
Internal Control Cycles or pre-defined Procedures, i.e
control structure with control activities defined
Compliance Review Work Program to identify and measure
at every business level, i.e. top level review and
the risk of internal control and compliance of the bank:
appropriate activity control for different divisions/
units and branches/departments. The management
Define terms of reference through adopting relevant
has also established an appropriate segregation of
policy, manuals, processes, procedures and practices.
duties with necessary authority, job description/flow
Evaluate the control function through establishing chart of works etc. to maintain an effective internal
Departmental Control Function Checklist control structure.
(DCFCL), Quarterly Operation Report (QOR), Loan
Documentation Checklist (LDC). Management Information System: SEBL has
established an effective management information
Utilize the approved Methodology of Risk Assessment system to support the organizational and procedural
for undertaking Risk Based Inspection. controls. SEBL uses a new version of Core Banking
Evaluate the effectiveness of internal control system Software (CBS) named ‘Bank ULTIMUS’. Access control
through establishing MANCOM Certificate. of the CBS is properly defined and exercised. Data
Center for backup of data and information has been
Review of periodical self assessment of Anti-Fraud
established. Testing of system’s backup procedure
Internal Control Report.
and contingency plan are done regularly.
Monitoring of Activities and Correcting Deficiencies: to contribute positively towards strengthening the
The activities of SEBL are monitored on an ongoing system of managing the risk of Internal Control &
basis so that adopted policy, manuals, processes, Compliance of the bank. They utilize the various
procedures and practices are being adhered to. Key internal control cycle, i.e. compliance review work
and high risk items are identified and monitored as program to evaluate the adequacy and effectiveness
part of daily activities and periodical evaluation is of internal controls in the operation and business
done by the business lines and internal inspection process of the bank.
team. Internal control deficiencies identified by
business lines, internal control team or other control Inspection Teams of ICCD of SEBL carry out risk based
personnel are reported timely and promptly to the surprise and comprehensive inspection, special inspection,
appropriate management level and addressed investigation, IT inspection on different Branches and
immediately. Divisions at Head Office of the Bank and submit report
thereof. They also conduct independent testing on AML
Independent Audit Mechanism: SEBL has established and CFT compliance at branch level. Necessary remedial
an independent audit/inspection mechanism to measures/corrective steps are taken on the suggestions/
monitor the effectiveness of the organizational and observations made in the said reports. The summary of
procedural controls of the Bank. Internal Control key points of the reports are also presented and discussed
and Compliance Division of the Bank with its three in the meeting of the Audit Committee of the Board of
units (Compliance Unit, Monitoring Unit, Audit and Directors. Appropriate actions are also taken as per the
Inspection Unit) is performing the supervisory and decisions of the Audit Committee for protecting the
monitoring works to manage the risks. They are Bank’s interest.
performing their day to day activities with an intention
Report of the Risk

Management Committee
The Bank Company (Amendment) Act-2013, inter alia, provided for constitution of a Risk Management Committee of the
Board of Directors of every Bank. Bangladesh Bank issued BRPD Circular No.11 dated October 27, 2013 delineating, among
other things, the composition and functions of the Risk Management Committee especially in the areas of Bank’s core
risk-related issues.
Feature and Composition
The Board of Directors of the Bank in its 486th meeting held on April 11, 2016 re-constituted the Risk Management
Committee comprising the following Directors of the Bank. One Independent Director was included in the Committee.
The membership of the Risk Management Committee of the Board of Directors of the Bank and members’ attendance in
its meetings in 2016 are given below:
Sl. Meetings
No held
1. Alamgir Kabir, FCA Chairman 4 4
Ragib Ali
2. (Ceased to be Director on and Member 4 1 The Members who could not
from March 08, 2017) attend any meeting showing
3. M. A. Kashem Member 4 4 genuine ground were granted
4. Azim Uddin Ahmed Member 4 4 leave of absence
A. H. M. Moazzem Hossain
5. Member 4 4
Structure of the Risk Management Committee v. Reporting its decisions and recommendations to the
Board.
i. The Chairman of the Board of Directors of the Bank
shall be the Chairman of the Risk Management vi. Overseeing the implementation of related guidelines
Committee. issued by the regulatory bodies from time to time.
ii. Presence of 3 (three) members in a meeting of the
Reporting of the Risk Management Committee
Committee shall form quorum.
iii. The Company Secretary of the Bank shall act as the As required, the Risk Management Committee reported its
Secretary to the Risk Management Committee. decisions and recommendations to the Board of Directors
for review.
Functions of the Risk Management Committee
Deliberation of the Risk Management Committee in
The broad functional areas of the Risk Management 2016
Committee are the following:
During the year 2016, the Risk Management Committee
i. Risk assessment and risk control strategy. discharged its functions in areas relating to its
responsibilities. The issues it discussed and the decisions it
ii. Review of Risk Policy and its approval. took for improvement of risk management scenario in the
Bank are enumerated below:
iii. Review of the Information Management and
reporting system of the Bank. 1. Advised the management to regularly monitor the
large loans to protect Bank’s exposure and obtain
iv. Overseeing the overall implementation of Risk additional securities from such borrowers on best
Management Policy of the Bank. effort basis to reduce charge on Bank’s capital.
2. Advised the management to persuade the existing 17. The advice and guidelines of Bangladesh Bank as
good corporate and SME borrowers for their credit given in the comprehensive risk rating letter be
rating to reduce charge on Bank’s capital. complied with for qualitative improvement of the
Bank.
3. Periodically reviewed the maturity and duration
gaps of Bank’s assets and liabilities and advised the 18. Reviewed the Liquidity Coverage Ratio (LCR) and Net
management for their prudent management. Stable Funding Ratio (NSFR) of the Bank from time
to time against minimum requirement set by the
4. Advised the management to monitor the Non
regulator.
Performing Loans of the bank constantly to bring
those back to performing status. 19. Advised the management to strictly follow the single
borrower exposure limit as per the guidelines of
5. Early Warning System be strengthened and post-loan
Bangladesh Bank.
monitoring process be intensified for effective credit
risk management. 20. Loans to large borrowers not be increased unless
sufficiently covered by additional collaterals.
6. Advised the management to get Credit Rating of the
large borrowers to reduce charge on Bank’s capital. 21. Reviewed Bangladesh Bank’s report on SEBL’s Risk
Rating and Stress Testing.
7. The Heads of Branches be asked to exercise added
due diligence in assessing credit proposals. 22. Loans to RMG and Textile sectors be regularly
monitored to keep them within the sectorial
8. Loan to a customer shall be disbursed only after
allocation.
completion of documentation formalities.
23. The Heads of Branches be asked to diversify their
9. Off-Balance Sheet items of the Bank be handled with
loans and manage related risks efficiently.
more care and caution so that these don’t turn into
funded exposure.
Reporting to the Board
10. Advised for diversification of Bank’s loan portfolio as
far as possible and practicable. The decisions and recommendations of the Risk
Management Committee were submitted before the
11. Reviewed the Capital to Risk-weighted Assets Board of Directors for review and the Board closely
Ratio (CRAR) of the Bank from time to time against reviewed them.
minimum requirement.
12. Advised the management to improve asset quality Minutes of the Risk Management Committee to
by taking pragmatic steps. A balance between the Bangladesh Bank
growth of asset and capital be maintained to improve
the Bank’s Capital to Risk-weighted Assets Ratio The minutes of meetings of the Risk Management
(CRAR). Committee were submitted to Bangladesh Bank for their
information.
13. Large loans shall be reduced gradually within a
reasonable level.
14. Rules for single borrower exposure limit shall

be strictly followed and performance of the top
Alamgir Kabir, FCA
borrowers shall be regularly monitored.
Chairman
15. All out efforts shall be given for recovery of non- Risk Management Committee
performing loans as well as for creation of new quality
assets to increase Bank’s profitability.
16. Effective measures be geared up for recovery of

Bank’s dues from the top defaulters.
Evaluation of the Quarterly

Financials by the Audit Committee
and by the Board
BDT in million
2016 2015 2016 2015 2016 2015 2016 2015
1 Jan16 1 Jan 1 Jan 1 Jan 1 Jan 1 Jan 1st Jan 1st Jan
Particulars to 31 15 to 31 16 to 30 15 to 30 16 to 30 15 to 30 16 to 31 15 to 31
Dec 16 Dec 15 Sep 16 Sep 15 June 16 June 15 Mar 16 Mar 15
4th Qtr. 4th Qtr. 3rd Qtr. 3rd Qtr. 2nd Qtr. 2nd Qtr. 1st Qtr. 1st Qtr.
Balance Sheet - - - - - - - -
Cash 17,835 15,997 17,541 13,812 16,487 14,593 14,306 14,446
Money at call and on short notice 4,271 923 3,822 2,134 3,325 627 1,113 648
Loans and advances/investments 191,866 168,878 187,505 166,204 181,450 160,177 174,428 151,106
Fixed assets including premises,
8,947 7,885 8,718 7,876 8,638 7,882 8,331 7,907
furniture and fixtures
Other assets 3,102 4,813 3,118 5,558 4,526 3,554 4,829 4,118
Total assets 291,798 260,718 289,004 257,937 276,404 245,430 265,479 242,823
Borrowings from other banks, financial
7,372 4,557 5,249 7,590 7,018 7,816 7,034 8,340
institutions and agents
Subordinated bond 8,000 3,000 3,000 - 3,000 - 3,000 -
Deposits and other accounts 229,973 210,431 234,293 206,958 220,406 197,059 211,081 193,743
Other liabilities 19,919 15,514 19,428 17,053 19,631 15,983 16,562 16,827
Total liabilities 265,264 233,502 261,970 231,602 250,055 220,858 237,677 218,910
Paid up capital 9,170 9,170 9,170 9,170 9,170 9,170 9,170 9,170
Total shareholders' equity 26,524 27,207 27,025 26,327 26,341 24,562 27,793 23,903
Total liabilities and shareholders' equity 291,798 260,718 289,004 257,937 276,404 245,430 265,479 242,823
Off- Balance Sheet Items 113,911 88,522 103,350 93,867 101,312 96,729 93,116 99,160
Profit And Loss Account - - - - - - - -
Net interest income/net profit on
4,207 3,138 3,357 2,279 2,270 1,509 1,095 774
investments
Total operating income (A) 12,852 11,604 9,363 8,617 6,098 5,717 2,871 2,779
Total operating expenses (B) 4,349 3,570 3,005 2,537 1,888 1,592 906 766
Profit before provision (C=A-B) 8,503 8,034 6,358 6,080 4,210 4,125 1,965 2,012
Net profit after taxation 2,435 3,069 2,280 2,348 1,307 1,672 542 770
Earnings Per Share (EPS) 2.66 3.35 2.49 2.56 1.42 1.82 0.59 0.84
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 review 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.
Report of the Bank’s

Shariah Supervisory Committee
We solemnly pray to Allah, Subhanhu Wa Ta’ala for bestowal of His unbound blessing upon us and granting us tawfique
to fulfill Shariah requirements in our Islamic Banking Operations. May Allah also grant us ability to reap the full benefits of
Shariah-based banking in our Bank.
In the year 2016, Southeast Bank Limited catered Islamic Banking services through the following 05 (five) designated
Islamic banking branches:
Branch Name Address

01 Chhagalnaiya Branch, Feni Mir Shopping Complex, Chhagalnaiya, Feni
02 Cox’s Bazar Branch, Cox’s Bazar Asha Shopping Complex, 430-431 Bazar Ghata, Cox’s Bazar
03 Bandar Bazar Branch, Sylhet Karimullah Market, Bandar Bazar, Sylhet.
04 Motijheel Branch, Dhaka 125, Motijheel C/A, Motijheel, Dhaka.
Ali Villa, 1640/1861 (new), CDA avenue, Asian Highway, East
05 CDA Avenue Branch, Chittagong
Nasirabad, Chittagong
The Bank constituted a Shariah Supervisory Committee to During the Year 2016, Shariah Supervisory Committee
oversee the Shariah compliance in Bank’s Islamic Banking. of Southeast Bank Limited held 04(four) formal
The following veterans versed in Islamic jurisprudence meetings.
are the Faquih Members on the Shariah Supervisory
Committee: The Shariah Supervisory Committee advised to
extend the Islamic Banking Services Desks to all the
1. Professor Moulana Mohammad Salah-Uddin newly opened Branches of the Bank.

Chairman
The Shariah Supervisory Committee advised to
Khateeb, Baitul Mukaram National Mosque, Dhaka,
arrange Shariah Inspection of every Branch twice in a
and former Principal, Madrasha-e-Alia, Dhaka
year and ensure compliance of shariah requirements
2. Mr. M. Kamaluddin Chowdhury in Bank’s Islamic Banking operations.
Member
Former Managing Director of Islami Bank Bangladesh Training Program on Islamic Banking were arranged.
Ltd. and Shahjalal Islami Bank Ltd. Members of Shariah Supervisory Committee and
3. Moulana Mohammad Kafiluddin Sarker experts in Islamic Banking were invited to speak to
Member the participants in such training programs.
Principal, Dhaka Nesaria Kamil Madrasa and Katib,
Aminbagh Jame Mosque The people that work in Bank’s Islamic Banking
Branches as well as Islamic Banking Division at Head
The Shariah Supervisory Committee also reviewed
Office are sufficiently trained to offer best Islamic
different operational issues including those referred by
banking services complying Shariah principles.
the Management of the Bank. It gave necessary guidelines
and counseling.
The Islamic Banking Branches were advised to move
aggressively to procure more low-cost and no-cost
We report the following to the Shareholders in respect of deposit by increasing the number of Accounts and
Islamic Banking operation of the Bank. number of deposit customers of the Islamic Banking
Branches to improve deposit-mix.
The Shariah Supervisory Committee advised to park The Management of the Bank confirmed that all
more fresh investment clients in the Islamic Banking the Islamic Banking Branches were inspected by
Branches. the Muraquib in 2016. It was observed from the
inspection reports that compliance of Shariah has
The Shariah Supervisory Committee approved the significantly improved during the year.
Branding of Islamic Banking products within one
folder named “Tijarah”. The Committee also advised ii) No deviation of any Shariah requirement was
that the folder containing the salient features of reported to the Shariah Supervisory Committee by
Bank’s Islamic Banking Products be supplied to the Management.
the Islamic Banking Branches. The instruction was
complied. iii) The accounts of Islamic Banking Operations of
Southeast Bank Limited were kept separate from
The Shariah Supervisory Committee advised to conventional banking ones.
continue frequent training programs on Islamic
Banking to develop quality human resources for
Islamic Banking Service Desks. The advice has been iv) Efforts regarding engagement of buying agents
taken in right earnest by the Bank’s Management at branch level and their eagerness to attain
the expected level in shariah compliance while
discharging their duties and responsibilities have
The Shariah Supervisory Committee approved the been strengthened.
documentation checklist for Shariah compliance.
Shariah Inspection reports of Islamic Banking May Allah give us tawfique to achieve His satisfaction
through implementation of Shariah in every sphere of our
Operation of the Bank for the year 2016
life including those applicable to banking transactions.
Ameen.
The Bank engaged one Muraquib for Shariah inspection
of Bank’s five Islamic Banking Branches. The Muraquib has
been performing his duties satisfactorily.
i) The Shariah Supervisory Committee stressed upon Prof. Moulana Mohammad Salah-Uddin
frequent inspection of the Islamic Banking Branches. Chairman
Capital Plan
Capital is one of several ways for the Bank to fund itself, undertaken along with submissions to the Management
alongside deposits and other sources of funding. It Level Risk Committee, SRP (Supervisory Review Process)
absorbs losses, promotes public confidence, helps team, ALCO, MANCOM, Board Risk Committee and the
restrict excessive asset growth, and provides protection Board.
to depositors. It provides a measure of assurance to the
public that the Bank will continue to provide financial The Bank continues to monitor regulatory developments
services even when losses have been incurred, thereby very closely and analyze the potential capital impacts
helping to maintain confidence in the banking system to ensure maintenance of a strong capital position that
and minimize liquidity concerns. A bank with insufficient exceeds the minimum regulatory requirements and risk
capital can easily go bust if it suffers large losses. Therefore, appetite and is consistent with market expectations.
SEBL performs proactive capital planning that incorporates Considerations include:
more robust financial and operational risk assessments
which will have the following benefits for the Bank: Internal risk appetite (including stress testing).
Assisting in the identification, assessment, monitoring Regulatory policies and guidance.

and mitigation of the Bank’s risks.
Market conditions and expectations.
Increasing the Management and the Board’s
understanding of the Bank’s current risk profile.
Capital Management in SEBL
Helping the Management and the Board to define its

Capital Management lies at the core of SEBL’s strength
risk tolerance.
and sustainability goals. The construction of capital starts
with Common Equity Tier 1 (CET1) and other classes of
Facilitating the quantification of risk thresholds.
capital such as Additional Tier 1 (AT1) and Tier 2. Capital
Management involves the optimization and efficient use
Assisting in the development of action plans to
of capital required by the Bank’s businesses, the outcomes
manage key risks.
of stress testing, the requirements of the market and the
regulators and the supply of adequate forms of capital at
Aiding in contingency planning.
acceptable prices.
The starting point for a capital plan is the annual budget
cycle which forecasts the Bank’s Balance Sheet trajectory The Bank has capital management framework including
over a five year forward looking horizon. The budget cycle policies and procedures that are designed to measure
incorporates assumptions about the future shape and actual and projected capital performance against risk
direction of the Balance Sheet of the Bank. It includes appetite, ensures that it continues to comply with
assumptions around the future path of Risk Weighted regulatory requirements and is positioned to meet
Assets, profitability and tax. The future direction of projected future changes to its capital requirements.
regulation which are known (for example phasing in
of BAESL III requirements) or expected is also taken into Southeast Bank maintains a sufficient level of capital
account. The capital plans are then tested for capital that allows it to operate over its strategic horizon with
adequacy and measured against the Bank’s risk appetite an agreed risk appetite in pursuit of its business strategy,
framework using a range of stress scenarios covering taking into account regulatory requirements, support for
adverse economic conditions as well as other adverse customers and to provide confidence to stakeholders.
factors that could impact the Bank. In addition, the The Bank issued a Basel III compliant Tier 2 Subordinated
Bank maintains a recovery plan which sets out a range bond for BDT 5,000 million in 2016. It has also improved
of potential mitigating actions that could be taken in its capital mix with a Basel III compliant subordinated
response to an extreme stress. capital instrument. Besides, the Bank is able to accumulate
additional capital through the reduction in Risk Weighted
Regular reporting of actual and projected capital and Assets, accumulation of profits over time, by raising new
leverage ratios including those in stressed scenarios, is equity via, for example, a rights issue or Tier 2 capital
by issuing subordinated debt. The Bank is also able to Capital Requirement under Basel III
manage the demand for capital through management
actions including adjusting its lending strategy through Basel III aims to improve the quality of capital, increase
business disposals. capital levels and remove inconsistencies in the definition
of capital as explained in the table below-
Increased quality, quantity and

consistency of capital
> Increased focus on common equity tier (CET I)
> Increased capital levels
Capital conservation buffer

> 2.5% CET I capital buffer by 2019 to decrease pro-cyclicality
> Build up capital during favourable economic conditions
that can be drawn on during times of stress.
SEBL adopted the Basel III framework introduced by the Central bank. It came into effect on January 2015 and the Bank
has been compliant with the minimum requirements from that date. The Bank is well positioned to comply with the
requirements that are subject to phase-in rules within 2019 as per the following table-
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%
Statement of
Non-Performing Loan (NPL)
Loan classifications are expression of different degrees of of unclassified and classified loans of the bank as on
risk against non-repayment of any loan by the borrower 31.12.2016 was as follows:
based on past due days. In general, the asset quality of
the banking industry came under severe pressure during Amount
the year due to broader macroeconomic factors as well Status BDT in Percentage
as issues specific to certain sectors in the economy. The Million
banking industry on a collective basis saw a sharp spike in
non-performing assets. Maintenance of quality of asset in Unclassified Loans
such an economic condition has been a great challenge. Standard 171,314.82 90.47
By the grace of the Almighty Allah and as an evidence Special Mention Account 8,792.35 4.64
of collective effort of both Head Office management
Sub-Total 180,107.17 95.11
and Branch officials, Southeast Bank could arrest the
deterioration of loan portfolio and maintain the highest Classified Loans
standards of governance in respect of recognition and Sub-Standard 1,567.13 0.83
provisioning of non-performing loans. Maintenance of Doubtful 587.80 0.31
asset Quality has been given top priority by restricting
non-performing assets through early detection, Bad/Loss 7,102.86 3.75
monitoring, corrective action plans, shared information Sub Total 9,257.79 4.89
and disclosures to keep future recurrence in check. Grand Total 189,364.96 100
Industry Scenario of Non-Performing Loans Impact of Non-performing Loans
The Banking sector of Bangladesh is trapped in a gridlock Non-performing assets have multidimensional impact
of non-performing loans (NPL). The overall banking sector on the Bank and its profitability. The higher NPL indicates
has passed through an adverse business environment incremental non-income generating assets. NPL affects
during 2016. A number of factors like slow growth of banks’ profitability adversely and reduces return on
investment, uncertainty among the investors, financial investment (ROI) and hampers the capital adequacy ratio
scams especially in state owned Banks, fund diversion, (CAR). At the same time, it has a great impact on reputation
sluggishness in real estate sector, excess liquidity, of the Bank.
etc impacted the performances of banking industry.
Establishing or maintaining good governance, managing Provisioning
NPL including collecting bad loans and increasing
profitability were major challenges for 2016 since Provisioning is the computation and maintenance of
recovery from rescheduled/restructured loans were not required provisions against the impaired as well as regular
encouraging. Major industrial sectors did not perform in portfolio including off-balance sheet items. Specific loan
line with expectations mainly due to procedural delays loss provisions in respect of non-performing advances
and infrastructural bottlenecks. Therefore, many of are made based on the degree of impairment of loans
rescheduled/restructured loans have become classified and advances as per guidelines of Bangladesh Bank. The
again due to failure of repayment of instalments. Bank also maintains general provisions for its standard
loans and off-balance sheet items as per the regulatory
Classification Status of Credit Portfolio requirement. In addition, the Bank keeps some additional
provision as per the advice of Bangladesh Bank.
The Bank classifies its loan portfolio in accordance with the
rules and regulations set by Bangladesh Bank from time to The Bank exerts its best endeavor to reduce the existing
time. In case of need, the Bank classifies some loans on classified loans by way of cash recovery and rescheduling
qualitative judgment too. Our Bank Management always in some deserving cases and writing-off the loans
remains vigilant to arrest new loans from being classified, complying the rules and regulation of Bangladesh Bank.
minimize the existing non-performing loans by way of As a result of concerted effort, the Bank could restrict the
cash recovery and regularize through rescheduling to the amount of non-performing loans to BDT 9,257.79 million
deserving cases under the purview of Bangladesh Bank’s which was 4.89% of total loans as on December 31, 2016.
guidelines. Amidst adverse trend of loan classification, At the same time, the Bank kept provisions of BDT 7,297.78
Southeast Bank could restrict its classified loan position million for classified/unclassified loans and off balance
to BDT 9,257.79 million which was 4.89% of total loans sheet items against required provisions of BDT 5,984.91
and advances as on December 31, 2016. The status million.
Loan Write-offs Officials of Legal Affairs & Recovery Division of

Head Office are regularly visiting the branches with
Minimizing the amount of non-performing loans through defaulted loans and meeting the defaulted clients to
writing-off of bad loans is an internationally accepted find out ways for settlement/adjustment of bad loans
practice to keep the balance sheet sound. Southeast of the bank outside the court.
Bank has started writing-off of loans since 2004. Impaired
loans are written-off when there is no longer any realistic Considering the client’s business/financial condition,
prospect of recovery of part, or the entire loan in a shorter long-drawn legal procedures, time value of money
span of time. concept several measures like rescheduling with
longer repayment period, concessional interest rate
Initiatives taken for recovery of Non-Performing and in few cases settlement arrangement with waiver
Loans (NPL) of a portion of interest are allowed to recover the
loans.
In order to arrest NPL, our focus was not only on reducing
NPL portfolio, but also avoiding further NPL. In line with After exhausting all recovery efforts suits are filed
that, we have strengthened our recovery and monitoring with Artha Rin Adalat as well as CMM court to recover
drives, utilized external sources where found suitable, non-performing loans. All cases are properly followed
strengthened our legal team, intensified recovery up jointly by the Branch and Head Office. In case of
initiatives by establishing a task force for sizeable recovery. inadequate collateral security initiatives are taken
Southeast Bank has taken the following initiatives to to attach other properties of the client/guarantor/
recover the non-performing loans: mortgagor through the court.
Defaulted clients are being continuously pursued In respect of certificate owned properties all possible
jointly by the Branch and the Head Office officials steps are taken to obtain the possession of the
through letters, phone calls, visits to their business properties from the court as well as to sell out those
places and residences and holding meetings at Head through auction at a competitive price.
Office and branches.
Court cases are constantly monitored through the
A strong ‘Taskforce’ comprising senior level executives panel lawyers of the bank. In case of need senior
of Head office and Heads of Respective Branches has lawyers are appointed to conduct the court cases
been formed for recovery of classified loans of the of the Bank. Efforts are taken to recover bad loans
Bank. Taskforce is actively reviewing the recovery through early disposal of court cases.
position of those loans in their monthly meeting and
giving necessary directions/guidelines to gear up the A 06-member special committee has been
recovery process. constituted comprising 03-officials of Legal Affairs &
Recovery Division of Head Office and 03-officials of
Respective Branches have been given targets for the concerned branch to follow up the big cases of
recovery of classified loans at the beginning of the the branch for early disposal.
year and achievement of target by the branches
is reviewed by Head Office continuously. In case Top Management of the Bank always remain vigilant
of need, branches are given necessary guidelines/ to monitor and review all the relevant aspects; provides
assistance to achieve the recovery target of the necessary directions and guidance time to time; to ensure
branches. asset quality through reducing NPL ratio of the Bank.
Risk Management
and Control
Framework
Our risk Management and
Control Measures are aimed
at remaining disciplined,
reducing risks and
augmenting success.
Report on Risk Management

Framework, Mitigation Methodology &
Risk Reporting by Chief Risk Officer
The world is passing through a very uncertain time both
economically and politically. Although global growth is
estimated to be 2.70 percent in 2017 according to World
Bank’s latest projections; the stagnant global trade, subdued
investment and above all heightened policy uncertainty are
the downside risks for global growth. Protectionist policies
announced by the new US administration, likely fallout
from Brexit and growing popularity of populism and anti-
globalization rhetorics in the US and Europe pose serious
threats to global trade, multilateralism and geopolitical
environment. While the withdrawal of US from Trans Pacific
Partnership (TPP) may have some positive inpact on our trade
with the US no one knows to what extent abandonment
Risk management
of multilateralism would be replaced by bilateralism.
Thus, Bangladesh will have to watch carefully the likely
developments in policy directions outside its boderes and
take advantage of the situation as they come by in days to
come.
The Bangladesh economy has demonstrated resilience and

is on a consistent upward growth trajectory as reflected in a
number of indicators such as GDP growth of 7.11 percent, a
five-year low average CPI inflation of 5.50 per cent, moderate
private sector credit growth of 15.55 per cent, foreign
currency reserve of over 32 billion and current account
balance of 3.70 billion in FY 2015-16. All the macroeconomic
indicators are expected to remain stable and favorable in
2017 for attaining GDP growth target of 7.20 per cent. The
banking sector is however presently burdened with excess
risks in an integrated approach to generate consistent and
liquidity, swelling Non Performing Loan (NPL), decreasing
steady income keeping the risk of doing business within limit.
interest rate spread, falling remittance, and the threat of
We have risk management framework in place to identify,
cyber attacks. Promising macroeconomic environment,
prioritize, manage and mitigate the risks we face. The process
growth oriented and pragmatic monetary policy, increasing
is forward looking which keeps us aware of future risks. It
public and private sector investment and stronger regulatory
ensures addressing the risks in a consistent and systematic
supervision are expected to invigorate the banking sector
way through robust internal control. We set the overall level
in 2017. In the midst of all these uncertainties the financial
of risk that can be absorbed and accommodated. We accept
sector will not be immune from risks.
risk taking as part of our strategy to get financial and non-
financial returns commensurate with the risk. Southeast Bank
In the era of financial liberalization, risk management has
tries to ensure that risk taking is prudent, within limit and
been a much talked about issue in the financial industry
informed.
around the globe. The increased deregulation in the financial
sector and its global consequences in the form of financial
Southeast Bank always strives for excellence in all its endeavors
turmoil have stirred the regulators to rein in the defiant
to effectively manage risks. Identifying and addressing
market for financial discipline. In Bangladesh we have also felt
various kinds of risks is a continuous process and the Bank has
the heat; and the central bank focused more on regulations,
established an effective framework to revise and update the
control mechanisms and limits so that financial soundness of
framework as and when needed. Our commitment is to be
the financial institutions is ensured.
a fully compliant, transparent, resilient and sustainable bank.
Risk is directly proportionate to return. The more risk a
bank takes, the more profit it can expect. But exposure to
excessive risk may lead to vulnerabilities and force it out
of the business. Thus maintaining a trade-off between risk S. M. Mainuddin Chowdhury
and return is the prime objective of the risk management Additional Managing Director
activities of our bank. Southeast Bank aims to administer & Chief Risk Officer (CRO)
Risk Management in SEBL

Overview Maintaining stakeholder confidence: To ensure that
SEBL is valued and trusted by stakeholders to attain
SEBL has a robust and integrated risk management its strategic objectives.
framework which sets out elaborately the responsibilities
and the accountabilities for risk management of the Bank. 2. Policies: Policies have been established for the
The framework consists of two key components- management of each risk type which are subject
to annual Board review and approval. They
1. Strategy and Risk Appetite: The Bank has established specify responsibility for managing each risk and
a strategy as well as articulated a statement of risk requirements for measurement and reporting. The
appetite that is consistent with that strategy. The Risk Management Framework outlines the formal
risk appetite statement describes and measures the structure for the flow of risk information and reporting
amount and types of risk that the Bank is prepared to from business areas to the risk management
take in executing its strategy. committees and the Board. It also defines how
The strategic risk appetite objectives are: strategic direction and guidance is cascaded down
from the Board and risk management committees.
Maintaining capital adequacy: To ensure that there
is sufficient capital resources to meet regulatory Risk Management at Management level of the Bank
requirements and to cover the potential unexpected
losses. The three lines of defense model is used for the
management of risk. It provides a clear set of principles
Delivering stable earnings growth: To ensure by which a cohesive operating model is implemented
sustainable growth based on a longer-term risk- that provides a framework for the articulation of
versus reward consideration. accountabilities and responsibilities for managing risk
across the Bank. SEBL’s risk management approach is
Ensuring stable and efficient access to funding and premised on the following three lines of defense:
liquidity: To ensure optimum liquidity to meet its all
financial obligations.
Primarily responsible for risk management. The process of assessing,

evaluating and measuring risk is integrated into the day-to-day activities
1st Line of Business Unit of the business. This process includes implementing the Bank’s risk
Defense Management/Branches management framework, identifying issues and taking remedial action
where required. Business unit management is also accountable for
reporting to the Head Office management and regulatory bodies.
Head Office management Prepare policies in line with the regulatory and economic changes.
by different specialized
divisions and committees The business unit risk management functions implement the Bank’s
2nd Line of
like: MANCOM; ALCO, risks management framework and policy in the business units and Head
Defense
Strategic Committee, Office Management approves risk within specific mandates and provide
Product Committee are an independent overview of the effectiveness of risk management by the
other major committees. first line of defense.
a) Ensure that the Bank will comply with laws and regulations as well as
a)Internal Control and
policies, plans, internal rules and procedures, and decrease the risk of
Compliance
unexpected losses or damage to the Bank’s reputation.
3rd Line of
Defense
b) Provides an independent assessment of the adequacy and effectiveness
b) Risk Management
of the overall risk management framework and risk governance structures,
Division
and reports to risk management committee of the Board.
Risk Management at Board level
Three separate committees of Board named: 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.
Risk Management Committee of the Board:

Board Risk Management Committee is responsible for mitigating risks arising from strategies
and policies formulated by the Board.
Risk Management Committees and Reporting Line
Risk management
Board of
Directors
Audit Committee Managing Risk Management

of the Board Director Committee of the Board
Internal Control and Management Level

Compliance Division Risk Committee
MANCOM ALCO Risk Management

Division
Risk management of the Bank has risk oversight for core risks along with Environmental risk are described
the following core risk areas: below:
01. Credit Risk Management

1. Credit Risk Management
2. Asset-Liability Risk Management Credit risk entails the risk of loss that may occur from any
3. Foreign Exchange Risk Management borrower’s failure to abide by the terms and conditions
of any financial contract, principally the failure to make
4. Internal Control and Compliance Risk Management
required payments to the Bank against a loan received by
5. Money Laundering Risk Management the Borrower. Southeast Bank has a comprehensive credit
6. Information and Communication Technology Risk risk management policy, which deals with identification,
Management assessment, measurement and mitigation of credit risk.
Credit Risk Management process of the bank is articulated
Apart from the core risks mentioned above, the through various Board approved policies viz. Credit Risk
Environmental risk is one of the major risks that has been Management Policy, Delegation of Business Powers to
considered as an integral part of credit risk. The Bank’s risk Individual Executives/Officers for loans and advances,
management processes, policies and mitigations of the Valuation Methodology, Standardized Recovery/
Collection Procedure etc. The Bank measures, monitors Upon approval a letter, conveying the sanction of loans,
and manages credit risk at an individual borrower level is issued in four copies (for the Branch, CAD, ICCD and
and at the portfolio level as well. The Bank’s structured Corporate Banking) by the credit approval Department of
and standardized credit approval process includes a well- CRM. (if declined, the same is communicated accordingly.)
established procedure of comprehensive appraisal based
on the guidelines- Credit Risk Management Policy of the iii. Credit Risk Monitoring Process
Bank and rules and regulations of Bangladesh Bank and
other regulatory authorities. This policy is being reviewed The Credit Risk Management activities of the Bank aim at
and updated annually incorporating the new instructions ensuring that there is no undue deterioration in quality
of regulators, considering the global and local economic of individual assets within the portfolio. It also aims
trend and based on appetite of the Bank. Bank’s Credit Risk at continuing improvement of the overall quality of
Management practices are based on policy directives duly assets at the portfolio level, by deploying appraisal skills,
approved by the Board which, inter-alia, encompasses the ensuring adherence to credit basics/lending guidelines,
followings: maintaining documentation standards and complying
with the rules and regulations of regulatory authorities
i. Credit marketing. while leaving enough room for flexibility and innovation.
ii. Credit approval processes/risk assessment and ways The primary monitoring is done by branches’ relationship
officers/managers as well as Head of Branch regarding
and means of mitigation.
their performances, business, transaction and turnover,
iii. Credit Risk monitoring processes. repayment behavior etc.
iv. Credit Risk mitigation processes.
Simultaneously, the Credit Administration Department
i. Credit Marketing under CRM Division is assigned to look after post approval
process such as to establish better control over loan
All the branches are the ambassadors of the Bank located portfolio by helping completion of documentation,
at the door step of the customers and they are the primary scrutinizing the checklist of documents, setting limits and
contact point with the clients. Branch officials and Direct tenor and pricing of loans etc. in a systematic manner
Sales Executives promote the business of the Bank and sell and allow subsequent disbursement, ensuring utilization
the products and services to the prospective customers. of fund, monitoring and compliance of all covenants
They establish contact with the potential clients and park and conditions precedent. This Department keeps
them to the Bank as per the directives of Head Office in constant follow-up of the credits right from its sanction
line with the Credit Risk Management Guidelines, annual and continues its efforts to keep the credits performing
sectoral allocation, strategies and policies to achieve the and unclassified. Besides, overall portfolio of the bank is
targets. reviewed at regular intervals and brought to the notice of
senior level management regarding concentration risks,
ii. Credit Approval Process geographical distribution, downgradation along with
early alert list (if any) for information & their guidance.
The Credit Officer at Branch level acts as relationship officer These coherent activities altogether help the bank to
and is held responsible to ensure the accuracy of the maintain sound health of the credit portfolio and to attain
entire credit application/ proposal submitted for approval. a sustainable growth.
A thorough credit and risk assessment is conducted prior
to granting any loan. The Corporate Banking Division, iv. Credit Risk Mitigation Process
SME & Agri Credit Division, Islamic Banking Division, Retail
Banking Division of Head Office are actively involved The bank makes all possible efforts to mitigate risks
in scrutinizing, analyzing, assessing and processing the associated with credit accounts through suitable
credit proposal and in some cases marketing (syndication collaterals, guarantors, insurance coverage etc. wherever
finance). The Credit Risk Management Division is involved it is considered feasible and desirable. In addition to that,
in evaluation and in-depth analysis of risks associated terms and conditions under which credit is sanctioned
with the individual borrower and in finding out the also go a long way to mitigate risks associated with credit.
mitigating factors to minimize those risks. Then the Regular monitoring and control of accounts also add to
respective credit officers of Head Office further process the risk mitigation. In order to mitigate risks, the Bank takes
the proposal embodying and complying the observations necessary guarantees and documents including charge
of CRM and place the proposal to Head Office Credit documents.
Review Committee (HOCRC) for consideration/decision.
2. Asset-Liability Risk Management
Upon recommendation of Head Office Credit Review
Committee, the competent authority (as per delegated Asset Liability Risk Management (ALM) can be defined as
business power) may approve or decline the proposal. a mechanism to address the risk faced by a bank due to a
Managing Director may recommend the proposals which mismatch between assets and liabilities either as a result
are beyond the Managing Director’s delegated authority of liquidity or changes in interest rates. Liquidity is an
to the EC / BoD as per delegation for approval/ decision. institution’s ability to meet its liabilities either by borrowing
or converting assets. Apart from liquidity, a bank may also Measurement and Mitigation of Interest Rate Risk:
have a mismatch due to changes in interest rates as banks
typically tend to borrow short term and lend long term. Effective Interest Rate Risk management is a key
component of earnings, capital preservation, and growth.
Liquidity Risk We measure Interest Rate Risk (IRR) through Gap Analysis
of Rate Sensitive Assets and Liabilities to estimate the
Liquidity risk refers to the risk of a bank’s inability to meet
probable impact on Net Interest Income of the bank.
its financial obligations as they fall due without incurring
Where rate sensitive assets are more than rate sensitive
unacceptable costs or losses through fund raising and
liabilities (i.e. positive gap) an increase in interest rate will
assets liquidation. Liquidity risk can also arise due to bank’s
impact the Net Interest Income positively and vice versa.
incapability to manage unexpected decrease or change
in funding sources. It can negatively affect the earnings
Another gauge to measure IRR is Duration Gap Analysis
and growth potential if the liquidity position constrains
which is used to predict the likely impact of interest rate
a bank from undertaking a transaction at normal market
movements on the net worth of the bank. By changing
rates/prices.
the durations of investment assets, we try to obtain the
Measurement and Mitigation of Liquidity Risk desired impact of interest rate movements on the Balance
Sheet of the bank.
Southeast Bank has a well established liquidity strategy,
policy and procedure in line with the Bangladesh Bank 3. Foreign Exchange Risk Management
guidelines that establishes an appropriate and properly
controlled liquidity risk environment. The ALCO, which The uncertainty about fluctuations in exchange rates
oversees the liquidity and other risks of the bank, manages leads to Foreign Exchange Risk. Typically, a depreciating
Risk management
the liquidity by ensuring the followings: currency leads to gains from assets and losses from
liabilities whereas an appreciating currency results in the
Preparation of Structural Liquidity Profile (SLP) of opposite. In the foreign exchange business, banks also face
Assets and Liabilities in different time buckets as per the risk of default of the counter parties or settlement risk.
Bangladesh Bank Guideline. The foreign exchange positions arise from the following
activities:
Maintenance of a cushion of high quality,
unencumbered, liquid assets that can be used, Trading in foreign currencies through spot, forward
without impediment, to obtain funding in times of and option transactions as a market maker or position
stress; taker, including the unheeded positions arising from
customer-driven foreign exchange transactions;
Remaining present in the inter-bank market by regular
borrowing and lending side by side maintaining Holding foreign currency positions in the banking
credibility and good reputation with the depositors book (e.g. in the form of loans, bonds, deposits or
/ lenders to make sure that liabilities matured are cross-border investments); or
promptly renewed.
Engaging in derivative transactions that are
Diversification in the sources (including
denominated in foreign currency for trading or
counterparties, instruments, currencies and
hedging purposes.
markets) and tenor of funding, and regular review of
concentration limits;
Bank has formulated a Foreign Exchange Risk Management
The BASEL III guideline provided two effective Manual as per the guidelines given by Bangladesh Bank to
monitoring tools to measure the liquidity named measure, monitor and control different foreign exchange
Liquidity Coverage Ratio (LCR) and Net Stable risks. Apart from this manual, Bank also applies other
Funding Ratio (NSFR) which our bank is maintaining standard tools to minimize foreign exchange risks, some
from the beginning. of which are given below:
Interest Rate Risk Maintaining Net Open Position (NOP) within the limit
set by Bangladesh Bank.
Interest rate risk is the risk to income or capital arising from
fluctuation in the interest rates. Changes in interest rates Setting counterparty limit which includes forward,
also affect the underlying value of the assets and liabilities placement, SWAP limits for foreign exchange
of the bank because the present value of future cash flows transactions.
changes when interest rates change. Interest Rate Risk, if
assumed correctly, can be an important source of profit Setting limits for the foreign exchange dealers
and share value. However, excess Interest Rate Risk can (intraday open position limit, stop loss limit, per deal
significantly jeopardize the bank’s income and capital limit, trigger limit).
base.
Reconciling Nostro accounts periodically as per the by the inspection team as per direction of the competent
instruction of Bangladesh Bank. authority.
Calculating VaR (Value at Risk) to measure the highest All the irregularities/lapses identified by the inspection
possible loss of holding of foreign currency. team were aggregated in inspection report and those
reports were sent to the respective branch/division for
4. Internal Control and Compliance Risk compliance. All the branches/divisions sent compliance
Management report to the ICCD within the time frame. Major
observations and summary of the report were discussed
The risk of Internal Control and Compliance is one of the in the Audit Committee of the Board. Implementation of
Core Risks in Banking Industry. In today’s environment, decision of the Committee is being monitored by ICCD.
it is commonly agreed that a bank requires a strong and
effective system of internal controls, if the bank’s authority 5. Money Laundering Risk Management
desires to be operated safely and soundly. Failure of
understanding and managing the risks of Internal Control Southeast Bank is constantly vigilant to money laundering
and Compliance may greatly increase the possibility that prevention and combating the financing of terrorism to
some risks will go unrecognized and uncontrolled. mitigate reputational, legal and regulatory risks. In this
respect, it exercises zero tolerance.
The management of Southeast Bank has put in place an
effective system of internal control in line with standard The Bank has put the following tasks in place for mitigating
guidelines and Bangladesh Bank Guidance Notes on the risk of money laundering, terrorist financing and
Internal Control and Compliance in order to keep the Bank proliferation financing at home and abroad:
on course towards profitability goals, achievement of its
mission and improvement of the performance and to Maintaining an enterprise-wide Anti- Money-
minimize surprises along the way. The management has Laundering and Anti-Terrorist Financing Policy.
also established sophisticated organizational structure to
exercise strong culture within the Bank by implementing Compiling with applicable Anti-Money Laundering &
policy guidelines of internal controls appropriately and Terrorist Financing laws and regulations as made by
strengthening internal controls system. Bangladesh Financial Intelligence Unit.
Internal control and Compliance Division (ICCD) of Reporting all identified suspicious transactions/
Southeast Bank has 03 units named Audit and Inspection activities to the extent that it can do so under all
Unit, Monitoring Unit and Compliance Unit. applicable foreign and domestic laws.
a) Audit and Inspection Unit conducts internal Monitoring banking functions of the branches and
inspections (comprehensive/surprise) on all the concerned divisions in respect of compliance of
Branches and Divisions of our Bank to identify related laws and regulations of regulators.
lapses/ irregularities therein and to rectify those in an
effective way. Retaining all customer related documents for a
period specified by Bangladesh Bank.
b) Monitoring Unit ensures effective implementation
of control functions. Off-site monitoring under Training staffs on AML and CFT requirements and
Monitoring Unit is done on the operational activities maintaining the records.
of the Branches from Head Office. If any unusual
transaction or activity is identified/observed by Off- Doing Enhanced Due Diligence (EDD) for high risk
Site Supervision Team, respective branch is informed customers.
to take immediate corrective action.
Conducting awareness building program on AML
c) Compliance Unit is responsible for ensuring that the and CFT requirements round the year.
Bank remains fully compliant with the regulation
prescribed by the regulatory authority. 6. Information and Communication Technology
Risk Management
During the year 2016, inspection teams of ICCD conducted
comprehensive and surprise inspection of 103 branches The adoption of technology in the Banking industry
and 08 divisions. Besides, Foreign Exchange operations of is growing faster and a variety of delivery and payment
all the AD branches had been inspected by the inspection channels for electronic banking are being offered to the
team. ICT inspection team inspected 42 branches and 03 customers. However, information technology based
divisions of HO on ICT operation and policy compliance banking products and services invite more internal and
of SEBL to mitigate the ICT risk. A number of special external vulnerabilities and risks. Therefore, it is necessary
inspections for investigation and inquiry were carried out for the Bank to ensure that the risks are properly identified
and mitigated through a prudent ICT risk management environmental responsibility but also present business
strategy. opportunities such as innovative financial products
and investments in sustainable forestry and renewable
The Bank took a number of steps to protect its core energy. This will help us better manage our risks, develop
business operation and other delivery channels from ICT expertise, and provide clients with solutions to evolving
related risk. These are mainly: exposures.
Upgradation of Core Banking Software (CBS); To keep its commitment, Southeast Bank has adopted
a comprehensive environmental policy. The policy will
Deployment of new Debit Switch and Debit Card be implemented with an Environmental Management
Management System; System that includes planning, training, implementation,
measurement, reporting and review, and will apply to new
Introduction of chip based credit card (Visa and business and existing business that comes up for renewal
Master); or extension. Specifically, we will integrate environmental
and social awareness into the credit analysis and financing
Reviewing of ICT Security and Risk Management decision process and incorporate it, where appropriate,
Policy to cope with the evolving changes in the ICT as part of our due diligence review. We will train relevant
environment; employees to take responsibility for and implementation
of these policies.
Performance of the internal vulnerability assessment
(VA); and According to the policy
Risk management
Periodic ICT Audit and inspection (internal and SEBL defines the term “environment” to include both
external) in different Divisions and Branches. ecological (such as physical and biological) aspects
and related social aspects (such as worker protection
The Bank took considerable measures from time to time and community issues).
to mitigate identified vulnerabilities and risks. The Bank
is gradually implementing various ICT related security SEBL recognizes that taking ecological and social
solutions to ensure further security of the threat factors aspects into account is part of good business and
(like: Network, Mail, Web/Internet, ATM and SWIFT leads to sustainable development. The Bank believes
Operation etc.). As the ICT risk management is an ongoing that this approach enhances the client’s competitive
process, the Bank is constantly assessing risk by analyzing advantage and that economic growth and a healthy
threats and vulnerabilities within its risk management environment go hand in hand.
framework and taking appropriate actions to mitigate and
maintain an acceptable level of risk. SEBL prioritizes and actively seeks to finance projects
with direct or indirect environmental benefits.
7. Environmental Risk Management
SEBL assesses the environmental aspects of all loan
Southeast Bank recognizes that balancing non-financial applications.
factors such as environmental and social issues with
financial priorities is an essential part of good corporate SEBL commits itself to act as a good corporate citizen
citizenship, in addition to being fundamental to risk and will continually pursue improvements in its
management and the protection of investors. We have operations and apply best practices in environmental
a direct impact on the environment through our daily management in its internal operations.
consumption of energy and paper/ink resources. Our
actions have potential indirect effect on the environment SEBL seeks business partners who share our vision and
through the provision of financial services to projects commitment to sustainable development. We are
located at environmentally sensitive areas. We recognize committed to work together with them to promote
that the policies and practices we adopt today will shape sound, coordinated and effective approaches to
not only our lives but also those of future generations. environmental issues.
We therefore have an opportunity to make a positive
contribution to environmental and social concerns At the end of 2016, Bank formed a new Sustainable Finance
by enacting appropriate policies so that our business Unit as per Bangladesh Bank guideline. Terms of Reference
operations do not degrade the environment or cause of the Unit includes implementation of Environmental
social harm. Such policies not only indicate positive and social risk management policy.
Disclosure on Risk Based Capital

Adequacy (Basel III)
Bangladesh Bank vide its BRPD Circular No.18 dated reports the outcomes to Bangladesh Bank, as a part of
December 21, 2014 implemented revised regulatory Pillar-II of Basel-III.
capital framework for banks in line with Basel III
in Bangladesh with effect from January 01, 2015. In a nutshell the purpose of this Disclosure Report is to
Implementation process of this framework has started set out how Southeast Bank Ltd. complies with the Pillar-
in January 2015 and will continue till December 2019. III requirements under Basel-III. The following detailed
The new Basel III has incorporated strengthening capital qualitative and quantitative disclosures are prepared
framework, enhancing risk coverage, risk based capital in accordance with guidelines on Risk Based Capital
requirement with leverage ratio, reducing procyclicality Adequacy (Basel-III) framework by Bangladesh Bank on
and promoting countercyclical buffers, addressing December 2014. These disclosures are purported to
systemic risk and introducing global liquidity standard. affirm the information on Minimum Capital Requirement
(MCR) under Pillar-I and Supervisory Review Process (SRP)
Under this framework, Bank has to maintain 2.5 percent under Pillar-II and ensure transparency about the capital
additional capital buffer with the minimum capital adequacy framework, risk assessment and mitigation
requirement 10%. Besides, in order to avoid building-up methodologies, risk exposure in various spectrum so that
excessive on-and off-balance sheet leverage, the Bank is the stakeholders of the industry can examine the risk
required to maintain minimum 3 percent leverage ratio. related compliance of the Bank.
Here, Leverage Ratio expresses total tier-I capital (after
A) SCOPE OF APPLICATION
related deduction specified by BB) to total exposure
i.e. on balance sheet and off- balance sheet exposure Qualitative Disclosures
(after related deduction specified by BB) which is to be
submitted to Bangladesh Bank on quarterly basis. a) The name of the top corporate entity to which this
framework applies: Southeast Bank Limited.
To ensure strong liquidity base, the Bank is also required to
b) The quantitative disclosures are made on the basis
maintain two other liquidity ratios i.e. Liquidity Coverage
Ratio (LCR) and Net Stable Funding Ratio (NFSR). The of consolidated audited financial statements of
standard maintenance limit of these ratios is set as ≥100% the Bank and its Subsidiaries as at and for the year
and >100% respectively. LCR was introduced to ensure ended December 31, 2016 prepared under relevant
short-term resilience of Bank’s liquidity risk profile by International Accounting and Financial Reporting
ensuring that it has sufficient high quality liquid assets Standards as adopted by the Institute of Chartered
(HQLA) to survive an acute stress scenario lasting for Accountants of Bangladesh (ICAB) and related
one month. Whereas, NSFR was introduced to ensure circulars/instructions issued by Bangladesh Bank
resilience over a longer horizon (1 year) by creating from time to time. In preparing consolidated financial
additional incentives for the Bank to fund its activities with statements, the Bank and its subsidiaries’ financial
more stable sources of funding on an ongoing structural statements are combined on a line by line basis
basis. The Bank prepares LCR and NSFR and submits by adding together like items of assets, liabilities,
to Bangladesh Bank on monthly and quarterly basis equity, income and expenses. However all intra
respectively. group balances, transactions, profits and losses are
eliminated in full.
The Pillar-II of Basel-III framework is the Supervisory Review
Process (SRP). According to the key principles of SRP the c) Southeast Bank Limited has four subsidiaries and the
Banks shall have a process for assessing overall capital descriptions are given below.
adequacy in relation to their risk profile and a strategy for
maintaining their capital at an adequate level. SRP covers Southeast Bank Capital Services Limited
additional risks like Residual Risk, Concentration Risk,
Date of Incorporation: September 23, 2010
Liquidity Risk, Reputation Risk, Strategic Risk, Settlement
Risk etc. The Bank assessed its additional capital Date of Commencement: September 23, 2010
requirement under Pillar-II and submitted the statements Authorized Capital : BDT.6,000 million
on Internal Capital Adequacy Assessment Process (ICAAP) Paid up Capital : BDT.5,500 million
to Bangladesh Bank for the year 2015. The Bank conducts
Ownership Interest in Capital : BDT.5,489.93 million
stress testing on its financials on quarterly basis and (99.82%)
Southeast Financial Services (UK) Limited up capital, statutory reserve, general reserve, retained
earnings, minority interest in subsidiaries etc.
Date of Incorporation: February 22, 2011
Date of Commencement: September 26, 2011 Tier-2 capital is composed of general provision,
subordinated debt, revaluation reserves etc.
Paid up Capital : BDT 38.49 million
Ownership Interest in Capital : 100.00% Capital requirement rules
The Bank is required to maintain the following ratios on an
Southeast Financial Services (Australia) Pty Limited ongoing basis:
Date of Incorporation: March 18, 2013
i. Common Equity Tier 1 of at least 4.5% of the total
Date of Commencement: March 18, 2013 RWA.
Capital : BDT 25.06 million
ii. Tier-1 capital will be at least 6.0% of the total RWA.
Ownership Interest in Capital : 100.00%
iii. Minimum CRAR of 10% of the total RWA.
Southeast Exchange Company (South Africa) Pty
iv. Additional Tier 1 capital can be admitted maximum
Limited
up to 1.5% of the total RWA or 33.33% of CET1,
Date of Incorporation: December 15, 2014 whichever is higher.
Date of Commencement: December 15, 2014
v. Tier 2 capital can be admitted maximum up to 4.0%
Capital : BDT 50.10 million of the total RWA or 88.89% of CET1, whichever is
Risk management
Ownership Interest in Capital : 100.00% higher.
vi. In addition to minimum CRAR, Capital Conservation

The BRPD circular 02 dated 16 January 2014 regarding
Buffer (CCB) of 2.5% of the total RWA is being
‘Single Borrower Exposure Limit’ is being applied by the
introduced which will be maintained in the form of
Bank in determining maximum amount of finance to the
CET1.
subsidiaries of the Bank. As on year end 2016, the Bank
had a credit line to Southeast Capital Services Ltd of BDT
Following is the phase-in arrangement for the
2863.90 million.
implementation of minimum capital requirements:
Quantitative Disclosures
Particulars 2015 2016 2017 2018 2019
d) Southeast Bank Ltd has four subsidiaries: Southeast
Minimum
Bank Capital Services Limited, Southeast Financial
Common Equity
Services (UK) Limited, Southeast Financial Services 4.5% 4.50% 4.50% 4.50% 4.50%
Tier-1 Capital
(Australia) Pty Limited and Southeast Exchange
Ratio
Company (SouthAfrica) Pty Limited. Assets and
liabilities of these subsidiaries are consolidated with Capital
the financials of the parent company. There is no Conservation - 0.625% 1.25% 1.875% 2.50%
capital deficiency in the financial year 2016. Buffer
B) CAPITAL STRUCTURE Minimum CET-

1 plus Capital
Qualitative Disclosures 4. 5% 5.125% 5.75% 6.375% 7.00%
Conservation
Buffer
a) The regulatory capital under Basel-III is composed of
(I) Tier-1 (Going-concern Capital) and (II) Tier-2 (Gone- Minimum
5.50% 5.50% 6.00% 6.00% 6.00%
concern Capital). From regulatory capital perspective, T-1CapitalRatio
going-concern capital is the capital which can absorb
losses without triggering bankruptcy of the Bank and Minimum Total
10.00% 10.00% 10.00% 10.00% 10.00%
gone-concern capital is the capital which will absorb Capital Ratio
losses only in a situation of liquidation of the Bank.
Minimum
Total Capital
Tier-1 capital is composed of (a) Common Equity Tier 1
plus Capital 10.00% 10.625% 11.25% 11.875% 12.50%
and (b) Additional Tier 1
Conservation
Buffer
Common Equity Tier 1 (CET1) capital consists of paid-
Quantitative Disclosures C) CAPITAL ADEQUACY

BDT in million
b) Regulatory Capital: Consolidated Solo Qualitative Disclosures
Tier-1 capital a) The Bank is presently following Standardized Approach
1) Common Equity Tier- 21,685.52 21,650.38 for assessing and mitigating Credit Risk, Standardized
1 Capital (CET-1) Rule Based Approach for quantifying Market Risk
Fully Paid-up capital 9,169.50 9,169.50 and Basic Indicator Approach for Operational Risk to
Non- repayable share calculate Minimum Capital Requirement (MCR) under
premium account pillar-I of Basel-III framework as per the guidelines of
Bangladesh Bank.
Statutory reserve 9,170.00 9,170.00
General reserve 247.65 247.65 Quantitative Disclosures BDT in million
Retained earnings 3,196.97 3,171.82
Dividend equalization Capital Adequacy Consolidated Solo
Reserve Capital requirement for
b) 24,624.15 24,952.49
Minority interest in 10.00 Credit Risk
subsidiaries Capital requirement for
c) 1,500.50 1,068.73
Regulatory Adjustments Market Risk
Goodwill and all other 108.60 108.60 Capital requirement for
d) 1,915.58 1,904.58
Intangible assets Operational Risk
2) Additional Tier-1 - - Minimum capital
28,040.23 27,925.80
Capital (AT-1) requirement(MCR)
3) Total Tier-1 capital 21,685.52 21,650.38 Total capital maintained 34,056.28 34,021.14
(1+2) Capital surplus over
6,016.05 6,095.34
Tier-2 capital MCR
General 3,569.50 3,569.50 Capital to Risk
provision(unclassified e) Weighted Assets 12.15% 12.18%
loans, SMA, off balance Ratio(CRAR)
sheet) CET-1 to RWA ratio 7.73% 7.75%
Subordinated debt 7,400.00 7,400.00 Tier-1 Capital to RWA
Revaluation Reserves as 2,335.43 2,335.43 7.73% 7.75%
ratio
on December 31, 2014
(50% of Fixed Assets Tier-2 Capital to RWA
4.41% 4.43%
and Securities & 10% of ratio
Equities) Capital Conservation
f) 0.625% 0.625%
All other preference shares Buffer (Required)
Regulatory Adjustments Available Capital under
g)
Revaluation Reserves for 934.17 934.17 Pillar 2 Requirement 6,016.05 6,095.34
Equity Securities (Phase in D) CREDIT RISK
Guidelines) Qualitative Disclosures
4) Total Tier-2 capital 12,370.76 12,370.76
a) Credit risk is the potential loss that may arise from a
c) Regulatory
borrower’s failure to repay a loan or meet its obligation in
Adjustments
accordance with agreed term.
Revaluation Reserves for 934.17 934.17
Equity Securities (Phase in Credit Approval
Guidelines) Bank’s credit risk management guideline has been
Goodwill and all other 108.60 108.60 prepared in line with Bangladesh Bank guidelines
Intangible assets illustrating the approval process, delegation of authority
and other credit related important issues. The approval
d) Total eligible capital 34,056.28 34,021.14
process segregates relationship management/marketing
(3+4)
from the approval authority. The approval authorities are
delegated to different levels of management and Board.
Board of Directors of the Bank has the highest level of minimum components to appraise a credit and there are
authority to approve any credit proposal and delegate other analyses depending on the nature of credit.
such authority to the competent authority (EC, MD,
DMD, Branch Manager). The Corporate Banking Division The bank follows the CRG manual of Bangladesh Bank
receives the proposals from the branches and thereafter circulated on December 11, 2005 through BRPD circular
scrutinizes, analyzes and processes in conformity with no. 18. Borrowers are assigned risk grades based on the
Credit Risk Management (CRM) guidelines of Bangladesh qualitative and quantitative factors of their business. There
Bank and forward the memorandum embodying their are 08 grades based on the marks obtained in qualitative
recommendations to the CRM division for scrutiny and quantitative factors. The grades and factors are:
and to ensure that all regulatory procedures/rules and
regulations etc. are complied with. After exercising due Short
diligence by CRM, they convey their observations to Grading marks Number
Name
Corporate Banking/Islamic Banking/SME and Agri Credit
Superior SUP 85-100 1
Division for submitting the proposals to Head Office
Credit Review Committee (HOCRC) and finally forward it Good GD 75-84 2
to the competent authority for approval. Acceptable ACCPT 65-74 3
Marginal/Watch list MG/WL 55-64 4
Credit Administration
Special Mention SM 45-54 5
The Bank accomplishes documentations and makes Substandard SS 35-44 6
disbursements with utmost care to reduce the potential
credit risk. The disbursement authority is given to the Doubtful DF 25-34 7
Risk management
branches within approved limit after the completion Bad & Loss BL <25 8
of necessary documentation. Furthermore, the bank
constantly monitors clients’ repayment behaviors,
fulfillment of conditions given before disbursement and Qualitative and Quantitative factors/
Weight
compliance of covenants in post disbursement period. principal risk components
Financial Risk 50%
Credit Monitoring
Business/Industry Risk 18%
The loan portfolio with classification status is reviewed Management Risk 12%
periodically and brought to the notice of Board of
Directors of the Bank and senior level management Security Risk 10%
regarding down gradation, overdue, special mention Relationship Risk 10%
account (SMA), classified and rescheduled portfolio along
with early alert list for their information and guidance. The Credit Risk Mitigation
Branches are communicated through letters and circulars
for implementation of efficient credit risk management in Potential credit risks are mitigated by taking primary
a proper manner including adherence to the Bank’s and and collateral securities. There are other risk mitigants
Bangladesh Bank’s rules and regulations. They have also like netting agreements and other guarantees. The legal
been advised to follow the guidelines of comprehensive certainty and enforceability of the mitigants are verified
recovery/collection procedures and systems to keep the by the professionals of the respected fields. Collateral
sound wealth of credit portfolio of the bank. types which are eligible for risk mitigation include cash,
residential, commercial and industrial property, land
Credit Assessment and Grading and machinery; marketable securities etc. Collaterals are
physically verified by the officials of the Branches and
Know Your Client (KYC) is the first step to analyze any credit Head Office. At the same time, these are also valued by
proposal. Banker-Customer relationship is established independent third party surveyor in accordance with the
through opening of CD/SB accounts of the customers. credit policy and procedures.
Proper introduction, photographs of the account holders/
signatories, passports etc., and all other required papers as Past Due and Impaired Credit
per Bank’s policy are obtained during account opening.
Physical verification of customer address is done prior to A claim that has not been paid as of its due date is termed
credit appraisal. At least three Cs, i.e., Character, Capital as past due claim. Payment may be for repayment/
and Capacity of the customers are confirmed. Credit renewal/rescheduling or as an installment of a loan.
Appraisals include the details of amount and type of For loan classification and maintenance of specific and
loan(s) proposed, purpose of loan (s), result of financial general provision, Bank follows BRPD circular no-14 and
analysis, loan Structure (Tenor, Covenants, Repayment 19 of 2012, 05 of 2013 and 16 of 2014 and as advised by
Schedule, Interest), security arrangements. The above are Bangladesh Bank from time to time.
Approaches followed for specific and general Maximum 50% of the market value of land and
allowances: building mortgaged with the bank
Consumer 50% of the average market value for last 06 months or

Loans
Short 50% of the face value, whichever is less, of the shares
Financing to All
Term traded in stock exchange.
Particulars Other SMEF BHs/ other
Agri
than HF LP MBs/ Credit Subjective Judgment
Credit
HF, LP SDs Considering the nature and performance of a loan, the
Standard 2.5% 5% 2% 2% 0.25% 2% 1% bank can also classify a particular loan on the basis of
SMA - 5% 2% 2% 0.25% 2% 1% subjective judgment taking into consideration the factors
such as uncertainty or doubt of repayment, continuous
SS 5% 20% 20% 20% 20% 20% 20%
loss of capital, adverse situation, decrease of value of
DF 5% 50% 50% 50% 50% 50% 50% securities, legal suit etc. However, regardless of all rules
B/L 100% 100% 100% 100% 100% 100% 100% and regulations the central bank can classify any loan on
the basis of their subjective judgment and can instruct
NB: CF=CONSUMER FINANCING, HF=HOUSING FINANCE, the bank to make additional provision on non-performing
LP=LOANS FOR PROFESSIONALS TO SET UP loans.
BUSINESS, SMA=SPECIAL MENTION ACCOUNT,
SS=SUBSTANDARD, DF=DOUBTFUL, B/L=BAD/LOSS, Quantitative Disclosures
BHs/ MBs,/SDs= LOANS TO BROKERAGE HOUSES/ b) Total gross credit risk exposures broken down by
MERCHANT BANKS/STOCK DEALERS. major types of credit exposure:
Base for Provision Total gross credit risk exposures by major types: Bangladesh
For the following types of eligible collaterals, provision Bank guidelines on Basel III, stipulated to segregate bank’s
is maintained at the stated rates mentioned above on asset portfolio into different categories, and the following
the base for provision. Base for provision is calculated table shows our gross exposure in each asset category.
deducting interest suspense and the value of eligible BDT in million
collateral from outstanding classified loans.
i. Deposit with the same bank under lien against the Particulars Consolidated Solo
loan a Cash 17,835.45 17,831.24
ii. Government bond/savings certificate under lien, Claims on Bangladesh
iii. Guarantee given by Government or Bangladesh b Government and 54,299.80 54,299.80
Bangladesh Bank
Bank.
c Claims on Banks & NBFIs 18,582.83 18,516.32
For all other eligible collaterals, the provision will be
d Claims on Corporate 110,350.61 110,350.61
maintained at the stated rates mentioned above on the
balance calculated as the greater of the following two e Claims on SME 35,348.11 35,348.11
amounts: Claims under Credit Risk
f 9,505.23 9,505.23
Mitigation
i. Outstanding balance of the classified loan less the
amount of Interest Suspense and the value of eligible Claims categorized as
collateral; and retail portfolio (excluding
g SME, Consumer finance 686.42 686.42
ii. 15% of the outstanding balance of the loan.
and Staff loan ) up to 1
Eligible Collateral crore
The following collateral is included as eligible h Consumer finance 1,411.62 1,411.62

collateral in determining base for provision: Claims fully secured by
i 863.44 863.44
residential property
100% of deposit under lien against the loan
Claims fully secured by
100% of the value of government bond/savings j 2,675.48 2,675.48
commercial real estate
certificate under lien
100% of the value of guarantee given by Government 1. Past Due Claims that
or Bangladesh Bank is past due for 60 days
k or more (Risk weights
100% of the market value of gold or gold ornaments are to be assigned net of
pledged with the bank. specific provision):
50% of the market value of easily marketable
commodities kept under control of the bank
c) Geographical distribution of exposures

Particulars Consolidated Solo
BDT in million
Where specific provisions Dhaka 138,473.58
are less than 20% of the
outstanding amount of 12,382.14 12,382.14 Chittagong 37,770.74
the past due claim
Where specific provisions Rajshahi 4,397.76
are no less than 20% of
Sylhet 4,874.44
the outstanding amount 1,358.47 1,358.47
of the past due claim Region Khulna 2,264.04
Where specific provisions Based
are more than 50% of Rangpur 901.46
the outstanding amount 535.62 535.62
of the past due claim Barisal 158.02
2. Claims fully secured Mymensingh 524.91
against residential
property that are past Total 189,364.96
due for more than 60
days and/or impaired Domestic 189,364.96
45.86 45.86 Country
specific provision held
there-against is less than Based Overseas
20% of outstanding
amount
Risk management
3. Loans and claims d) Major Industry wise distribution of exposures
fully secured against (Industrial Loan)
BDT in million
residential property that
are past due for more
Textile and Garments Industries
than 60 days and/or 48,935.90
impaired and specific 1.10 1.10 including Spinning Industries
provision held there-
against is no less than Food and allied Industries 6,149.35
20% of outstanding
amount Pharmaceutical Industries 747.70
l Capital Market Exposure 2,500.64 0.01
Chemical, Fertilizer, etc. 78.41
Investment in equity
and other regulatory Cement and Ceramic Industries 3,455.07
capital instruments
issued by other banks
Service Industries 2,724.60
and Merchant Banks/
Brokerage Houses/
m 6,779.52 Other Industries 21,148.18
Exchange Houses which 1,261.49
are not listed in the Stock
Exchanges (other than Total 83,239.21
those deducted from
capital) held in banking
book e) Residual contractual maturity breakdown of the
Investments in premises,
whole portfolio
n plant and equipment 8,947.16 8,613.69
BDT in million
and all other fixed assets On demand 43,794.11
Claims on all fixed assets
o Less than three months 24,803.47
under operating lease
p All other assets More than three months but less than
50,941.23
i) Claims on GoB & BB 1,297.88 1,297.88 one year
ii) Staff loan 207.62 207.62 More than one year but less than five
47,341.37
iv) Claims on Offshore years
- -
Banking Unit More than five years 22,484.78
v) Others 1,803.73 1,662.15
Total 189,364.96
Total 281,900.72 284,372.34
f) Major Industry type amount of impaired loans Quantitative Disclosures

BDT in million b) Values of investments as disclosed in the Balance
Agriculture 6.80 Sheet:
BDT in million
Large and Medium Scale Industries 2,001.10
Consolidated Solo
Small and Cottage Industry 262.60
Cost Market Cost Market
Exports 116.10 Price Price Price Price
Commercial Lending 3,362.30 Unquoted
61.49 61.49 61.49 61.49
Share
Finance to NBFIs 0.00
Quoted
Real Estate 1,503.90 6,170.34 5,138.13 3,893.72 2,979.31
Share
Retail Banking 33.00
Transport & Communication 270.90 c) For Banking Book Equity
BDT in million
Credit Card 63.20
Consolidated Solo
Others 1,638.00
The cumulative realized
Total 9,257.79 gains (losses) arising from
- -
sales and liquidations in the
g) Gross Non Performing Assets (NPAs)
BDT in million reporting period
Gross Non Performing Assets (NPAs) d) For Banking Book Equity
Nonperforming assets to outstanding Consolidated Solo

4.89%
loans and advances Total unrealized
- -
gains(losses)
Movement of Non Performing Assets
Total latent revaluation
(NPAs): - -
gains (losses)
Opening balance 7,193.80 Any amounts of the above
- -
included in Tier 2 capital
Additions 7,226.90
e)
Reductions 5,162.90
BDT in million
Closing balance 9,257.79 Capital
Particulars
Requirement
Movement of specific provisions for NPAs:
Unquoted Share 7.69 7.69
Opening balance 2,323.30
Quoted Share 1,027.63 595.86
Provision made during the period 2,433.70
Write off 1,028.70 As equities do not have any maturity, we have calculated
risk weighted assets for unquoted equities on the basis of
Write back of excess provisions - fixed risk weight which is 125% of investment value. And
for quoted share capital charge is 10% for both specific
Closing balance 3,728.30 and market risks.
E) EQUITIES: DISCLOSURES FOR BANKING BOOK F) INTEREST RATE RISK IN THE BANKING BOOK (IRRBB)
POSITIONS
Qualitative Disclosures
Interest rate risk affects the bank’s financial condition due
a) Banking book positions consist of those assets which to adverse movements in interest rates of interest sensitive
are bought for holding until they mature. The bank assets. Changes in interest rates have two types of impact:
treats unquoted equities as banking book assets.
Unquoted equities are not traded in the bourses or in i. Earnings perspective: It affects a bank’s earnings
the secondary market, they are shown in the balance by changing its net interest income and the level
sheet at cost price and no revaluation reserve is of other interest sensitive income and operating
created against these equities. expenses.
ii. Economic value perspective: The economic value earnings perspective, the bank uses Maturity Gap analysis,
of future cash flows changes when interest rate Duration Gap analysis, Sensitivity Analysis and marked to
changes. market method and for measuring foreign exchange risk,
the bank uses VaR analysis.
At present SEBL is following the Bangladesh Bank
prescribed format for assessing the economic value due We use standardized (Rule Based) method for calculating
to interest rate shock. capital charge against market risks for minimum capital
requirement of the Bank under Basel-III.
Market Risk Management System
i. Earnings perspective:
Here, we have used maturity gap method to measure The Bank has its own Market Risk Management System
changes in earnings due to changes in interest rates which includes Asset Liability Risk Management (ALM)
BDT in million and Foreign Exchange Risk Management under the core
risk management guidelines.
Net
Up to 12 interest
Asset Liability Management (ALM): The ALM policy
Month Percentage changes in income
specifically deals with liquidity risk management and
(Cumulative interest rate and
interest rate risk management framework.
Gap) re-pricing
impact
Foreign Exchange Risk Management: Foreign exchange
1% increase in interest
Risk management
(240.38) risk arises when the bank is involved in foreign currency
rate
transactions. These include foreign currency exchange,
1% decrease in interest placement, investments, loans, borrowings and different
240.38
rate contractual agreements. We use different hedging
2% increase in interest techniques to mitigate foreign exchange risks.
(480.76)
rate
(24,038.42)
2% decrease in interest Policies and processes for mitigating market risk are
480.76
rate mentioned below:
3% increase in interest
(721.14) Risk Management and reporting is based on
rate
parameters such as Maturity Gap Analysis, Duration
3% decrease in interest
721.14 Gap Analysis, VaR etc, in line with the global best
rate
practices.
G) MARKET RISK Risk Profiles are analyzed and mitigating strategies/
Qualitative Disclosures processes are suggested by the Asset Liability
Committee (ALCO).
View of the Board of Directors on trading/investment
activities Foreign Exchange Net Open Position (NOP) limits
(Day limit / Overnight limit), deal-wise trigger
Market risk arises due to changes in the market variables limits, Stop-loss limit, Profit / Loss in respect of
such as interest rates, foreign currency exchange rates, cross currency trading are properly monitored and
equity prices and commodity prices. The financial exception reporting is regularly carried out.
instruments that are held with trading intent or to hedge
against various risks, are purchased to make profit from Holding of equities is monitored regularly so that
spreads between the bid and ask price are subject to investment remains within the limit as set by
market risk. SEBL is exposed to market risk mostly stemming Bangladesh Bank.
from Government Treasury Bills and Bonds, Shares of listed
Public Limited Companies, foreign currency etc. Asset Liability Management Committee (ALCO)
analyzes market and determines strategies to attain
Methods used to measure Market Risk business goals.
There are several methods used to measure market risk Reconciliation of foreign currency transactions
and the bank uses those methods which are deemed fit
for a particular scenario. For measuring interest risk from
Quantitative Disclosures the inspection teams of Bangladesh Bank and External

Auditors conduct inspection of different branches and
The capital requirements for: divisions at Head Office of the Bank and submit reports
BDT in million presenting the findings of the inspections. Necessary
Particulars Consolidated Solo control measures and corrective actions have been taken
on the suggestions or observations made in these reports.
Interest rate risk 430.47 430.47
Approach for calculating capital charge for
Equity position risk 1,027.63 595.86
operational risk
Foreign exchange risk 42.40 42.40
The Bank has adopted Basic Indicator Approach (BIA) to
Commodity risk - - compute capital charge against operational risk under
Total 1500.50 1068.73 Basel-III as per Bangladesh Bank Guidelines.
H) OPERATIONAL RISK
BDT in million
Particulars Consolidated Solo
Views of the Board of Directors on system to reduce The capital
Operational Risk requirements for 1,915.58 1,904.58
operational risk
Operational risk is the risk which may arise directly or
indirectly due to failure or breakdown of system, people
Calculation of Capital Charge for Operational Risk
and process. This definition includes legal risk, but
(Consolidated)
excludes strategic and reputation risk. The bank manages
these risks through a control based environment in which Basic Indicator Approach
processes are documented, authorization is independent
and transactions are reconciled and monitored. This is
Gross 15% of
supported by a periodic process conducted by ICCD, and Average
Year Income Average
monitoring external operational risk events, which ensure GI
(GI) GI
that the bank stays in line with the international best
practices. December, 2014 12,670.92
Performance Gap of Executives and Staffs December, 2015 12,071.43

12,770.56 1,915.58
December, 2016 13,569.32
The bank believes that training and knowledge sharing
is the best way to reduce knowledge gap. Therefore, it Total GI 38,311.67
arranges trainings on a regular basis for its employees
to develop their expertise. The bank offers competitive
I) LIQUIDITY RATIO
pay package to its employees based on performance
and merit. It always tries to develop a culture where all Qualitative Disclosures
employees can apply his/her talent and knowledge to
Views of the Board of Directors on system to reduce
work for the organization with high ethical standards Liquidity Risk
in order to add more value to the company and for the
economy. Southeast Bank Limited has proficient Board of Directors
that has always been giving utmost importance to
Policies and processes for mitigating operational minimizing the liquidity risk of the bank. In order to reduce
risk liquidity risk strict maintenance of Cash Reserve Ratio
(CRR) and Statutory Liquidity Reserve (SLR) is also being
The Bank has adopted policies which deal with managing emphasized on a regular basis. Apart from these as part
different Operational Risk. Bank strongly follows KYC norms of Basel-III requirement Liquidity Coverage Ratio (LCR)
for its customer dealings and other banking operations. and Net Stable Funding Ratio (NSFR) are also maintained
The Internal Control and Compliance Division of the Bank, under the guidance of our honorable Board of Directors.
Methods used to measure Liquidity Risk Banks have a range of financial incentives to operate with
In order to measure liquidity risk various methods are high leverage. But it creates risk when it crosses a certain
being used which are as follows: point. Therefore, the Board views that sound prudential
controls are needed to ensure that the organization
GAP analysis is being done regularly that deals with maintains a balance between its debt and equity. The
the mismatch of assets and liabilities in different Board also believes that the bank should maintain its
time buckets like 0-30 days, 31-90 days, 91-180 days, leverage ratio on and above the regulatory requirements
181-270 days, 271-365 days and beyond 1 year. In which will eventually increase the public confidence in
our monthly ALCO paper, we show this GAP analysis the organization.
based on which different strategic decisions are
taken in order to reduce liquidity risk that may arise Policies and processes for managing excessive on
due to the mismatch between assets and liabilities. and off-balance sheet leverage
Cash flow forecasting is another technique to The leverage ratio is a non ¬risk based approach to the
measure liquidity risk that may arise due to future measurement of leverage. The ratio acts as a ‘backstop’
cash flow mismatch. In our monthly ALCO paper we against the risk-based capital requirements and is
show this cash flow forecasting. also designed to constrain excess leverage. There are
three types of leverage: balance sheet, economic, and
Liquidity Risk Management system embedded. Under Basel III, the Bank has to maintain a
As part of liquidity risk management system, we have leverage ratio in excess of 3% of its exposures. The leverage
Board approved liquidity contingency plan. In this ratio is intended to achieve the following objectives:
liquidity contingency plan, we have incorporated all the a) Constrain the build-up of leverage in the bank
Risk management
strategic decisions to tackle any sort of liquidity crisis. As
b) Reinforce the risk based requirements with an easy to
per the Bangladesh Bank ALM guideline, this liquidity
understand and a non-risk based measure.
contingency plan is reviewed annually which is approved
by the Board of Directors. To manage excessive leverage, the Bank follows
all regulatory requirements for capital, liquidity,
Policies and processes for mitigating Liquidity risk commitment, Advance Deposit Ratio (ADR), Maximum
Cumulative Outflow (MCO), large exposures as well as risk
We have Board approved policies named “Medium to Long
management which are eventually reinforcing standards
Term Liquidity Management Policy (LMP)” for mitigating
set by Bangladesh Bank. The aim is to ensure that the high
liquidity risk. This policy is reviewed annually and placed
leverage inherent in banking business models is carefully
before the Board of Directors for their kind approval.
and prudently managed.
Approach for calculating exposure
BDT in million
Leverage ratio reflects the Bank’s tier 1 capital (the
Liquidity Coverage Ratio (LCR) 118.50%
numerator) over total exposure (the denominator), which
Net Stable Funding Ratio (NSFR) 109.53% includes its balance sheet exposures and certain off-
balance sheet exposures.
Stock of High quality liquid assets 72,491.18
Total net cash outflows over the next The capital measure for the leverage ratio is based on
61,174.85
30 calendar days the Tier 1 capital. The exposure measure for the leverage
Available amount of stable funding 239,231.80 ratio follows the accounting measure of exposure. In
order to measure the exposure consistently with financial
Required amount of stable funding 218,417.32 accounts, the followings are applied by the bank:
J) LEVERAGE RATIO 1. On balance sheet, non-derivative exposures will be
Qualitative Disclosures net of specific provisions and valuation adjustments
2. Physical or financial collateral, guarantee or credit risk
Views of the Board of Directors on system to reduce
mitigation purchased is not considered to reduce on-
excessive leverage
balance sheet exposure.
Leverage is an inherent and essential part of modern
3. Netting of loans and deposits is not considered.
banking business. In other words, banks are highly
leveraged organizations which facilitate leverage for Off-balance sheet (OBS) items are calculated by applying
others. Leverage, in simple terms, is the extent to which a a uniform 100% credit conversion factor (CCF). For any
bank funds its assets with borrowings rather than capital. commitments that are unconditionally cancellable at any
More debt relative to capital means a higher level of time by the bank without prior notice, a CCF of 10% is
leverage. applied.
Quantitative Disclosures The risk and compliance related employees are carrying
BDT in million out the activities independently in line with delegation
of powers and job descriptions approved by appropriate
Particulars Consolidated Solo authorities.
c. Description of the ways in which current and
Leverage Ratio 6.14% 6.13%
future risks are taken into account in the
On balance sheet remuneration processes:
288,083.49 288,205.42
exposure When implementing remuneration measures, the
Bank considers business risk, financial and liquidity risk,
Off balance sheet compliance and reputational risk for each official.
65,343.13 65,343.13
exposure
Various types of measures are taken into account in
Total exposure 353,318.01 353,439.95 determining these risks. The measures focus on the
organizational goals set for operational areas. Asset quality
K) REMUNERATION (NPL ratio), cost-income ratio, net profit growth etc. are
used for measuring the risks.
Qualitative Disclosure
a. Information relating to the bodies that oversee The performance of each employee is evaluated for a
remuneration: particular period especially annually against performance
indicators set and agreed with the officials at the
The Human Resources Division of the Bank oversees beginning of the year. Performance differs from employee
the remuneration in line with its HR policy under direct to employee and this affects the remuneration package.
guidance of the Board of Directors of the Bank.
In the year 2016, there has been no material change that
A committee comprising of few members of senior could create impact on the remuneration.
Management (Additional Managing Director and Deputy
Managing Directors) led by the Managing Director is d. Description of the ways in which the bank seeks
responsible for formulating remuneration policy. The to link performance during a performance
Head of Human Resources Division acts as the Member measurement period with levels of remuneration:
Secretary of the committee.
The Bank has one set of Performance Appraisal Form (PAF)
The remuneration committee is the main body for to evaluate the performance of all categories of officials of
overseeing the Bank’s remuneration. The committee the bank. The PAF has 3 (Three) parts i.e. (i) Key Performance
reviews the position of remuneration and recommend Indicators, (ii) Personal Attributes and (iii) Job Related Skills
to the Board of Directors for approval taking into and Competencies. Key Performance Indicators (KPIs) are
consideration present cost of living index, rate of inflation deposit, investment and profit target oriented.
and the existing remuneration of peer banks.
The Bank does not have any external consultant in Decisions about promotion, granting of annual increment
preparing and implementing the remuneration policy. and incentive bonus are linked to the performance of the
employees against set Key Performance Indicators.
The Bank follows a non-discriminatory policy in respect of
remuneration and benefits for Head quarter and regions. e. Description of the ways in which the bank seek
However, a foreign posting allowance in remuneration to adjust remuneration to take account of longer-
is in practice for employees who are posted outside term performance:
Bangladesh.
The Bank does not seek to adjust remuneration to take
b. Information relating to the design and structure account of longer-term performance.
of remuneration processes:
f. Description of the different forms of variable
The motto of the remuneration policy is to attract remuneration that the bank utilizes and the
and retain productive employees who can contribute rationale for using these different forms
substantially to the overall growth of the Bank. The The Bank pays variable remuneration such as, Technical
remuneration policy is carefully designed and regularly Allowance for the officials of Information Technology
updated to provide adequate incentives so that the Division, Alternative Delivery Channel (ADC) Unit,
employees are fully committed to do their best to achieve Surveillance Allowance for the Head/Supervisor, In-
the operational goals of the Bank. charges & Operators of Central Monitoring System
The committee reviewed the salary structure of a few (CMS) of Head Office and Charge Allowance for Heads of
grades in the year 2016 and the authority concerned Branches. Those allowances are paid taking into account
approved upward revision of the pay packages of the the special and technical nature of the job they perform.
employees of those grades as an incentive for posting
better result.
Quantitative Disclosure
Number of meetings held by the main body overseeing

03 (three) meetings of remuneration committee were held and
remuneration during the financial year and remuneration
no remuneration was paid to the members
paid to its matter
Number of employees having received a variable 212 employees received a variable remuneration in the year
remuneration award during the financial year 2016
Number and total amount of guaranteed bonuses awarded 2 (two) guaranteed bonuses were awarded and the total
during the financial year amount of bonus was Taka 139.34 Million
Number and total amount of sign on awards made during
No amount was paid as sign-on awards
the financial year
Number and total amount of severance payments made
No payment was paid as severance
during financial year
Total amount of outstanding deferred remuneration, split
into cash, shares and share-linked instruments and other
Not Applicable
forms. Total amount of deferred remuneration paid out in
the financial year
Amount
Particulars
Breakdown of amount of remuneration awards for the (BDT in million)
financial year to show: Fixed 139.34 Total
fixed and variable. Variable 10.51 149.85
Risk management
deferred and non-deferred. Deferred 0
different forms used (cash, shares and share linked
instruments, other forms) Non- deferred 149.85
Form used (cash) 149.85
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 Not Applicable
reversals or downward revaluation of awards) of deferred
remuneration and retained remuneration:
Total amount of outstanding deferred remuneration and
retained remuneration exposed to ex post explicit and/or Not Applicable
implicit adjustments
Total amount of reductions during the financial year due to
Not Applicable
ex post explicit adjustments
Total amount of reductions during the financial year due to
Not Applicable
ex post implicit adjustments
Capital Market Exposure

Southeast Bank Limited (SEBL) has its own portfolio investment in the listed shares. Despite the dull scenario in the
capital market, SEBL has done fairly well due to its prudent managerial capacity and adopting right decision at the right
time. Bank’s total exposure in the capital market was BDT 4,523.50 million (21.53 percent of total capital of the bank) as
on December 31, 2016. The Bank’s loan exposure to Southeast Bank Capital Services Limited for BDT.2833.20 million was
fully paid off by way of increase of Paid up Capital of the Subsidiary Company to BDT 5,500.00 million. It was approved
by Bangladesh Bank by their Letter No. BRPD(R-1)717/2016-4328 dated 28 June, 2016. The total exposure of the Bank is
within the prescribed exposure limit of 25 percent as per Bank Companies Act (Amendment) Act 2013. The capital market
experienced downward trend in the year 2016 though in the last quarter of 2016 the market rebounded a bit. It is hoped
that the market will improve further in 2017 and we will be able to gain more from the capital market investment in 2017
complying with all applicable rules and regulations of the regulatory authority.
Sustainability
Appraisal and
Integrated
Reporting
The pressure of adversity is the
most powerful sustainer of
accountability
SUSTAINABILITY APPRAISAL AND INTEGRATED REPORTING
Sustainability Report - At A Glimpse 180

Report on Corporate Social Responsibility 182
Environment Related Initiatives 186
Green Banking Initiatives – Environmental and Social Obligation 188
Integrated Reporting 189
Report on Human Capital and HR Accounting 191
Contribution to National Economy 193
Value Added Statement 194
Economic Value Added Statement 195
Market Value Added Statement 196
Communication to Shareholders and Stakeholders 197
Sustainability Report – At A Glimpse

General Overview development is a development that meets the needs of
the present without compromising the ability of future
Prosperity, environmental protection, and social justice generations to meet their own needs. Our core purpose
are considered to be the core of every economy. is to serve them as well as our communities. We provide
Sustainable Banking creates long-term resilient and trust and growth through serving customer, offering
sustainable economic, social and environmental values. It products and services, and carrying out other activities.
also facilitates development of a responsible and inclusive
strategy through transparent and efficient utilization of Client centricity is becoming firmly embedded in our
resources. culture. We always offer simple, transparent, and cost
effective products and services which help our customers
We believe sustainability must lie at the heart of business to choose the right product. We actively involve our
if it is to achieve the long-term success that allows it to clients in developing and improving our services. Every
contribute to the economic well-being of society. Our product and service is examined to see what value it adds
success as a Bank is linked intrinsically to the welfare of for them and how it contributes to building lasting client
the society. To achieve this we align our business and relationships.
sustainability strategies as closely as possible. We believe
that sustainability and business go hand in hand. Currently, the Bank is offering different types of products
and services according to our customer needs. As a result,
Sustainability Report our customer base is increasing day by day. Besides
conventional and Islamic banking services, the Bank
This sustainability report articulates how we perceive and provides alternative delivery channels like ATM, internet
practice sustainability at SEBL, the way we incorporate banking, online banking and mobile banking (Telecash)
sustainability into our business model, both in terms etc.
of business opportunities and risk management. Our
strategy for sustainability is rooted into four steps: Serving Society and Environment
We believe that a stable environment and a strong

economy are correlated and precondition for progress
of the country. We acknowledge our social responsibility
Serving Customers well and align our business strategies with our culture.
SEBL is working towards improving the energy efficiency
of its operations and optimizing the use of resources. We
are concentrating our efforts on reducing our energy
consumption and waste generation. We track energy
Supporting Human consumption and waste production at our branches and
Communities Sustainability Resources offices in order to make adjustments where possible.
The Bank strives to ensure that its operations are

environment friendly. To promote green banking
the bank has a policy which serves the following
objectives:
Serving Society
& Environment Reducing paperwork, utilizing email to disseminate
information, saving important information
electronically instead of using paper, encouraging
double-sided printing etc;
Serving Customers Reducing electricity consumption, using energy
efficient electronic equipments, replacing normal
Sustainable development is achieved when people bulbs with energy saving bulbs and turning off
grow and fulfill their needs in harmony with the rest of computers, lights, fans, air coolers during unoccupied
the society and the planet. This implies respect for and times;
protection of the environment, human rights, labor
rights and business ethics. The customers are at the Introducing online banking that allows the customers
heart of everything we do. Our definition of sustainable to transfer funds and pay bills through the Internet;
Reducing giving loans to environmentally harmful Engage employees with the Bank and its purpose
projects;
Help our people develop continuously and create
Creating awareness amongst the stakeholders about a Culture of Excellence in which employees are
environmental and socially responsible business encouraged and enabled to develop their expertise
practices; and sharpen their skills.
Human Resources Provide an extensive leadership development

program which grooms managers to become
The Bank considers its human resources as its prime inspiring leaders.
assets and grooms them to excel in every sphere of life.
By providing right technical and professional training, Sustainable Communities
the Bank keeps its employees up to date with the latest
technologies and changes so that they can effectively The Bank is closely related with the communities where it
contribute to the Bank’s strategy of sustainable runs its business. It encourages and engages in programs
development. that promote social and economic development focusing
on health, sports and education. We always extend our
The Bank has a safety policy to ensure sound health of the hands towards disadvantaged and vulnerable groups
staff. This ties in nicely with our HR policy and our ambition of the society. We launched and contributed in different
to be the best place to work. To this end, we offer our programs with the desire to generate more social impact
employees a range of facilities to support their physical, through our activities. It enables us to more effectively
mental, emotional and spiritual well-being. The Bank’s steer the building of expertise and to help people in a
healthy, safe and good working conditions enhance job more systematic way. Our focus is on sports, arts & culture,
enjoyment and reduce the chance of illness, accidents, education, and entrepreneurship, and on identifying the
Sustainability report
injuries and damage. The Bank rewards high performance links between them. We are participating in programs
and superior delivery, but equally gives emphasis on how which make a distinctive contribution to our society.
those results are achieved.
Moreover, the Bank has created a trust in association with
Our Human Resource strategy is designed to attract, The Financial Express and Policy Research Institute as
retain, and motivate the best people in many ways: part of its Corporate Social Responsibility (CSR) to create
awareness in green retention and green business.
Provide a Positive Working Environment
Recognize, Reward and Reinforce the Right Behavior

Report on Corporate Social

Responsibility
Our CSR activities follow transparent business practices Environment
that are based on ethical values, compliance with legal
and regulatory requirement and respect for people, The Bank continuously strives to ensure that its operations
communities and the environment. We are responsible are environment-friendly and discourages financing
for the totality of our impact on people and the planet, projects contrary to it. It has extended its helping hands
beyond making profit. Our corporate social responsibility to initiatives of community leaders for environment
is about addressing the needs of all the stakeholders in a protection and development. It is one of the leading
way that advances its business and makes a positive and participants in the beautification of Dhaka city.
meaningful contribution to the society.
Regulators
Employees
Southeast Bank firmly believes that it is an imperative to
The Bank offers its employees very competitive pay comply with the relevant laws, rules and regulations of
package and bonus that are reviewed on a continuous all regulatory authorities to be a responsible corporate
basis in line with the market dynamics. It provides the citizen.
employees a safe and congenial work environment. It also
offers its employees handsome retirement benefits by Community
way of Contributory Provident Fund, Gratuity etc.
a) We take into active consideration the impact of
Customers our activities on all groups of people involved and
affected by our business operations.
Focusing on the need of customers is fundamental to
banking business. Southeast Bank discharges this vital b) Our credit policy has been redesigned to avoid
responsibility by offering financial products and services concentration of Bank’s credit in major cities and to
that truly meet their needs. In discharging this vital encourage distribution of credit in priority sectors
responsibility, the Bank always strives to maintain the particularly in Agriculture and SMEs.
highest standard of ethics in the conduct of its business.
c) In 2016, the Bank contributed BDT 27,119,394 to
Shareholders finance its scholarship program, green school project
and the ‘SEBL-The Financial Express-Policy Research
The Southeast bank is fully committed to protect the Institute’ Green Award Trust.
interest of its shareholders. It always endeavors to enhance
shareholders’ value by optimizing financial performance Green Award
at least cost.
Corporate citizenship to us means thinking long term
The Bank’s Business Associates and working to integrate social and environmental
considerations into how we run our business. We want to
The Bank continuously endeavors to create a long-lasting inspire the individuals and organizations who are actively
win-win relationship with its suppliers and business working to preserve environment. With that end in view,
associates for mutual growth. the Board of Directors of the Bank in its 395th meeting
held on March 14, 2012 decided to give Green Awards to
institutions and Women Entrepreneurs for really making significant contribution to the preservation of environment. The
award was named, ‘Southeast Bank- The Financial Express – Policy Research Institute Green Award’. Accordingly, a Green
Award Trust has been created comprising the following personalities as trustees:
Sl No Name Background Status

Chairperson, Board of Trustees, East West
1. Mohammed Farashuddin, Ph.D University, Former Governor, Bangladesh Chairman
Bank
A renowned business personality and
2. Yussuf Abdullah Harun, FCA Member
former president of the FBCCI
3. Dr. Zaidi Sattar Chairman, Policy Research Institute Member
4. A.H.M. Moazzem Hossain Editor, The Financial Express Member
President, Bangladesh Society for Training
5. Saadat Husain, Ph.D and Development and Former Cabinet Member
Secretary, Govt. of Bangladesh
Advisor, Southeast Bank Limited, Former
6. Zakir Ahmed Khan Secretary, Ministry of Finance, Govt. of Member
Bangladesh
Managing Director (Current Charge),
7. M. Kamal Hossain Member
Professor Emeritus, Centre for Climate
8. Professor Ainun Nishat, Ph.D Change and Environmental Research, BRAC Member
University
Former Dean & Professor of Department of
9. Professor Shahnaz Huq Hussain Geography and Environment, University of Member
Dhaka
Independent Director, Southeast Bank Ltd.,
10. Dr. Quazi Mesbahuddin Ahmed Former Managing Director, Palli Karma- Member
Sahayak Foundation (PKSF)
Manager, CSR & Administration, Southeast
11. Md. Khursheed Alam Member Secretary
Bank Foundation
The Green Awards were decided to be given in the following two categories:
Category 1: Leadership in Sustainable Green Business and Operation
Category 2: Leadership in Sustainable Community Development and Poverty Reduction.
A few CSR expenditures of the Bank in 2016 are given below
Amount in Recipient Organization/

Sl. No. Date Purpose
BDT Individuals
Dhaka University Alumni To sponsor "Hironmoyee Alumni
1 18/01/2016 2,000,000
Association (DUAA) Melobondho -2016" program.
Law and order coordination
To contribute in the CCTV
2 27/01/2016 2,500,000 committee of Dhaka Metropolitan
Surveillance project to ensure security
Police (DMP)
Seven Bereaved family members of To support the bereaved families in
3 24/02/2016 3,360,000
BDR carnage their living
Society for the Welfare of Autistic To sponsor a workshop on Autism to
4 1/03/2016 500,000
Children create awareness
Bangladesh Society of For organizing "6th South Asian
5 8/03/2016 200,000
Neurosurgeons Neurosurgical Congress"
Amount in Recipient Organization/

Sl. No. Date Purpose
BDT Individuals
For the construction of "Proyash
Army Head Quarter, Adjutant
6 26/04/2016 10,000,000 School" for physically challenged
General's Branch
children
Mr. Md. Shohel Rana, a damaged To help him in the medical treatment
7 29/03/2016 250,000
kidney patient of his damaged kidneys
For carrying out the relief work for
8 26/06/2016 15,000,000 Prime Minister's Relief Fund the poor and deprived people of the
country
To procure rickshaw van and plastic
The Mayor of Chittagong city
9 18/07/2016 200,000 bin to keep the environment neat and
corporation
clean
Faculty of Business Studies, Dhaka
10 27/07/2016 2,700,000 For installation of a lift in MBA Building
University.
For carrying out relief work for flood
11 7/8/2016 7,500,000 Prime Minister's Relief Fund
affected people of the country
To sponsor and contribute to their
12 28/08/2016 500,000 Sammilito Nagorik Samaj
activity for social upliftment
For construction of the mosque in the
13 5/9/2016 1,000,000 Ratanpur Jame Moshjid
village
Mr. Pear Ahmed, Assistant Teacher, For medical treatment of cancer of
14 23/10/2016 500,000
Daiya BIBI Azimiya Islamia Madrasha his son
For purchasing a Double Cabin
Pick-up Van to support the law
15 29/11/2016 2,462,872 Bhaluka Model Thana
enforcement activity of Bhaluka
Model Thana.
Department of Information
16 29/11/2016 6,540,000 Science and Library Management, For modernization of computer lab
University of Dhaka
Arts Faculty, Arts Building,
17 15/12/2016 7,210,000 For modernization of the building
University of Dhaka
Department of Information
18 15/12/2016 3,850,000 Science and Library Management, For modernization of the building
University of Dhaka
For purchasing blankets to help them
19 22/12/2016 17,420,000 For cold-hit people
in the cold
For the distribution of winter clothes
20 6/12/2016 10,000,000 Prime Minister's Relief Fund
for cold-hit people of the country
Southeast Bank Foundation (SEBF)

With a view to discharging Corporate Social Responsibilities Foundation has established an English medium school
in a most organized way, Southeast Bank Foundation was “Southeast Bank Green School” at Mohammadpur, one of
founded by Southeast Bank Limited. Because of having the densely populated areas of Dhaka Metropolitan City.
effective and organized frameworks, it has succeeded It comprises of two adjacent buildings centrally located in
in undertaking a number of CSR programs, such as, the midst of a number of Housing Societies.
Scholarship for poor but meritorious students, English
medium school etc. On September 2013, the journey of the first session of the
school began. The school offers classes for children aged
The scholarship program of SEBF began its march in the 3 through kindergarten all the way up to 10th grade (O’
year 2009. It is aimed at helping the promising and brilliant level) and follows edexcel British curriculum. The school
learners coming from poor families. The scholarship as is equipped with all available modern amenities and
launched had two dimensions: one for school level and facilities. Currently, 19 teachers are putting their relentless
the other for HSC level students. The program was further effort to teach the students. As a part of the extra-
strengthened by covering scholarship at graduation level curricular activities, the teachers and students celebrate all
in 2011. national- cultural events. With its ongoing performance,
the school has succeeded in drawing keen interest among
At the school level, the Foundation materializes its project the dwellers of the area. We are very much optimistic that
with the sincere co-operation of SEBL branches. In the in no time, it will emerge as one of the leading schools
year 2015, the foundation took care of 52 students and in Dhaka city. Based on the experience of this school, the
out of them 32 will appear at the SSC examination of 2017. Foundation is contemplating to expand its branches in
other locations of Dhaka city.
For students of the higher secondary level, the news
of scholarship initially comes into light through the CSR expenditure under Southeast Bank Foundation
advertisement in the widely read daily newspapers. In for the year 2016
addition, it is also made available in the Bank’s web site.
In 2014, the total recipients of scholarship at the HSC level Education
was 206. In the session 2015-16, the Foundation received
around 1600 applications for scholarship. After scrutiny Scholarship Project
and conducting viva voce, the Foundation eventually
finalized a list of 200 candidates for the scholarship. Thus Level Amount (Tk.)
the total number of scholarship recipients stands at 400. In School (class vi-x) 870,400
the year 2016 (session 2016-17), around 1000 scholarship
seekers have sent their application to the Foundation. The College level 8,826,500
scrutiny of the applications is under way. University level 6,360,000
Total expenditure on Scholarship
The announcement of scholarship for the students 16,056,900
project
of the Graduation level is also first published in the
daily newspapers. It is also made available in the Bank’s Southeast Bank Green School project 10,087,397
website. In the academic session 2011-2012, scholarships Total expenditure on education 26,144,297
were awarded to 75 applicants. In the academic session
2012-2013, as many as 75 students were nominated
Others Amount (Tk.)
for scholarship. In the next session 2013-2014, total 60
students were selected for the purpose. Again for the Donation to Late Poet Samsur
480,000
session 2014-15, the Foundation managed to select yet Rahman family
another 60 candidates. Thus the number of recipients of
Total expenditure on others 480,000
scholarship at the graduation level in the reporting year
stands at 270. Grand Total 26,624,297
Southeast Bank Green School In 2016, Southeast Bank spent total BDT 135.85 million as
donations for education, sports, art, culture, promotion
Considering the predominating demand for quality of national heritage, improvement of the condition of
education at the grooming stage of life, the Foundation autistic children, promotion of women entrepreneurs,
initiated a school project for the kids of families with health-care, community development, relief operation,
moderate income. To materialize this dream, the winter-clothes for the cold-hit poor people, etc.
Environment Related
Initiatives
Southeast Bank aims at facilitating to build a sustainable Enhancing online coverage for clients; for example:
business that brings benefit to our stakeholders, society, ATM, SMS Banking, Internet Banking, mobile Banking
environment and economy as a whole. Our existing etc.
Environmental Policy provides a framework for managing
our environmental impacts, including climate change by The Bank has adopted and implemented a green
establishing a set of commitments to deliver. office guide named ‘Southeast Shobuj Jibon’ for the
Bank. Salient features of this Green Office Guide are
Highlights of ‘Sustainable Finance Activities’ of the Bank as follows:
In 2016 Bangladesh Bank instructed to form a ‘Southeast Shobuj Jibon’ is an initiative that moves
“Sustainable Finance Unit” by abolishing existing
beyond our processes and our customers to cost
Green Banking Unit. The new Unit consists of six (06)
efficient automated channels for building awareness and
members under the supervision of Head of Credit
consciousness for environmental issues. The Bank will
Risk Management (CRM) Division.
introduce a monthly news letter to distribute among the
employees of the Bank to create green awareness which
As per the directives of Bangladesh Bank Southeast
Bank adopted a policy namely “Guidelines on will provide attention to the following aspects:
Environmental Risk Management (ERM)” on
Social, Climate Change and Environmental Risk Save Paper Save Trees (Every ton of paper involves 17
Management (SCERM) in 2011. trees).
A separate policy guidelines for ‘Green Banking’ was Maximum communication through e-mail
adopted in 2011. Purchase recycled paper.
Green Finance activities of the Bank: Print on reusable sheets.
Print multiple pages on single sheets of paper.

Environmental 2014 2015 2016
Activities Set defaults to print double-sided and print on both
sides.
Direct Green BDT.7.80 BDT.32.50 BDT.9.45
Finance million million million Print only the pages required.
In-direct Preview documents before printing.

BDT.13400.00 BDT.17500.00 BDT.14100.00
Green
million million million Increase margin width of the documents.
Finance
Introduction of Biometric Attendance system.
Southeast Bank arranged several training programs
and workshops on green banking and environmental Change the default font size from 12 point to 10
risk management. which would shrink your document by about 10%.
Use e-mail statements.

Environmental Risk has been incorporated in credit
proposals and plays important role in decision Using post-consumer waste recycled paper internally
making. (copy and printer paper) and externally (brochures,
etc.)
The Bank has introduced Green Awards to encourage
Shredding and recycling all paper internally
individuals and organizations who are actively
working to protect the environment and tackle the Sharing electronic files, voice mail and e-mail instead
risks of climate change through green business, of paper memos
environment-friendly operations, community
investment and knowledge management. Both side printing (two-sided) when possible as well
as limiting printed materials.
Conserve Energy, Conserve Natural Resources Turn off the tap while brushing teeth and of course
after use.
Plant or help plant more trees and preventing the cutting
of the existing ones, contribute towards the making of a Always use a cloth bag. Do not use paper or plastic
healthy planet at no extra cost. bags for your grocery.
Pay your bills online. For every 38,000 bills paid online, Global Climate Partnership Fund
5,058 pounds of greenhouse gases are avoided and
two tons of trees are preserved. SEBL takes pride for its partnership with a prominent
Energy Fund named Global Climate Partnership Fund
Use Car pools to go to work. Avoiding 10 miles (GCPF) managed by RespoosAbility AG of Switzerland.
of driving every week would eliminate about 500 In 2016, we could drawdown 2nd tranche of USD 5.00
pounds of carbon dioxide emissions a year. million after successfully utilizing USD 5.00 million in the
year 2015.
Drive responsibly. Every gallon of gas burned emits
20 pounds of carbon dioxide. SEBL under a technical assistance of GCPF engaged
Frankfurt School of Management and Finance (a renowned
Use LED lights. Compact Fluorescents Lights produce
European Educational Institution) for capacity building in
the same amount of light as normal bulbs, but use
Energy Efficiency and Renewable energy financing.
about a quarter of the electricity and last ten times
longer.
Under Another technical assistance of the fund, world
Unplug electronics. Cell phone chargers, TVs, DVD famous “Enclude” Advisory Group of Netherlands is
players, stereos, microwaves and other electronics helping the Bank develop a Social and Environmental
with transformers continue to draw power, even Management Guideline that will be rolled out in 2017.
when they’re off or not charging anything, as long as
they’re plugged in.
Green Banking Initiatives-

Environmental and Social Obligation
Green banking or Sustainable finance refers to any form environment to reduce paper usage and help save trees
of financial service integrating environmental, social and and to reduce energy & water consumption. In 2016,
governance (ESG) criteria into the business or investment southeast Bank developed a new Social and Environmental
decisions for the lasting benefit of both clients and society Risk management system in line with Bangladesh Bank’s
at large. draft guide line, IFC’s Performance Standard (PS) and
Global Climate Partnership Fund Guidelines.
Southeast Bank recognizes that balancing non-financial
factors such as environmental and social issues with The Bank prioritizes and actively seeks projects with direct
financial priorities is an essential part of good corporate or indirect environmental benefits which will contribute in
citizenship, in addition to being fundamental to risk reducing pollution in the country.
management and protecting investors.
Environmental Due Diligence Checklist is meticulously
We recognize that the policies and practices we adopt followed whicle financing new customers and extending
today will shape not only our lives but also those of credit facilities to existing customers. Environmental
future generations. We therefore have an opportunity Risk Rating (EnvRR) is now mandatory for all individual
to make a positive contribution to environmental and customers (corporate, institutional, personal, small and
social concerns by enacting policies designed so that our medium enterprise) whose aggregate facilities are above
business operations do not degrade the environment or the following financing thresholds:
cause social harm. Such policies not only indicate positive
environmental responsibility, but also present business For Small and Medium Enterprise-financing >BDT 2.5
opportunities such as innovative financial products and million
investments in sustainable forestry and renewable energy.
This will help us better manage our risks, develop expertise For Corporate-Financing> BDT 10 million
and provide clients with solutions to evolving exposures.
For Real Estate-Financing> BDT 10 million
To demonstrate our commitment, Southeast Bank has
adopted a comprehensive environmental and social policy. Comparative position of Environmental Risk Rating
The policy implemented with Social & Environmental conducted by the Bank is as follows:
Management System that includes planning, training,
implementation, measurement, reporting and review and Environmental
applies to new business and existing business that comes 2014 2015 2016
Activities
up for renewal or enhancements. Specifically, we integrate Around
environmental and social awareness into the credit Around 630 Around 680
600
analysis and financing decision process and incorporate projects/ projects/
Environmental projects/
it, where appropriate, as part of our due diligence review. clients loan clients loan
Risk Rating clients loan
proposal proposal
We train relevant employees to take responsibility for and proposal
were rated. were rated.
implementation of these policies. were rated.
In this connection, various steps have been taken to

minimize the bank’s direct operational impact to the
Integrated Reporting
Southeast Bank Limited is always committed to implement challenges that have material impact on Southeast Bank
the principles of integrated reporting. This Integrated and its ability to be a sustainable business entity that
Report provides information on how we create value, consistently delivers value to its stakeholders.
considering both qualitative and quantitative matters that
may influence our stakeholders’ decision-making. Assurance Approach:
Our business operation is based on trust and competency. We have an assurance model comprising three lines of
We do believe that the stakeholders are the supreme defenses to ensure the validity and authenticity of the
arbiters regarding the legitimacy and the sustainability information provided in the Annual Report. Our combined
of the entity. Hence, we are committed to leave no stone assurance model has three parts namely, Management
unturned for the assurance of our integrated thinking. Review, Internal Audit Assurance and External Audit
Assurance.
We believe that our approach represents a steady and
considerable level of integrated thinking, which we We have engaged different external assurers and auditors
continue to deepen as we execute our strategy within our to ensure the credibility of the report.
organization. We recognize that embedding integrated
thinking at every level of our organization forms part of Financial Statements Audit Rahman Rahman Huq
our longer-term work to create a culture in which risk Corporate Governance
Syful Shamsul Alam & Co.
management, compliance, ethics and social responsibility compliance
are coordinated with the effective and innovative TAX Consultant Akhter Abbas Khan & Co.
accomplishment of our clients’ needs. This comprehensive
approach is reflected in our report this year. Legal Advisors The Legal Edge
Credit Rating Information
Scope and Boundary of the Report Credit Rating Agency
and Services Ltd. (CRISL)
The Integrated Report covers the period from January 1
to December 31, 2016. The report covers all operational Assured
and Reliable
areas and businesses of Southeast Bank Limited and Management
Review
Internal Audit
Assurance
Extternal Audit
Assurance
Information
to the
its subsidiaries. In the report, we have considered the Stakeholders
reporting of both Financial and Nonfinancial issues as

Non financial information including the strengths and Chart: Combined Assurance Model of information to Stakeholders
weaknesses has material impacts on the decision making

of the Stakeholders and sustainable growth of the Bank. We do believe that our capitals including Human,
Financial, Intellectual, Natural, Manufactured, Social
The report is intended to address the information and Relationship Capital have significant impact on the
requirements of long-term investors. We also present
integrated thinking and sustainable value creation of
information relevant to other key stakeholders, including
the bank. These capitals are interrelated with the value
our staff, clients, regulators and communities etc.
creation for the stakeholders and the society through a
We have prepared and presented financial statements broad range of activities.
and other reports in compliance with the requirements of
Key drivers that Create Value to our organization
Banking Companies Act, 1991 (Amendment in 2013)
Bangladesh Bank Regulations 1. Ensuring quality customer service to ensure customer
Companies Act 1994 satisfaction.
Bangladesh Accounting Standards
2. Maintaining high quality assets portfolio to achieve
Bangladesh Financial Reporting Standards strong and sustainable returns.
Financial Institutions Act 1993
3. Practicing efficient corporate governance and
Securities and Exchange Rules 1987
compliance processes through meeting all regulatory
The Income Tax Ordinance, 1984
requirements and making disclosures.
And other applicable laws and regulations of the
bank 4. Increasing client base for financial inclusion.
5. Strengthening technologies that reduce operational
Materiality risks and promote implementation of best practices
In the preparation of this Integrated Report, we have in the industry.
focused particularly on those issues, opportunities and
Value Creation Process

1. Lending & Investment 5. Our Technological brilliance in Business
Operation
Lending to clients create assets that help us derive interest
income ensuring our financial growth and strength of the Our brilliance in business operation is clinched through
bank. the Technological development to ensure the operational
performance and security of the transactions.
Lending through Loan Products
Strategic investments Incessant Banking Service
Emphasizing Small and Medium Enterprise Financing Efficient Electronic Fund Transfer System
Long term Foreign Currency loan for corporate clients Competent Core Banking System (CBS)
Agricultural and renewable energy financing Mobile and Online Banking
2. Funding 6. Excellence in Client Service
Funding allows the bank to collect deposits and loans Strengthening trust and partnerships with customers by
from our valued customers and investors in various forms focusing on the Bank’s core values of quality customer
to facilitate the lending and business operation of the service, professionalism, teamwork and integrity.
Bank.
Speedying Customer Service through customer need
Mobilizing Low Cost Deposit from retail client base recognition
Capital Accretions Design prominent product facilities
Arranging Funds from overseas sources for Offshore Initiating customer oriented culture
Banking service Strengthening trust and partnerships with customers
Loans from Other Banks Growing as our customers grow
Central Bank Loans and Refinance
7. Strong Corporate Governance and Resource
3. Accessibility to the market Management
With the accessibility to the market, our various business Strong Governance with Regulatory obligation and
products and services work as instruments to explore compliance enables the management to manage the
markets and utilize resources with diverse investment resources with professional efficiency and accountability.
options.
Meeting all regulatory requirements and disclosures
Explore New market through branch establishment Hiring professionals with strong background and
Business And Product segmentation knowledge
Direct Marketing Effective Risk Management
Efficient Internal Control and Regulatory Compliance
4. Employing efficient personnel System
Our efficient workforce with proper planning of

career development and performance appraisal
work professionally for the accomplishment of the
organizational goal.
Planned Work Schedule

Proficient Recruitment and Selection
Scrutinized Performance Appraisal
State-of-the-Art Training and Development
Report on Human Capital and HR

Accounting
Human Resources Division (HRD) of Southeast Bank Organizational Chart
Limited is responsible to manage its human resources in
an effective manner, develop their skills and knowledge The Bank has an organizational chart which outlines
and motivate them to give best efforts for the growth and the roles, responsibilities and relationships amongst
development of the Bank. individuals within the Bank. The Organizational Chart of
Southeast Bank Limited is revised from time to time to
HRD of the bank is committed to achieving excellence in respond to emerging situations and challenges. It helps to
acquiring, developing and retaining talented employees determine the working relationship amongst employees,
through formulation and implementation of appropriate chain of command, work specialization, authority and
recruitment policies, compensation and employee span of control. The job descriptions of each and every
welfare package and promotion policies. The Bank has employee are laid out in details and their Key Performance
established a fully equipped training institute where many Indicators (KPIs) are determined on the basis of job
in-house training courses are offered to develop various descriptions. Their performance evaluation is done on the
banking knowledge as needed by the employees of the basis of achievements of their KPIs.
Bank. Employees are also sent for training in other training
institutes at home and abroad for development of their The Senior Management Team
skills and familiarizing them with the latest technological
developments in the banking industry. Career counseling The Bank has a Senior Management team consisting
and guidance is an area where increasing attention of Additional Managing Directors and Divisional Heads
is being given for creating required scope for career of Head Office. The team is headed by its Managing
advancement of employees. Director. The members of the team are academically and
professionally highly qualified and vastly experienced
Human Capital – Capacity Building in their respective fields. The team is supported by the
Heads of Divisions. The members of the team are devoted
Investments in skills development, accelerating to effective governance, protecting the interest of all
employees’ professional and personal development are stakeholders and promoting the long-term sustainability
essential components of the Bank’s human resource. of the bank.
The Bank considers its employees as the most valuable
assets. Southeast Bank is committed to strengthening the The senior management team is responsible for setting
capacity of its employees and holding them accountable bank’s business strategy, prioritizing the allocation
to thrive and achieve their full potential. The Bank spends of bank’s overall resources, monitoring adherence to
considerable resources in building the capacities of its bank’s core principles and views, driving higher returns
employees. Human Resources capacity building equips to stakeholders and ensuring good services to the
employees to achieve organizational goals and objectives. customers. The team is also responsible to share their
views with one other and provide suggestions from time
Bank takes a holistic approach for leadership development to time to the Managing Director in making decisions for
which encompasses corporate culture, individual developing the strategic plan, diversifying the customer
leadership capabilities and team work. The bank promotes service, increasing quality asset and upholding the image
the continuous professional and personal development of the Bank. The team monitors the performance of the
of its employees. The bank develops short, medium and Bank and makes decisions on the day to day operational
long term plans for recruitment of employees and make activities of the bank. The team is accountable to the
sure that new recruits are not only trained to do the job Managing Director and exercises their power within their
but also continue to grow and develop new skills in their delegated authority.
job. This practice has contributed to substantial growth of
productivity for organizational development. Human Resource Accounting (HRA)
In the year 2016, as part of capacity building of human Success and failure of an organization purely depends
resources, a total number of 215 officials of different grades on its human resources. HRA is the managerial technique
were sent to various training programs/ workshops/ which helps the management to identify the cost for
seminars at home and abroad. Out of total 215 officials, human resources. HRA of the bank measures the cost
111 officials were trained in Bangladesh Institute of Bank relating to recruitment, selection, compensation and
Management (BIBM), 42 officials in Bangladesh Bank training.
Training Academy (BBTA) and 62 officials in other institutes
at home and abroad.
An overview of HRA for last five years (2012 to 2016) is given below
(BDT in million)
Particulars 2012 2013 2014 2015 2016

Employee (Person) 2010 2118 2221 2376 2616
Operating cost per employee 1.13 1.27 1.49 1.51 1.60
Training cost per employee (excluding sub-staff ) 0.0015 0.00096 0.0016 0.0018 0.0027
Operating profit per employee 2.70 3.25 3.70 3.39 3.25
Salary cost as % of operating profit 18.04 18.22 16.29 17.40 20.25
Human Resource Position
The permanent officials of the Bank as on December 31, 2016 were 2089 out of which 229 were Executives (Assistant Vice
President and above) and 1860 were Officers. In addition, 527 employees worked as Sub-Staff.
Human Resources by Age Group in the Year 2016
Age Group Total Percentage (%)

Below 30 435 16.63 %
30 – 39 1256 48.01 %
40 – 49 779 29.78 %
50 and above 146 5.58 %
Total 2616 100.00%
Creation of new employment opportunity Recruitment status for last five years (2012 to 2016)
The HRD of the bank primarily focuses on HR planning, Fresh

recruiting and staffing. The bank is constantly Experienced BDT in million
strengthening its work force. To create new employment Total
opportunity, the Bank regularly recruits a good number of
young, energetic and self-motivated fresh post-graduates 207 113 177 197 284
from different disciplines of the renowned academic
institutions. As per Bank’s strategic plans, a good number
of new jobs will be created in the year 2017 for filling 35 30
35 62 67
in existing vacancies and expansion of its business by
opening a few new Branches.
In the year 2016, the Bank recruited a total number of 284 172 78 147 135 217
Employees (fresh entrants 217 and experienced bankers
67) to strengthen its team and sustain its fast development
programs. 2012 2013 2014 2015 2016
Apart from the above as part of social responsibility, in the

year 2016, 601 numbers of students of different reputed
universities of Bangladesh were given opportunity to
complete their internship program in the Bank.
Contribution to
National Economy
Banking industry is said to be the nerve and vein of a brick kiln, bio-gas, solar home system, establishment of
modern economy. It plays a pivotal role for development ETP, ensuring work environment and security for workers
of the economy of a country. In the last 5-years Bangladesh of textile and Garments Industry, green industry, fire &
witnessed a GDP growth of around 6.50 percent and safety measures e.t.c. In 2016, import business of BDT
achieved 7.01 percent in 2016. It has been largely driven 171,531.70 million and export business of BDT 146,606.10
by its exports of readymade garments, remittances and million were transacted through SEBL. Remittances help in
the domestic agriculture sector. Southeast Bank Limited macroeconomic development process of our country as it
(SEBL) has been contributing to the growth of national provides significant sources of foreign currency, increases
economy by providing different services to the economy. national income, finances imports and contributes to
SEBL has wide network of 128 branches located at improve the balance of payment situation. During 2016,
strategic places of commercial and business importance the Bank mobilized total inward remittances of BDT
all over the country. Through the countrywide network, 64,665.80 million and the same was distributed to the
it has invested BDT 247,491.40 million during the year beneficiaries through bank’s wide branch network across
2016 in different areas including garments, textiles, the country. In 2015-2016 fiscal year, SEBL deposited
pharmaceuticals, ICT, import of essential food items and BDT 1,644.59 million to the government exchequer
capital machinery, working capital finance e.t.c and thus as corporate income tax. Also BDT 302.52 million and
helped achieve the expected GDP growth of the country as BDT 290.98 million were collected and deposited to the
well as generate employment opportunity for the people government exchequer as VAT and exercise duty. The Bank
of the country. The role of Small and Medium Enterprises mobilized total deposits of BDT 229,973.43 million which
(SMEs) is indispensible for overall economic development contributed to the formation of country’s capital.
of Bangladesh. During the year 2016 SEBL invested BDT
41,727.60 million in SME sector and BDT 3,241.60 million As ever, SEBL is committed to be an active partner for
in agricultural sector of the country. SEBL is helping the contributing to the ongoing economic development of
economy by providing assistance in import and export the country and to attain the targeted GDP growth of over
business and thus facilitate economic activities of the 8.00 percent in the near future by providing all sorts of
country. The Bank also invested BDT.18,181.51 million in financial services within the limits of its capacity.
environment friendly projects i.e renewable energy, auto
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 7352.70 million as of December 31, 2016 as against BDT 7,230.60 million
in 2015.
BDT in million
2016 2015
Particulars % %
Taka Taka
Income from Banking Services:
Interest and similar income on loan portfolios 16,972.33 17,794.80
Investment income 5,079.61 5,158.54
Commission, Exchange and Brokerage 2,903.03 2,759.46
Other Operating Income 662.60 547.93
25,617.57 26,260.73
Less: Cost of Services & Supplies
Interest paid on Deposits & Borrowings 12,765.12 14,656.34
Rent, Taxes, Insurance, Lighting etc. 801.04 658.26
Legal expenses 0.60 1.49
Postage, Stamp, Telegram & Telephone 166.45 147.33
Stationery, Printing, Advertisement 132.23 112.62
Directors' Fees and Expenses 2.91 2.65
Audit Fee 1.60 1.04
Repairs to Bank's property 94.93 59.20
Other expenses 1,087.36 874.41
15,052.24 16,513.34
Value Added by the Banking Services 10,565.33 9,747.39
Add: Non-banking income - -
Less: Provision for loans and advances/investments
Specific provision on loan loss (2,360.99) (2,039.77)
Transfer to general provision (890.00) (205.28)
Provision for Off-Balance Sheet Exposures (249.50) 19.65
Provision for diminution in value of Investment 403.60 (269.48)
Provision for Other Assets (115.74) (21.91)
(3,212.62) (2,516.79)
Value Added 7,352.70 7,230.60
Distribution of Value Addition
Employees-as Salaries and Allowances 1,753.44 23.85% 1,433.13 19.82%
Transfer to SEBL Foundation 300.00 4.08% 300.00 4.15%
Provider of Capital - as dividend 1,833.90 24.94% 1375.43 19.02%
Government - as income tax 2,855.52 38.84% 2,448.07 33.86%
Expansion & Growth:
Statutory Reserve 272.69 3.71% 1104.50 15.28%
Retained Earnings 28.48 0.39% 289.49 4.00%
Depreciation 308.67 4.20% 279.98 3.87%
7,352.70 100% 7,230.60 100%
Wealth Distribution of 2016 Wealth Distribution of 2015

Percentage Percentage
4%
4% 4%
0.4% 24% 15%
To employees as salaries and
4% allowances 20%
To SEBL Foundation
4% To Shareholders as dividend
To Government as income tax
Statutory Reserve 4%
Retained Earnings
39% 25% Depreciation 34% 19%
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 1383.86 Million as of December 31, 2016 as against BDT 3,559.17 million in 2015.
Economic Value Added

BDT in million
2016 2015
Particulars
Taka Taka
Total Revenue 25,617.57 26,260.72
Less: Expenses (Interest & Operating) (17,114.35) (18,226.45)
Less: Corporate Tax (2,855.52) (2,448.07)
Less: Capital Charges (4,263.85) (2,027.03)
Economic Value Added 1,383.86 3,559.17
Capital Charges = Required Rate of Return X Total Capital & Reserves
Required Rate of Return (12.52%) = Weighted average rate of 10 years treasury bond @ 10.52% +Risk Premium @ 2% in 2016
(Weighted average rate of 10 years treasury bond @ 5.11% +Risk Premium @ 2% in 2015)
Total Capital & Reserves = BDT 34,056.28 million in 2016 (BDT 28,509.53 million in 2015)
Economic Value Added = Total Revenue - (Expenses + Corporate Tax + Capital Charges)
BDT in million
878.72 936.23 2012.92 3561.16 1383.86
2012 2013 2014 2015 2016

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 17192.82 million whereas the book value of equity stood at BDT 9169.50 million, resulting a Market
Value Added of BDT 8,023.32 million as of December 31, 2016 as against BDT 7,014.67 million in 2015.
Market Value Added

BDT in million
2016 2015
Particulars
Taka Taka
Market Value of Equity 17,192.82 16,184.17
Less: Book Value of Equity (Share Capital) (9,169.50) (9,169.50)
Market Value Added 8,023.32 7,014.67
Total Number of Shares outstanding 916,950,176 916,950,176
Market Value per Share 18.75 17.65
Market Value of Total Equity = [Total Number of shares outstanding X Market value per share as on 31.12.16]
Market Value Added = [Market Value of Total Equity] - [Book Value of Equity]
Market Value Addition

BDT in million
8,732.86 6,898.96 8,665.18 7,014.67 8,023.32
2012 2013 2014 2015 2016

Communication
to Shareholders
& Stakeholders
Financial Highlights
BDT in million
Group Bank
Particulars Change Change

2016 2015 2016 2015
% %
Performance During the Year

Net Interest Income 4,207.21 3,138.46 34.05% 4,203.21 3,265.57 28.71%
Non Interest Income 8,645.24 8,465.93 2.12% 8,492.73 8,367.74 1.49%
Operating Income 12,852.45 11,604.39 10.76% 12,695.94 11,633.32 9.13%
Operating Profit 8,503.22 8,034.27 5.84% 8,497.82 8,043.94 5.64%
Profit After Tax 2,435.07 3,069.42 -20.67% 2,416.37 3,082.48 -21.61%
Year End Financial Position

Loans 191,865.59 168,878.46 13.61% 189,364.96 169,378.86 11.80%
Investments 61,731.63 58,829.27 4.93% 59,455.01 56,888.41 4.51%
Deposits 229,973.43 210,431.09 9.29% 230,533.70 210,435.77 9.55%
Shareholders Equity 26,523.56 27,206.66 -2.51% 26,522.86 27,224.92 -2.58%
Total Assets 291,798.01 260,718.03 11.92% 291,993.00 260,253.04 12.20%
Earning per share(BDT) 2.66 3.35 -20.73% 2.64 3.36 -21.61%

Dividend (%) 20% 15% 33.33% 20% 15% 33.33%
Price earning ratio(times) 7.06 5.27 34.02% 7.12 5.25 35.52%
Net asset value per share (BDT) 28.93 29.67 -2.51% 28.93 29.69 -2.58%
Market price per share(BDT) 18.75 17.65 6.23% 18.75 17.65 6.23%
Ratios (%)
Capital adequacy ratio (as per Basel III) 12.15% 11.52% 5.44% 12.18% 11.60% 4.99%
Non performing loans 4.89% 4.25% 15.11% 4.89% 4.25% 15.11%
Cost to income ratio 33.84% 30.77% 9.99% 33.07% 30.85% 7.17%
Key Financial Data, Ratios and

Graphical Presentation
BDT in million
Particulars 2016 2015 2014 2013 2012
BALANCE SHEET MATRIX
Authorized Capital 15,000.00 15,000.00 15,000.00 10,000.00 10,000.00
Paid up Capital 9,169.50 9,169.50 9,169.50 8,732.86 8,732.86
Reserve Fund & Surplus 24,886.78 19,340.03 18,292.59 13,074.71 10,864.68
Total Shareholders’ Equity 26,523.56 27,206.66 24,543.21 21,929.15 19,784.12
Deposits 229,973.43 210,431.09 189,472.54 177,519.46 152,901.24
Loans and Advances 191,865.59 168,878.46 147,070.81 134,863.82 126,968.97
Investments 61,731.63 58,829.27 56,378.59 57,589.06 39,011.28
Fixed Assets 8,947.16 7,885.23 7,913.00 7,795.65 7,677.51
Total Assets 291,798.01 260,718.03 236,608.40 220,930.85 191,276.30
Total Off Balance Sheet Items 113,910.63 88,522.24 92,184.70 82,126.39 71,863.58
Interest Earning Assets 254,120.97 225,546.44 203,449.40 192,452.88 165,980.25
Non-Interest Earning Assets 37,677.04 35,171.59 33,159.00 28,477.97 25,296.05
INCOME STATEMENT MATRIX
Interest Income 16,972.33 17,794.80 19,233.89 19,200.64 17,394.05
Interest Expenses 12,765.12 14,656.34 16,049.91 17,233.51 15,302.55
Investment Income 5,079.61 5,158.54 5,274.27 4,782.65 3,258.44
Non-Interest Income 3,565.64 3,307.39 3,158.93 2,935.02 2,481.68
Non-Interest Expenses 4,349.23 3,570.11 3,327.43 2,984.60 2,336.44
Total Income 25,617.57 26,260.72 27,667.09 26,918.31 23,134.17
Total Expenditure 17,114.35 18,226.45 19,377.34 20,218.11 17,638.99
Operating Profit 8,503.22 8,034.27 8,289.75 6,700.20 5,495.18
Profit before Tax 5,290.60 5,517.48 6,760.66 6,078.82 3,603.84
Net Profit after Tax 2,435.07 3,069.42 3,836.94 3,378.82 1,648.72
CAPITAL MATRIX
Risk Weighted Assets 280,402.29 247,250.88 221,249.27 200,098.46 180,327.66
Tier-I Capital 21,685.52 21,211.19 19,882.29 17,608.48 15,560.00
Tier-II Capital 12,370.76 7,298.35 7,579.80 4,199.09 4,037.54
Total Capital 34,056.28 28,509.53 27,462.09 21,807.57 19,597.54
Capital Surplus/(Deficit) 4,263.54 3,784.44 5,337.16 1,797.72 18,032.77
Tier I Capital ratio 7.73% 8.57% 8.99% 8.80% 8.63%
Tier II Capital ratio 4.41% 2.95% 3.43% 2.10% 2.24%
Total Capital to Risk Weighted Assets Ratio 12.15% 11.52% 12.41% 10.90% 10.87%
CREDIT QUALITY
Classified Loans 9,257.79 7,193.82 5,387.74 5,350.24 5,687.92
Provision for Unclassified Loans 2,430.00 1,540.00 1,334.72 1,220.28 1,210.28
Provision for Classified Loans 3,728.28 2,323.29 2,673.49 2,656.72 2,326.31
Provision for Contingent Liabilities 1,139.50 890.00 909.65 813.04 711.31
Percentage of NPLs to total Loans and
4.89% 4.25% 3.64% 3.94% 4.47%
Advances
BDT in million
Particulars 2016 2015 2014 2013 2012
FOREIGN EXCHANGE BUSINESS
Import 171,531.73 151,812.58 155,691.00 131,644.82 111,537.50
Export 146,606.09 126,423.89 112,137.60 95,220.40 84,464.20
Remittance (Inward) 64,665.84 60,708.50 48,740.50 39,299.10 41,455.40
OPERATING PROFIT RATIOS
Credit Deposit Ratio 83.43% 80.25% 78.09% 76.44% 83.21%
Cost of Deposit & Borrowing 5.51% 7.12% 8.32% 10.01% 10.20%
Administrative Cost 1.88% 1.69% 1.69% 1.72% 1.66%
Yield on Loans and Advances 9.41% 11.30% 13.52% 14.96% 15.13%
Spread 3.90% 4.18% 5.20% 4.95% 4.84%
Return on Assets 0.88% 1.23% 1.67% 1.64% 0.95%
Return on Equity 9.06% 11.86% 16.51% 16.20% 8.42%
Debt Equity Ratio 10.00 8.58 8.64 9.07 8.6
PERFORMANCE RATIOS
Net Profit per Employee 0.92 1.30 1.72 1.58 0.83
Net Profit per Branch 19.02 25.16 33.96 32.80 17.54
Operating profit as % of Working Fund 2.91% 3.08% 3.50% 3.03% 2.89%
Net Interest income as % of Working Fund 1.44% 1.20% 1.35% 0.89% 1.10%
Efficiency Ratio 33.84% 30.77% 28.64% 30.82% 29.83%
Ratio of Fees Income 22.59% 23.78% 22.96% 25.20% 26.22%
Salary Exp. to total Operating Exp. 40.32% 39.88% 40.92% 42.55% 42.51%
Salary Exp. to Fees Income 60.40% 51.59% 51.05% 52.03% 48.37%
Cost to Income Ratio 33.84% 30.77% 28.64% 30.82% 29.83%
DIVIDEND ISSUE & RIGHT ISSUE
Cash 20% 15% 15% 16% 15%
Stock - - - 5% -
Right Issue 1R:2 - - - -
SHARES INFORMATION MATRIX
No. of Shares Outstanding 9,169.50 9,169.50 9,169.50 9,169.50 8,732.86
Earnings Per Share (Actual Figure) 2.66 3.35 4.18 3.68 1.89
Number of Shareholders (Actual Figure) 39,009 46,285 58,169 65,413 64,060
Market Value Per Share-DSE (Actual Figure) 18.70 17.60 19.40 17.90 20.00
Price Earnings Ratio 7.06 5.27 4.67 4.91 10.52
Net Assets Value Per Share 28.93 29.67 26.77 23.92 22.66
Dividend Cover Ratio 0.75 0.45 0.36 0.54 0.79
OTHER INFORMATION
Number of Branches 128 122 113 103 94
Number of Islamic Windows 5 5 5 5 5
Number of Employees 2616 2376 2221 2118 2010
Number of Foreign Correspondents 807 811 790 778 691
Horizontal and Vertical

Analysis
Horizontal Analysis
Balance Sheet
BDT in million
2016 2015 2014 2013 2012
Particulars 2016 2015 2014 2013 2012
(%) (%) (%) (%) (%)
PROPERTY AND ASSETS
Cash
In hand (including foreign
173% 2,432.62 136% 1,903.29 114% 1,598.09 129% 1,802.67 100% 1,402.35
currencies)
Balance with Bangladesh
Bank (including foreign 163% 15,402.83 149% 14,093.70 147% 13,859.38 116% 10,955.39 100% 9,432.42
currencies)
Balance with other banks
- - - - -
and financial institutions
In Bangladesh 114% 2,860.09 87% 2,187.97 170% 4,283.51 107% 2,706.54 100% 2,517.87
Outside Bangladesh 153% 1,185.13 155% 1,203.35 191% 1,482.74 90% 695.51 100% 774.44
Money at call and on short
441% 4,271.34 95% 923.45 57% 548.3 104% 1,008.90 100% 969.1
notice
Investments - - - - -
Government 159% 54,299.80 154% 52,620.79 147% 50,185.30 149% 50,860.91 100% 34,077.31
Others 151% 7,431.83 126% 6,208.48 126% 6,193.29 136% 6,728.16 100% 4,933.97
Loans, cash credit, overdrafts
151% 182,661.82 133% 161,556.32 117% 141,778.21 107% 129,184.62 100% 121,239.44
etc./investments
Bills purchased and
161% 9,203.77 128% 7,322.14 92% 5,292.59 99% 5,679.20 100% 5,729.53
discounted
Fixed assets including
premises, furniture and 117% 8,947.16 103% 7,885.23 103% 7,913.00 102% 7,795.65 100% 7,677.51
fixtures
Other assets 123% 3,101.61 191% 4,813.31 138% 3,473.97 139% 3,513.30 100% 2,522.35
Total assets 153% 291,798.01 136% 260,718.03 124% 236,608.40 116% 220,930.85 100% 191,276.30
Liabilities - - - - -
Borrowings from other banks,
financial institutions and 108% 7,371.64 66% 4,556.92 70% 4,815.92 116% 7,921.43 100% 6,853.95
agents
Subordinated bond 8,000.00 3,000.00 3,000.00 - -
Deposits and other
- - - - -
accounts
Current/Al-wadeeah current
248% 30,285.06 190% 23,179.89 155% 18,935.05 116% 14,212.91 100% 12,201.09
accounts and other accounts
Bills payable 373% 6,548.86 121% 2,127.21 154% 2,701.46 109% 1,914.53 100% 1,755.50
Savings bank/Mudaraba
231% 19,700.58 216% 18,419.86 159% 13,531.82 166% 14,118.81 100% 8,515.19
savings bank deposits
Fixed deposits/Mudaraba
133% 173,438.93 128% 166,704.14 118% 154,304.20 113% 147,273.21 100% 130,429.45
fixed deposits
Other liabilities 170% 19,919.38 132% 15,513.93 126% 14,766.54 116% 13,550.33 100% 11,729.24
Total liabilities - - - - -
BDT in million
2016 2015 2014 2013 2012
Particulars 2016 2015 2014 2013 2012
(%) (%) (%) (%) (%)
Capital/shareholders' equity - - - - -
Paid up capital 105% 9,169.50 105% 9,169.50 105% 9,169.50 100% 8,732.86 100% 8,732.86
Statutory reserve 175% 9,170.00 170% 8,897.31 149% 7,792.81 123% 6,444.82 100% 5,236.10
Revaluation reserve 113% 4,763.89 141% 5,968.13 110% 4,670.87 102% 4,331.54 100% 4,231.90
Other reserve 100% 247.65 100% 247.65 100% 247.65 100% 247.65 100% 247.65
Foreign currency translation
102144% (24.45) 116439% (27.87) (1015%) 0.24 1651% (0.40) 100% (0.02)
reserve
Retained earnings 239% 3,196.97 221% 2,951.94 199% 2,662.14 163% 2,172.67 100% 1,335.63
Total shareholders' equity 134% 26,523.56 138% 27,206.66 124% 24,543.21 111% 21,929.15 100% 19,784.12
Non-controlling interest 129% 10.00 121% 9.43 131% 10.18 135% 10.48 100% 7.76
Total liabilities and
153% 291,798.01 136% 260,718.03 124% 236,608.40 116% 220,930.85 100% 191,276.30
shareholders' equity
Acceptances and
172% 43,813.55 143% 36,223.42 121% 30,725.22 129% 32,847.49 100% 25,416.70
endorsements
Letters of guarantee 107% 15,154.12 94% 13,395.24 100% 14,253.37 114% 16,230.48 100% 14,188.45
Irrevocable letters of credit 174% 32,881.30 132% 24,992.38 165% 31,246.71 105% 19,925.64 100% 18,908.74
Bills for collection 141% 17,830.30 102% 12,812.74 117% 14,739.31 97% 12,300.43 100% 12,616.80
Other contingent liabilities 201% 1,474.68 150% 1,098.46 166% 1,220.08 112% 822.34 100% 732.88
Other Commitments 2,756.66 - - - - - - -
Total off-balance sheet
items including contingent 159% 113,910.63 123% 88,522.24 128% 92,184.70 114% 82,126.39 100% 71,863.58
liabilities
Horizontal Analysis
Profit and Loss Account BDT in million
2016 2015 2014 2013 2012
Particulars 2016 2015 2014 2013 2012
(%) (%) (%) (%) (%)
Operating Income
Interest income/profit on
98% 16972.33 102% 17794.8 111% 19233.9 110% 19200.64 100% 17394.05
investments
Interest paid/profit shared on
83% 12765.12 96% 14656.34 105% 16049.91 113% 17233.51 100% 15302.55
deposits and borrowings etc.
201% 4207.21 150% 3138.46 152% 3183.99 94% 1967.13 100% 2091.5
investments
Investment income 156% 5079.61 158% 5158.54 162% 5274.27 147% 4782.65 100% 3258.44
Commission, exchange and
141% 2903.03 134% 2759.46 130% 2666.73 119% 2440.37 100% 2053.68
brokerage
Other operating income 155% 662.6 128% 547.93 115% 492.2 116% 494.65 100% 428.01
Total operating income (A) 164% 12852.45 148% 11604.39 148% 11617.19 124% 9684.8 100% 7831.62
Salaries and allowances 175% 1741.46 143% 1423.68 137% 1361.48 128% 1269.82 100% 993.27
Rent, taxes, insurance, electricity etc. 206% 801.04 169% 658.26 146% 569.34 126% 491.84 100% 389.06
Legal expenses 90% 0.60 224% 1.49 92% 0.62 135% 0.90 100% 0.67
Postage, stamp, telecommunication
162% 166.45 143% 147.33 141% 145.63 126% 129.59 100% 103.06
etc.
Stationery, printing, advertisements
123% 132.23 105% 112.62 106% 113.72 105% 112.64 100% 107.52
etc.
Managing Director's salary and fees 106% 11.97 83% 9.45 83% 9.45 83% 9.45 100% 11.35
Directors' fees and expenses 108% 2.91 98% 2.65 127% 3.43 68% 1.84 100% 2.7
Auditors' fees 221% 1.60 143% 1.04 184% 1.34 114% 0.83 100% 0.73
Depreciation and repair of bank's
159% 403.6 133% 339.18 140% 356.79 120% 305.33 100% 254.64
assets
Other expenses 230% 1087.36 185% 874.41 162% 765.65 140% 662.36 100% 473.44
Total operating expenses (B) 186% 4349.23 153% 3570.11 142% 3327.43 128% 2984.6 100% 2336.44
Profit before provision (C=A-B) 155% 8503.22 146% 8034.27 151% 8289.76 122% 6700.2 100% 5495.19
General provision 2433% 890 561% 205.28 313% 114.45 27% 10 100% 36.58
Specific provision 182% 2360.99 157% 2039.77 75% 974.01 41% 537.81 100% 1299
Provision for off-balance sheet items 159% 249.5 (13)% (19.65) 62% 96.61 65% 101.73 100% 157.03
Provision for diminution in value of
(104)% (403.6) 70% 269.48 85% 329.03 (11)% (41.3) 100% 386.94
investments
Other provisions 981% 115.74 186% 21.91 127% 15 111% 13.14 100% 11.8
Total provision (D) 170% 3212.62 133% 2516.79 81% 1529.1 33% 621.37 100% 1891.35
Total profit before taxation (C-D) 147% 5290.6 153% 5517.48 188% 6760.66 169% 6078.82 100% 3603.84
Provision for taxation 146% 2855.52 125% 2448.07 150% 2923.72 138% 2700 100% 1955.12
Net profit after taxation 148% 2435.07 186% 3069.42 233% 3836.94 205% 3378.82 100% 1648.7
Retained surplus during the year 232% 2162.38 211% 1964.92 267% 2488.95 233% 2170.1 100% 931.9
Earnings per share (Tk.) 141% 2.66 177% 3.35 221% 4.18 195% 3.68 100% 1.89
Vertical Analysis
Balance Sheet BDT in million
2016 2015 2014 2013 2012

Particulars 2016 2015 2014 2013 2012
(%) (%) (%) (%) (%)
PROPERTY AND ASSETS
Cash In hand (including foreign
1% 2,432.62 1% 1,903.29 1% 1,598.09 1% 1,802.67 1% 1,402.35
currencies)
Balance with Bangladesh Bank and
its agent banks(including foreign 5% 15,402.83 5% 14,093.70 6% 13,859.38 5% 10,955.39 5% 9,432.42
currencies)
Balance with other banks and
- - 0% - 0% - 0% - - -
financial institutions
In Bangladesh 1% 2,860.09 1% 2,187.97 2% 4,283.51 1% 2,706.54 1% 2,517.87
Outside Bangladesh 0% 1,185.13 0% 1,203.35 1% 1,482.74 0% 695.51 0% 774.44
Money at call and on short notice 1% 4,271.34 0% 923.45 0% 548.3 0% 1,008.90 1% 969.1
Investments - - 0% - 0% - 0% - - -
Government 19% 54,299.80 20% 52,620.79 21% 50,185.30 23% 50,860.91 18% 34,077.31
Others 3% 7,431.83 2% 6,208.48 3% 6,193.29 3% 6,728.16 3% 4,933.97
Loans and advances/investments - - 0% - 0% - 0% - - -
Loans, cash credit, overdrafts etc./
63% 182,661.82 62% 161,556.32 60% 141,778.21 58% 129,184.62 63% 121,239.44
investments
Bills purchased and discounted 3% 9,203.77 3% 7,322.14 2% 5,292.59 3% 5,679.20 3% 5,729.53
Fixed assets including premises,
3% 8,947.16 3% 7,885.23 3% 7,913.00 4% 7,795.65 4% 7,677.51
furniture and fixtures
Other assets 1% 3,101.61 2% 4,813.31 1% 3,473.97 2% 3,513.30 1% 2,522.35
Non - banking assets - - - - - - -
Total assets 100% 291,798.01 100% 260,718.03 100% 236,608.40 100% 220,930.85 100% 191,276.30
LIABILITIES AND CAPITAL - - - - -
Liabilities - - - - -
Borrowings from other banks,
3% 7,371.64 2% 4,556.92 2% 4,815.92 4% 7,921.43 4% 6,853.95
financial institutions and agents
Subordinated bond 3% 8,000.00 1% 3,000.00 1% 3,000.00 0% - 0% -
Deposits and other accounts 0% - 0% - 0% - 0% - 0% -
Current/Al-wadeeah current
10% 30,285.06 9% 23,179.89 8% 18,935.05 6% 14,212.91 6% 12,201.09
accounts and other accounts
Bills payable 2% 6,548.86 1% 2,127.21 1% 2,701.46 1% 1,914.53 1% 1,755.50
Savings bank/Mudaraba savings
7% 19,700.58 7% 18,419.86 6% 13,531.82 6% 14,118.81 4% 8,515.19
bank deposits
Fixed deposits/Mudaraba fixed
59% 173,438.93 64% 166,704.14 65% 154,304.20 67% 147,273.21 68% 130,429.45
deposits
Bearer certificates of deposit 0% - 0% - 0% - 0% - 0% -
Other deposits 0% - 0% - 0% - 0% - 0% -
Other liabilities 7% 19,919.38 6% 15,513.93 6% 14,766.54 6% 13,550.33 6% 11,729.24
Capital/shareholders' equity 0% - 0% - 0% - 0% - 0% -
Paid up capital 3% 9,169.50 4% 9,169.50 4% 9,169.50 4% 8,732.86 5% 8,732.86
Statutory reserve 3% 9,170.00 3% 8,897.31 3% 7,792.81 3% 6,444.82 3% 5,236.10
Revaluation reserve 2% 4,763.89 2% 5,968.13 2% 4,670.87 2% 4,331.54 2% 4,231.90
Other reserve 0% 247.65 0% 247.65 0% 247.65 0% 247.65 0% 247.65
Foreign currency translation
0% -24.45 0% -27.87 0% 0.24 0% -0.4 0% -0.02
reserve
Retained earnings 1% 3,196.97 1% 2,951.94 1% 2,662.14 1% 2,172.67 1% 1,335.63
Total shareholders' equity 26,523.56 27,206.66 24,543.21 21,929.15 0% 19,784.12
Non-controlling interest 0% 10 0% 9.43 0% 10.18 0% 10.48 0% 7.76
Total liabilities and
100% 291,798.01 100% 260,718.03 100% 236,608.40 100% 220,930.85 100% 191,276.30
shareholders' equity
OFF-BALANCE SHEET ITEMS - - - - - - - - - -
Acceptances and endorsements 38% 43,813.55 41% 36,223.42 33% 30,725.22 40% 32,847.49 35% 25,416.70
Letters of guarantee 13% 15,154.12 15% 13,395.24 15% 14,253.37 20% 16,230.48 20% 14,188.45
Irrevocable letters of credit 29% 32,881.30 28% 24,992.38 34% 31,246.71 24% 19,925.64 26% 18,908.74
Bills for collection 16% 17,830.30 14% 12,812.74 16% 14,739.31 15% 12,300.43 18% 12,616.80
Other contingent liabilities 1% 1,474.68 1% 1,098.46 1% 1,220.08 1% 822.34 1% 732.88
Other commitments 2% 2,756.66 - - - -
Total off-balance sheet items
100% 113,910.63 100% 88,522.24 100% 92,184.70 100% 82,126.39 100% 71,863.58
including contingent liabilities
Vertical Analysis
Profit and Loss Account BDT in million
2016 2015 2014 2013 2012

Particulars 2016 2015 2014 2013 2012
(%) (%) (%) (%) (%)
Operating Income
Interest income/profit on
66% 16,972.33 68% 17,794.80 70% 19,233.90 71% 19,200.64 75% 17,394.05
investments
Interest paid/profit shared on
50% 12,765.12 56% 14,656.34 58% 16,049.91 64% 17,233.51 66% 15,302.55
16% 4,207.21 12% 3,138.46 12% 3,183.99 7% 1,967.13 9% 2,091.50
investments
Investment income 20% 5,079.61 20% 5,158.54 19% 5,274.27 18% 4,782.65 14% 3,258.44
Commission, exchange and
11% 2,903.03 11% 2,759.46 10% 2,666.73 9% 2,440.37 9% 2,053.68
brokerage
Other operating income 3% 662.60 2% 547.93 2% 492.20 2% 494.65 2% 428.01
Total operating income (A) 50% 12,852.45 44% 11,604.39 42% 11,617.19 36% 9,684.80 34% 7,831.62
Salaries and allowances 7% 1,741.46 5% 1,423.68 5% 1,361.48 5% 1,269.82 4% 993.27
Rent, taxes, insurance, electricity etc. 3% 801.04 3% 658.26 2% 569.34 2% 491.84 2% 389.06
Legal expenses 0% 0.60 0% 1.49 0% 0.62 0% 0.90 0% 0.67
Postage, stamp, telecommunication
1% 166.45 1% 147.33 1% 145.63 0% 129.59 0% 103.06
etc.
Stationery, printing, advertisements
1% 132.23 0% 112.62 0% 113.72 0% 112.64 0% 107.52
etc.
Managing Director's salary and fees 0% 11.97 0% 9.45 0% 9.45 0% 9.45 0% 11.35
Directors' fees and expenses 0% 2.91 0% 2.65 0% 3.43 0% 1.84 0% 2.70
Auditors' fees 0% 1.60 0% 1.04 0% 1.34 0% 0.83 0% 0.73
Depreciation and repair of bank's
2% 403.60 1% 339.18 1% 356.79 1% 305.33 1% 254.64
assets
Other expenses 4% 1,087.36 3% 874.41 3% 765.65 2% 662.36 2% 473.44
Total operating expenses (B) 17% 4,349.23 14% 3,570.11 12% 3,327.43 11% 2,984.60 10% 2,336.44
Profit before provision (C=A-B) 33% 8,503.22 31% 8,034.27 30% 8,289.76 25% 6,700.20 24% 5,495.19
General provision 3% 890.00 1% 205.28 0% 114.45 0% 10.00 0% 36.58
Specific provision 9% 2,360.99 8% 2,039.77 4% 974.01 2% 537.81 6% 1,299.00
Provision for off-balance sheet items 1% 249.50 0% (19.65) 0% 96.61 0% 101.73 1% 157.03
Provision for diminution in value of
-2% (403.60) 1% 269.48 1% 329.03 0% (41.30) 2% 386.94
investments
Other provisions 0% 115.74 0% 21.91 0% 15.00 0% 13.14 0% 11.80
Total provision (D) 13% 3,212.62 10% 2,516.79 6% 1,529.10 2% 621.37 8% 1,891.35
Total profit before taxation (C-D) 21% 5,290.60 21% 5,517.48 24% 6,760.66 23% 6,078.82 16% 3,603.84
Provision for taxation 11% 2,855.52 9% 2,448.07 11% 2,923.72 10% 2,700.00 8% 1,955.12
Net profit after taxation 10% 2,435.07 12% 3,069.42 14% 3,836.94 13% 3,378.82 7% 1,648.72
Segment Information
Sector wise Investment Operating Revenue
7%
7%
21%
21%
1%
1%
1%
8%
23% 92%
1%
1% 5% 11%
Agriculture Finance to NBFIs Conventational banking

Industry Real Estate Islamic Banking
Working capital financing Transport & communication Off-shore Banking
Export credit Small Enterprise financing
Commercial credit Miscellaneous
Small and cottage industries
Revenue Sources Expenditure Mix

20% 19%
11% 14%
3% 12%
66% 55%
Interest Income Interest paid

Investment Income Operating Expenses
Commission, exchange and brokerage Provision
Other Operating Income Tax
Division wise Loans Area wise Loans

20%
2% 7%
1%
1%
0%
0%
73% 93%
Dhaka Rajshahi Khulna Barisal Rural Area

Chittagong Sylhet Rangpur Mymensingh Urban Area
Graphical
Presentation
Market price per share Price earning ratio

20.00 17.90 19.40 17.60 18.75 10.52 4.91 4.67 5.27 7.06
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Earning per share Total assets
BDT in million
1.89 3.68 4.18 3.35 2.66 191,276 220,931 236,608 260,718 291,798
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Loans and advances Deposits

BDT in million BDT in million
126,969 134,864 147,071 168,878 191,866 152,901 177,519 189,473 210,431 229,973
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Import business Operating income

111,538 131,645 155,691 151,813 171,532 7,832 9,685 11,617 11,604 12,852
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Operating profit Profit before tax

5,495 6,700 8,290 8,034 8,503 3,604 6,079 6,761 5,517 5,291
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Dividend Shareholders’ equity

BDT in million
15% 21% 15% 15% 20% 19,784 21,929 24,543 27,207 26,524
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Return on equity Return on average assets

8.42% 16.20% 16.51% 11.86% 9.06% 0.95% 1.64% 1.67% 1.23% 0.88%
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Non performing loans Investment

BDT in million
4.47% 3.94% 3.64% 4.25% 4.89% 39,011 57,589 56,379 58,829 61,732
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Export business Operating expense

84,464 95,220 112,138 126,424 146,606 2,336 2,985 3,327 3,570 4,349
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Total provision Profit after tax

1,891 621 1,529 2,517 3,213 1,649 3,379 3,837 3,069 2,435
2012 2013 2014 2015 2016 2012 2013 2014 2015 2016
Distribution of Shareholders in 2016

Name of the Category Number of Shares Percentage
Sponsors 296,760,231 32.36
Financial Institutions & Investor A/C Holders 336,576,964 36.71
General Public 283,612,981 30.93
TOTAL 916,950,176 100.00
Distribution of Shareholders
Percentage
32.36
30.93 Sponsors
Financial Institutions & Investor A/C Holders
General Public
36.71
Shares held by the Directors in 2016
Sl.
Name of the Directors Designation Shares Percentage
No.
1 Alamgir Kabir, FCA Chairman 19,944,672 2.18
Ragib Ali
2 Vice Chairman 28,026,291 3.06
(ceased to be Director on and from March 8, 2017)
3 M.A. Kashem Director 20,307,060 2.21
4 Azim Uddin Ahmed Director 25,490,735 2.78
5 Duluma Ahmed Director 19,082,742 2.08
6 Jusna Ara Kashem Director 18,339,525 2.00
7 Md. Akikur Rahman Director 18,443,731 2.01
8 Rehana Rahman Director 18,844,145 2.06
9 Sirat Monira Director 120,547 0.01
Abdul Hye (Representing Karnafuli Tea Co. Limited)
10 Director 162,420 0.02
(Ceased to be Director on and from March 8, 2017)
11 A.H.M. Moazzem Hossain Director - -
12 Dr. Quazi Mesbahuddin Ahmed Director - -
Managing
13 M. Kamal Hossain Director - -
(Current Charge)
Total Shares - 140,573,157 18.41
Market Price Information

DSE CSE Total
Month Month Month Total Total Volume on
Month High Month Low DSE & CSE
High Low Volume Volume
Jan-16 17.80 16.80 13,369,892 17.80 17.00 473,210 13,843,102
Feb-16 17.70 16.90 7,638,876 17.60 16.70 658,591 8,297,467
Mar-16 17.60 14.50 12,083,761 17.70 14.40 1,212,997 13,296,758
Apr-16 15.10 13.70 6,483,648 15.00 13.50 533,730 7,017,378
May-16 15.00 13.50 6,181,544 15.70 13.40 299,983 6,481,527
Jun-16 15.90 14.50 7,190,504 15.80 14.70 336,907 7,527,411
Jul-16 16.50 15.80 5,734,704 16.50 15.70 241,660 5,976,364
Aug-16 16.50 15.60 6,993,428 16.50 15.00 300,154 7,293,582
Sep-16 16.70 14.80 5,375,753 16.70 15.80 324,157 5,699,910
Oct-16 17.50 16.30 11,689,124 18.00 16.20 476,993 12,166,117
Nov-16 18.10 16.80 10,307,877 18.20 16.70 1,212,253 11,520,130
Dec-16 18.80 16.90 16,124,892 18.90 17.30 899,260 17,024,152
Month-wise High Low Share Price in Dhaka Stock Exchange Limited (DSE)
20
18
16
14
12
10
High
8
6 Low
0
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Ju
Ap
Oc
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No
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Month-wise High Low Share Price in Chittagong Stock Exchange Limited (CSE)
20
18
16
14
12
10
High
8
6 Low
0
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Ju
Ap
Oc
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Financial Calendar
Financial Calendar 2016
Business policy and Planning Conference held and Annual Budget discussed
Chittagong Division January 22, 2016
Sylhet Division January 28, 2016
Dhaka & Barisal Division February 06, 2016
Khulna, Rajshahi & Rangpur Division February 12, 2016
Audited Consolidated Financial Statements for the year 2015 finalized and signed March 02, 2016
Publication of Financial Statements for the year 2015 in two news papers March 24, 2016
21st Annual General Meeting held April 11, 2016
Final Dividend for 2015 for payment May 02, 2016
Interim Financial Statements

For the 1st quarter ended March 31, 2016 (unaudited) published in two widely
May 15, 2016
circulated news papers
For the 2nd quarter ended June 30, 2016 (unaudited) published in two widely
July 30, 2016
circulated news papers
For the 3rd quarter ended September 30, 2016 (unaudited) published in two
October 31, 2016
widely circulated news papers
Financial Calendar 2017
Audited Financial Statements for the year 2016 will be finalized and signed April 08, 2017
22nd Annual General Meeting will be held May 15, 2017
Final Dividend for the year 2016 proposed to be paid June 06, 2017
Interim Financial Statements( Proposed)

For the 1st quarter ended March 31, 2017 (unaudited) approved by the Board of
April 25, 2017
Directors
For the 2nd quarter ended June 30, 2017 (unaudited) approved by the Board of
July 25, 2017
Directors
For the 3rd quarter ended September 30, 2017 (unaudited) approved by the Board
October 25, 2017
of Directors
Stakeholders’ Engagement Process

Our Relationship-Activity with Stakeholders:
The following table discusses various aspects of stakeholders, their engagement process and our responses:
Our Frequency of Methodologies used for

Mode of Engagement Their Priorities
Stakeholders Engagement Feedback
Customer Feedback Survey Monthly Innovative products Customer Feedback Survey
Branches/ATM/Retail Banking Frequently and services
and Card Agent As and when Service Quality
Information Brochure required Competitive Pricing
Newspaper and Electronic As and when Flexibility in offerings
Customers Media advertisements required No undisclosed Cost
Corporate website Continuous Ethical banking
Call Centre Frequently Extra ordinary service
Customer education and Any time
awareness
Complaint Box
Annual Report Annually Results of operation Concerns of existing and
Annual General Meeting Annually Business ethics prospective shareholders
Extra-Ordinary General As and when Sustainable Growth are addressed
Meetings required Assets Quality Periodical dialogue
Shareholders Corporate Disclosures As and when Financial Risk Management
Price Sensitive Information required Process.
Interim Financial Statements As and when Risk Management Culture
required Timely debt/ investment
Quarterly recovery
Managers’ Conference, Annually, Half-Yearly Staff Welfare Salary packages revised
Workshops, Seminars. & as when felt Measures and adjusted considering
Cross Functioning Training necessary Remuneration linked industry scenario.
Program As and when with performance Comprehensive Training
Internet Portal required Whistle blowing and other development
Website Continuous mechanism program.
Employees
Awareness about news/ Continuous Training and Health and safety standards
developments in the business Daily workshop program. are maintained including,
sector Health Centre and Gym in
Team building through Corporate Office.
development of cross-cutting
working groups
On-site surveillance by the As and when felt Proper compliance Ensuring strict compliance
Bangladesh Bank necessary with laws and with all regulatory matters
Off-site supervision As and when required Regulations. Focus on Compliance
Regulators Directives and Circulars As and when required Timely payment of Culture in the Bank
Filing of Returns and Within deadlines all regulatory dues.
Statements As and when required Timely reporting
Meetings
Adherence to proper As Required Transparency Rigorous observance of
procurement regulations while Timely payment of Bank’s procurement policy
maintaining a good business their bills.
Business
relationship with the service
Associates
providers.
Regular interaction on issues
for mutual benefit
Invest in Environment Friendly Continuous Financial Inclusion Charitable ventures
Projects Annually Micro/SME Contribution to education,
Awards to entrepreneurs for Continuous/ Financing health, disaster mgt. &
outstanding performance in Annually Green Banking environmental sector
sustainable development and As and when Sustainable Financial Inclusion through
protection of environment. required operations Mobile Banking and
Environment Green School/ Student As and when Transparency I-Banking Operations
and Society Scholarship Program required Return to the society
Donation to Govt. Fund/ As and when felt
Individual on regular basis to necessary
promote citizens’ welfare
Sponsoring efforts for
protection of environment
Other CSR Activities
Redressal of Investors
Complaints
Southeast Bank ensures equal treatment to all Way of Redress of Investors’ Complaints
shareholders. The Bank does not discriminate between
An investor can complain through email info@
minority and majority shareholders. To ensure equal
southeastbank.com.bd
treatment of all shareholders, the bank created various
An investor can make a written complaint through
mechanisms, such as:
letter.
i) Shareholders who are unable to attend the
The company maintains investor grievance file in
shareholders’ meeting are provided with proxy forms
which full details of every written compliant are kept.
to nominate proxy to attend and vote on their behalf.
The proxy forms which are in accordance with the We have 3 designated persons who look after the
standard format, are sent along with the annual investor grievances within a timeframe.
report.
The full details of the written complaint are passed
ii) The shareholders’ meetings proceed in accordance on to the concerned department. The compliance
with the order of agenda, without adding new officer of the Company must be apprised of it as soon
and uninformed agenda, to give shareholders as it is received.
the opportunity to study the information on the
A letter or email is sent to the investor who has
given agenda before the poll. Moreover, important
submitted written complaint by the designated
information for the shareholders’ meetings are
person or compliance officer acknowledging receipt
not changed abruptly to the disadvantage of the
of the complaint and informing him/her of the
shareholders.
process for suitable decision.
iii) The bank sees the importance of the consideration
If necessary, the points of complaints are thoroughly
of transactions which may have conflict of interest
enquired into.
or may be connected or related transactions, and
abides by good corporate governance principles, Availability of information about Southeast Bank
including the rules and regulations of the Bangladesh Limited
Securities and Exchange Commission and the Dhaka
Annual Report of each year and other relevant information
Stock Exchange and Chittagong Stock Exchange
about SEBL may be viewed on SEBL’s website www.
transactions. Directors, management and those
southeastbank.com.bd. The Bank provides copies of
who are related persons do not participate in the
Annual Reports to the Bangladesh Securities and Exchange
consideration to approve such transactions.
Commission, Bangladesh Bank, Dhaka Stock Exchange
iv) The bank continues to have regular communication Limited and Chittagong Stock Exchange Limited for their
with the shareholders through periodic updates of reference. Investors may read them at public reference
performance and at any other time when it believes room or library.
it to be done in the best interest of shareholders
generally. Investors’ Inquiries
v) At times, the investors lodge complaints. These Queries relating to shareholdings, for example, transfer
complaints are timely resolved. Investors at times of shares and payment of dividend, are to be sent to the
lodge complaints through DSE and CSE. Those are following address:
also timely taken up and resolved. The concerned
investors and the DSE/CSE are informed of the Investors’ Relation Department
resolution of the complaint.
Address : Southeast Bank Limited
SEBL follows the following principles in dealing with Head Office Share Division,
the Investors Eunoos Trade Centre (Level-2)
52-53, Dilkhusha C/A, Dhaka-1000
Fair treatment
Web Address : www.southeastbank.com.bd
Timeliness in the resolution of investors’ complaints Name of Contact Person : Mohammad Omar Faruque
Information to investors about the resolution of their Vice President
complaints E-mail: mohamad.faruque@southeastbank.com.bd
Phone : +8802 9567271
Friendliness with all investors and all investor (10:00 A.M. to 6:00 P.M.)
segments. Fax : +8802 9567273
Protection of investors’ interest.
SEBL
Outlook
We are proud of our achievements
and careful of our future. We will
continue to capitalize on our
strengths, address our
weaknesses, seize
opportunities in the face
of threats to become
market leader in all
areas.
SEBL OUTLOOK
Products and Services 218

Media Highlights 220
Caring for the Employees (Health and Safety) 224
Career Development Program 225
Contribution to National Exchequer 226
Empowering Women 226
Environment - Responsive Bank 227
SEBL Green School 228
Financial Inclusion: Mobile Banking Services – Telecash 230
Connecting with Customers 230
Service Excellence in Action 231
Bank's Network: List of Branches and ATMs 232
Memories of 21st AGM 242
Worldwide Correspondents Network 244
Products
and
Services
CONVENTIONAL VALUE ADDED
BANKING DEPOSIT SERVICES
PRODUCTS
Student File
Saving Bank Account (SB) Locker Service
CARD SERVICES Current Deposit Account (CD) Insurance Coverage
Short Notice Deposit (SND)
Deposit Scheme
Fixed Deposit Receipt (FDR)
SEBL VISA Credit Card Senior Citizen Scheme
Monthly Saving Scheme (MSS)
SEBL Debit Card- My Card Monthly Income Scheme (MIS) Passport Endorsement
SEBL VISA Platinum Credit Card Pension Savings Scheme (PSS) Individual Remittance
SEBL My Remit Card Double Benefit Scheme (DBS) (Inward and Outward)
SEBL Dual Currency Wage Earners Pension Savings
Internet Banking Service
Scheme (WEPSS)
VISA Credit Card
Anonya(™)
SEBL VISA Virtual Card
Bichokkhon(™)
ISLAMIC BANKING DEPOSIT

PRODUCTS
Mudaraba Savings Bank Account
Al-Wadiah Current Deposit Account
Mudaraba Short Notice Deposit
Mudaraba Monthly Savings Scheme
Mudaraba Monthly Income Scheme
TREASURY SERVICES
Mudaraba Pension Savings Scheme
Mudaraba Double Benefit Scheme
Fixed-income Investment Portfolio Service
Mudaraba Millionaire Deposit Scheme
(Individual and Corporate)
Mudaraba Term Deposit Receipt
Foreign Exchange Fund Management (Spot,
Hajj Sanchaya Prokalpo
Forwards, SWAPS)
Mudaraba Super Double Benefit Scheme
Treasury Auction Management (Primary Dealer)
Mudaraba Cash Waqf
Bank’s Liquidity and Fund Management
Mudaraba Mohor Savings Scheme
Export/Import Fund Management
Secondary Transaction of Govt. Securities
SME & AGRI. LOAN IMPORT SERVICES

Southeast Shopan Documentary Credit:
Southeast Shikhor a. Opening Import Documentary Credit
Southeast Shuprova (Local and Foreign)
Southeast Shopnil b. Arranging Add Confirmation through
Southeast Agri. Loan Foreign Correspondent Banks
c. Arranging Discounting through Foreign
Correspondent Banks ADDITIONAL SERVICES
Post Import Finance : PROVIDED BY OFF-
a. Trust Receipt (TR) SHORE BANKING UNIT
b. Time Loans (TL)
c. Term Loans Usance Payable At Sight (UPAS)
facility to the Documentary
Documentary Collection services:
Credit opened by the AD
a. Documentary Collections against
Branches
Payment (D/P)
Time Loan in Foreign Currency to
b. Documentary Collections against
the AD Branches
Acceptance (D/A)
Term Loan in Foreign Currency
Issuing Shipping Guarantee
CORPORATE LOAN EXPORT SERVICES

Working Capital Finance
Advising Export Documentary Credit
Term Finance
Transferring Export Documentary Credit
Project Finance
Opening Back- to-Back Documentary Credit
Syndication & Club Finance
(Local & Foreign)
Work Order Finance
Real Estate Finance Foreign Documentary Bills Collection:
Trade Finance a. Documentary Collections against Payment (D/P)
Commercial Finance b. Documentary Collections against Acceptance (D/A)
Export Finance Pre-shipment Finance: Packing Credit
Loan to NBFI
Post-shipment Finance:
a. Foreign Documentary Bills Purchase (FDBP)
b. Purchase/Discounting Export Bills (Local)
c. Export Development Fund (EDF) from Bangladesh Bank
RETAIL BANKING d. Cash Incentive from Bangladesh Bank
SERVICES Foreign Currency (FC) Account

Resident Foreign Currency Deposit Account (RFCD)
SEBL Home Loan Non-Resident Foreign Currency Deposit Account (NFCD)
SEBL Personal Loan Non-Resident Taka Account (NRTA)
SEBL Car Loan Export Retention Quota (ERQ) Account
220
Media
Highlights
Southeast bank outlook


Caring for the Employees

(Health and Safety)
The compensation and benefit package for the employees of the bank is designed by taking into consideration the
strategic goals and business objectives of the Bank. Other than the salary, the bank provides various cash and non-
monetary benefits to its employees i.e. contributory provident fund, gratuity, incentive bonus, encashment of un-
availed leave, car maintenance allowance and house furnishing allowance, etc. It revises the salary structure of the Bank
periodically for inflation adjustment and better living of its employees.
The bank believes that good health and safety of the employees make a significant contribution to the bank’s profitability
and ensure continual improvement in health and safety standards. The bank ensures appropriate health and safety system
in its work places. It has established “Southeast Bank Health Care Center” at Head Office to provide health advice and First
Aid treatment for both the male and female employees of the Bank.
Bank gives great emphasis on keeping the employees’ health fit and active. To support the healthcare facility of the
employees, bank has established a health care centre at its Head Office which can be used separately by both male and
female employees. Bank has already established an e-library and going to start a cafeteria at Head Office.
Bank provides financial assistance to support special medical care of the employees. In 2016, bank donated BDT
1,425,615.00 million to employees for their medical treatment. Southeast Bank Limited (SEBL) believes that sound physical
and mental fitness of the employees is the key to sustainable growth of the bank.
To facilitate day care services for the children of employees of the bank, it has established a Day Care Center at Mothijheel,
Dhaka jointly with 21 other private commercial Banks. This facility gives comfort to our employees and help them
discharge their duties with more satisfaction.
Career Development
Program
The career development program of Southeast Bank Limited is designed to provide self-understanding and necessary
tools to its employees to pursue a meaningful career and prepare themselves for higher level positions within the Bank.
The Bank’s Career Development Program intends to help its employees to explore and to sort out their interests, abilities
and strategically develop towards job goals.
The Bank considers its employees as the most valuable asset. The Career Development Program of the Bank contains
training, workshops, seminars and specialized programs. Each and every year the Bank devotes considerable amount of
resources for continuous development of the employees through in-depth operational and professional training relating
to laws and practices, rules and regulations of trade finance, investment/loans and advances, day to day banking operation,
reporting and compliance, Information Technology, leadership, time and stress management, skill development and
global banking competencies etc. The Bank has a wide span of 8000 sft own Training Institute located at the business hub
of Dilkusha C/A, Dhaka. Southeast Bank Training Institute conducts Training Needs Assessment (TNA) on regular basis to
identify the Training Needs of the Employees of the Bank.
In the year 2016, Southeast Bank Training Institute has conducted a total of 96 (Ninety Six) training courses, workshops,
seminars and round table discussions including Foundation Training Courses for newly recruited freshers in the positions
of Probationary Officer, Trainee Officer, Trainee Cash Officer at its institute. It has also conducted 2 (two) outreach training
programs at Chittagong and Sylhet. The participants of the courses/workshops/seminars were from all levels of Officers
according to the contents of the programs. A good number of senior level Executives also participated in several
workshops/seminars.
Apart from the above, a total number of 215 officials of different grades participated in training/ workshops/seminars in
various institutions at home and abroad under Career Development Program of the Bank in the year 2016.

Contribution to National Exchequer

During the fiscal year 2015-2016, Southeast Bank’s contribution to the National Exchequer was BDT 1,644.59 million. The
Bank’s contributions to the National Exchequer for the last five (5) years are given below:
Year Amount in million

2015 1.644.59
2014 2,519.31
2013 2,573.77
2012 2,069.85
2011 1,802.80
Southeast Bank has been awarded the country’s 6th highest Tax Payers in the Banking Institution Category for the
assessment year 2015-2016.
Empowering Women
Southeast Bank Limited (SEBL) believes in the empowerment of women for sustainable and balanced development of
the Bank. It will not be possible to achieve the organizational goal without active participation of female workforce of
the Bank. In support of female empowerment, the bank gives priority to recruitment of qualified female employees and
ensures their career progression. The Bank does not allow any discrimination between male and female employees and
it encourages the women to take up leadership opportunity for balanced development of the bank. As part of women
empowerment, SEBL established two ladies branches namely, Moghbazar Ladies Branch and Dhanmondi Ladies Branch
where all the employees are women including the Heads of Branches. Out of total number of 2089 officials of the Bank as
on 31st December, 2016, 446 employees i.e. 22 percent were female.
Environment -
Responsive Bank
SEBL takes pride in its partnership with a prominent energy fund named Global Climate partnership Fund (GCPF) managed
by RespoosAbility AG of Switzerland. In 2016 we could drawdown 2nd trench of USD 5.00 million after successfully
utilizing USD 5.00 million in year 2015.
SEBL under a technical assistance of GCPF engaged Frankfurt School of Management and Finance -a renowned European
Educational institution for capacity building in Energy Efficiency and Renewable energy financing.
Under another technical assistance of the fund world famous “Enclude” advisory group of Netherlands is helping the Bank
develop a social and environmental management guideline that will be rolled out in early 2017.
Environmental and social risk means the risk of causing pollution or destruction of the natural environment (land, water,
air. natural habitats, animals and plant species) and violation
SEBL Green School

Introduction Extra Academic Activity
Southeast Bank Green School is a noble venture of Our school has already been implementing many plans
Southeast Bank Limited. It started functioning from 2013. and projects. We offer enough extra-curriculum activities
The aim of the school is to provide quality education in for the students to ignite their inner zeal and longing
English Medium to the students at a reasonably lower cost for learning. Our teachers and students do not confine
affordable to the parents of the locality. The school has also themselves within the boundary of academic activities.
extra-curriculum activities for students. The school aims at They travel beyond and involve themselves in extra-
creating a right human resource who enter to learn and curriculum activities like annual sports, science fair,
ultimately go forth to serve the society. graduation ceremony, several competitions on singing,
dancing, debate, drama, recitation, art, etc..
School Curriculum
Our participation in celebration of events
The school is based on Edexcel British Curriculum. The
school offers classes from pre-play (starts with age 2.5 years We integrate our students in the celebration of national
old) to 10th grade (O’level). At present, the school has 21 occasions and traditional events. It is intended to develop
dedicated teachers. They serve under the supervision of in them the seeds of patriotism. We come out with specially
an experienced principal. . designed programs on the occasions of the International
Mother Language, Independence Day, Victory Day, Pohela Looking forward

Baishak etc.
We have completed a very successful year in 2016. With
Technology-Based Education its ongoing performance, the school has succeeded in
drawing keen interest among the dwellers of the area.
The school is equipped with all modern equipments We look forward with much energy and optimism to
and facilities. To facilitate learning of our students, we the upcoming academic sessions. It will herald further
have a science laboratory and a computer laboratory. development and innovation both in academic and
We encourage our students to elevate their thoughts infrastructural areas. Based on the success already
independently and comfortably in Social Club along with achieved, we are confident that Southeast Bank Green
the classroom activities. School will develop further and emerge as an ideal temple
of learning within a short period of time.
Financial Inclusion:
Mobile Banking Services – Telecash
Mobile Financial Service (MFS): Southeast Bank Limited
(SEBL) has been providing mobile financial services with the
brand name of TeleCash to its customers since January 29,
2015. Around 55,000 customers have been enrolled so far in
the TeleCash network. Among them, 32,000 customers are
availing TeleCash services through the channels of USSD and
Android-based Mobile Apps according to their convenience.
Utility Bills Payment, Tuition Fees Payment and mobile Top-
up services are the most prominent services out of its wide
range of services. Near about 5200 authorized agents across
the country are under the TeleCash distribution channel to serve mobile financial services to the remote customers and
majority of them are unbanked people. Monthly average transaction of TeleCash is BDT.855 million by considering last six
months transaction. Recently TeleCash has joined the pilot project of ‘Access to MFS for women in Bangladesh’ which has
been jointly initiated by International Finance Corporation (IFC) and Bangladesh Bank. SEBL is trying to execute school
banking program (i.e. educational institution-based financial literacy and financial services program) by deploying its
TeleCash MFS delivery channel. SEBL is planning to incorporate QR (Quick Response) Code Technology with TeleCash MFS
System to bring a unique dimension in electronic banking concept. Core objective of TeleCash is to achieve customer
satisfaction by ensuring instant and secure transaction and park no-cost deposit for the Bank.
Connecting with Customers

Southeast Bank Limited (SEBL) offers a wide range of products and services to corporate, SME and retail customers to
meet the tailormade requirements of all segments of customers. On the eve of the Bank’s 21st Anniversary, it launched
a special deposit campaign named “Nibir” from 15 May 2016 to 30 June 2016 which offered some attractive benefits
on Savings/Current accounts for Women and Senior Citizen. “Anannya” is an exclusive savings product for women and
“Bichokkhon” is an attractive savings product for Senior Citizens. The campaign was a resounding success as it could
mobilize large number of deposit customers and a significant volume of low cost deposit. The Bank will continue to
introduce unique and innovative products and services to connect with its existing and potential customers and to meet
their ever evolving financial needs.
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 and promptly. Every branch has a dedicated “Customer Service and
Compliant Management Desk” for dispute resolution. Customers can lodge complaints in person or through other available
means such as letter, telephone, facsimile and email. Compliant Lodgment Forms are available at all our branches. We deal
quickly with complaints received from the customers. We seek ideas and suggestions of the customers on how we can
serve them better. The customers can give their valuable feedback through Service Quality Forms available at all branches
under sealed envelope. The branches send the sealed envelopes containing Service Quality feedback received from the
clients to the Head Office for evaluation of customer opinion. The 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.
Branch Supervisors at Head Office work relentlessly to ensure service excellence. Supervisors periodically visit the branches
to monitor various performance areas including quality of customer service of the branches. In the Mangers’ Conferences,
different aspects of branches are elaborately reviewed and necessary steps are taken for further improvement of the
service quality of the bank. As part of off-site supervision, the supervisors can monitor their respective branches’ activities
through Central Monitoring System (CMS)-(a state of art technology) which has been placed at the Bank’s Head Office.
According to BRPD Circular No.07 dated July 05, 2015, Southeast Bank is the pioneer among peer banks, to set-up this
technological solution in order to become compliant and diciplined.

Bank’s Network:
List of Branches and ATMS
02
12
02
09
64
01 30
08
BRANCHES AND ATMS

> DHAKA DIVISION (64) > RAJSHAHI DIVISION (09)
> CHITTAGONG DIVISION (30) > RANGPUR DIVISION (02)
> SYLHET DIVISION (12) > BARISAL DIVISION (01)
> KHULNA DIVISION (08) > MYMENSINGH DIVISION (02)
DHAKA DIVISION (64) Agargaon Branch Ashulia Branch (Rural)

Plot # E-4/B (1st Floor) Helim Shopping Complex
Principal Branch Agargaon Administrative Area, (Opposite Fantasy Kingdom Main Gate)
1, Dilkusha Commercial Area, Sher-e-Bangla Nagar, Mohammadpur, Ashulia, Dhaka
Dhaka-1000. Dhaka-1207, Tel: 58151717, 9132747, Tel: 7788440, 7788420
Tel: 9563101, 9550081, 9567271 9134247, 58150498, 58153934 Fax: 7788441
Fax: 88-02-9551575 Fax: 9132704
Narayanganj Branch
Imamganj Branch Banani Branch Holing # 26-29, S. M Maleh Road
Bhuiyan Market Plot No.71, Block-B, Kemal Ataturk Tanbazar, Narayanganj
163/2, Mitford Road, Dhaka Avenue, Banani, Dhaka Tel: 7648201, 7648202, 7648203,
Tel: 7314801, 7316423, 7318567, Tel: 9860363, 8861697, 8859518, 7634331, Fax: 7648200
7316644, Fax: 88-02-7314801 8859987, 8861629
Fax: 88-02-9841960 Savar Branch (Rural)
Plot # A-109, Bazar Road (1st Floor)
Bangshal Branch
Motijheel Branch Pourasava & P.S. : Savar, Dhaka
14/3, North South Road, Dhaka
(Islamic Banking) 125, Motijheel C/A Tel: 7743691, 7743692, 7743693,
Tel: 7121248, 7121251, 9567163,
(1st Floor), Dhaka-1000 7743694, Fax: 7743690
7176116, 7176117
Tel: 9567286, 9567202, 9567303,
Fax: 88-02-9567164
9567262, Fax: 9567701 Mouchak Branch
Karnaphuli Point (1st Floor)
Gulshan Branch
Aganagar Branch (Rural) 70, New Circular Road, Malibagh,
House # 82 CES (F) 1, Gulshan Avenue,
“Mahboob Plaza” (1st & 2nd Floor) Dhaka, Tel: 8333347, 8333676, 8333678,
Dhaka. Tel: 9883491, 98834 01-5,
Aganagar, Keraniganj, Dhaka 8333679, Fax: 8333348
9883492, Fax: 88-02-9883495
Tel: 7772516, 7761133
Fax: 7761155 Konabari Branch (Rural)
Dhanmondi Branch
Plot # A-147/148, BSCIC I/R
House # 23 (New),
Corporate Branch Union: Konabari,
Road # 16 (New)/27 (Old)
Eunoos Trade Centre (Ground Floor) P.S.: Joydebpur, Dist.: Gazipur
Dhanmondi R/A, Dhaka
52-53, Dilkusha C/A, Dhaka-1000 Tel: 9298840, 9298836, 9298838,
Tel: 8122474, 9123183, 9123518,
Tel: 9567764, 9551444, 9554447, 9298839, Fax: 9298837
9123167, Fax: 88-02-9111427
9564878, Fax: 9571424
Tongi Branch (Rural)
Uttara Branch
Shyamoli Branch 8/B, Anarkoli Road (1st Floor)
House # 1, Road # 11, Sector # 1

ASA Tower (2nd Floor) Tongi Bazar, Gazipur
Uttara, Dhaka-1230
23/3 & 23/14, Khilji Road, Block # B, Tel: 9816647, 9816648, 9816650-51
Tel: 8922538, 8923680, 8916538
Mohammadpur, Shyamoli, Dhaka Fax: 9816649
Fax: 88-02-8923781
Tel: 8123551, 8112250, 8128678,
8112227, Fax: 8120687 Bashundhara Branch
Kawran Bazar Branch
Plot # 142, Block # B
Jamuna Bhaban (1st Floor), 2, Kawran
Joypara Branch (Rural) Bashundhara R/A, Baridhara, Dhaka-1212
Bazar C/A, Dhaka-1215
Begum Aysha Shopping Complex Tel: 8401031, 8401032, 8401034-5
Tel: 9136112, 8189737, 9139276,
(1st Floor), Holding # 222, Fax: 8401033
8189738-40, Fax: 88-02-9136510
Joypara Pourasava
Thana: Dohar, Dist.: Dhaka Sat Mashjid Road Branch
New Eskaton Branch
Tel: 06223-56040, 56041, 56042 ADC Empire Plaza (1st & 2nd Floor)
Chowdhury Centre
Fax: 06223-56040 Ext.-111 Plot # 183 (Old) 91 (New),
23/Ka, New Eskaton Road,
Road # 22 (Old) 12/A (New)
(1st Floor), P.S. : Ramna, Dhaka-1000
Kakrail Branch Sat Mashjid Road, Dhanmondi, Dhaka
Tel: 9360953, 9340001, 9330176,
Toma Tower (1st & 2nd Floor) Tel: 8191167, 8191168, 8191170,
9340796, Fax: 88-02-9362177
77/1, VIP Road, Kakrail, Dhaka 8191171, Fax: 8191169
Tel: 9356115, 9356116, 9340852-3
New Elephant Road Branch
Fax: 9355990 Mohammadpur Branch
Kazi Bhaban
Axis Delvista (1st Floor)
39, New Elephant Road
Madhabdi Branch (Rural) 7/1, Aorongozeb Road, Block-A,
(1st and 2nd Floor)
Khatian # 28 (1st Floor), Madhabdi Mohammadpur Housing Estate
Dhanmondi, Dhaka-1205
Pauroshava, PS & Dist.: Narshingdi Mohammadpur, Dhaka
Tel: 9674588, 9674327, 9674324-5
Tel: 9446127, 9446125 Tel: 8129649, 8129604, 9101254,
Fax: 88-02-9674326
Fax: 9446126 58150961, Fax: 9119583
Pragati Sarani Branch Joydebpur Branch (Rural) Mohakhali Branch

Plot # Ga-25/5/1, Shahjadpur Holding # 235, Block # K, Shib Bari More “Bay’s” (1st Floor)
Pragati Sarani, Gulshan, Dhaka B.I.D.C Road, Ward # 3, Gazipur 50, Mohakhali C/A, Dhaka
Tel: 8899238-9, 8899610, 8899240 Pauroshova, Thana: Joydebpur, Tel: 9882523, 9885712, 9882527,
Fax: 8899208 Dist.: Gazipur. 9885710, Fax: 9885711
Tel: 9252852, 9252851
Mawna SME/Krishi Branch Fax: 9252850 Banasree Branch (Rural)
Holding # 1497, Mawna Bazar Road Twin Tower, House # 13, Block # C,
(1st Floor), Sreepur Pauroshava Donia Branch (Rural) Main Road, Banasree Project, East
Ward # 8, Thana : Sreepur, Dist.: Gazipur “Chowdhury Complex” (1st Floor), Rampura, Dhaka
Tel: 068-2552900, 068-2552901 Village: Noyapara, Mouza: Dhania Mob: 01730-781279
Fax: 068-2552902 Union: Dhania, Thana: Demra,
Dist.: Dhaka. Tel: 7547955, 7548055 Bandura Branch (Rural)
Tangail SME/Krishi Branch Fax: 7548122 Puraton Bandura Bazar
“Noor Plaza”, Holding # 263, Mouza: Puraton Bandura,
Tangail Main Road Rupnagar Branch Union: Bandura
Ward # 13, Pauroshava & “Rangan”, Plot # 14, Road # 11 Thana: Nawabgonj, Dist.: Dhaka
Thana: Tangail, Dist.: Tangail Ward # 7, Rupnagar Residential Area Mob: 01730-781278
Tel: 0921-51336, Fax: 0921-62798 Mirpur Housing Estate, Dhaka City
Sarulia Branch
Corporation, Mirpur, Dhaka
Madanpur SME/Krishi Branch Samsul Haque Nilu Shopping Complex
Tel: 8031924, 8051981
Ekata Samabay Super Market (2nd Floor) Mouza: Sarulia, Union: Sarulia
Fax: 8051965
Mouza: Chanpur, Union: Madanpur Thana: Demra, Dist.: Dhaka
Thana: Bandar, Dist.: Narayanganj Mob.: 01730-792169
Kamrangirchar Branch (Rural)
Tel: 7648083, 7648081
“Elham Square”, Rony Market Road Kapasia Branch (Rural)
Fax: 7648082
Mouza: Char Kamrangirchar Akter Market
Narsingdi SME/Krishi Branch Union: Sultangonj, Kapasia Main Road
“Islam Plaza” (1st Floor) Thana: Kamrangirchar, Dist.: Dhaka, Thana: Kapasia, Dist.: Gazipur
Holding # 1, Maddha Kanda Para Tel: 55160210, 55160209 Mob.: 01766-673597
Sadar Road, Ward # 4, Narsingdi Fax: 55160211
Pauroshava, Thana: Narsingdi Sadar, Mirpur Branch
Dist.: Narsingdi, Tel: 9452082, 9452080 Bhulta Branch (Rural) Simpletree
Fax: 9452081 Bhulta Bus Stand, Plot # 01, Road # 08, Block-C, Section-06
Union: Golakandail, Thana: Rupgonj, Mirpur Housing Estate, Pallabi, Dhaka
Rokeya Sarani Branch Dist.: Narayanganj Mob.: 01766-673595
“Kusholi Bhaban” Mob.: 01755-637195
Holding # 238/1, West Kafrul, Rokeya Ashulia Bazar Branch (Rural)
Sarani, Mirpur, Ward # 16 Dakhin Khan Branch (Rural) Shahid Sonamia Plaza,
Dhaka City Corporation, “Faisal Mansion” Bangabandhu Road
Thana: Sher-e-Bangla Nagar Shah Kabir Mazar Road Ashulia Bazar, Mouza: Boro Ashulia
Dhaka. Tel: 9103249, 9103251, 9103246, Village: Moshair, Mouza: Uttar Khan Union & Thana: Ashulia, Dist.: Dhaka
9103247, Fax: 9103248 Union: Dakhin Khan Adarsha Union Mob.: 01755-630358
Parishad, Thana: Dakhin Khan,
Islampur Branch Dist.: Dhaka. Balivadra Branch (Rural)
“Adel Complex” (1st, 2nd & 3rd Floor) Tel: 8953290, 8953292 Bhandari Latif Super Market,
40, Islampur Road, Dhaka - 1100 Fax: 8953299 Balivadra Bazar, Mouza: Ganakbari,
Tel: 57394570, 57396174, 57394538, Union: Damsona
57394589, Fax: 57396175 Gopaldi Branch (Rural) Thana: Ashulia, Dist.: Dhaka
Gopaldi Bazar, Union: Sadasadi Mob.: 01755-630359
Hemayetpur Branch (Rural) Thana: Araihazar, Dist.: Narayanganj
Hemayetpur Super Market (2nd Floor) Mob.: 01755-637194 Kalibari Branch (Rural)
Mouza: Kulashur, Union: Tetuljora Sobur Market, Duptara Adorsha Bazar
Thana: Savar, Dist.: Dhaka Ati Bazar Branch (Rural) Sattabhandi Bhuiyan Para (Kalibari)
Tel: 7747914, 7747464, 7747915, Mouza: Ati, Union: Sakta Mouza & Union: Duptara,
7747916, Fax: 7747465 Thana: Keranigonj, Dist.: Dhaka Thana: Araihazar, Dist.: Narayanganj
Tel: 55103281, 55103282 Mob.: 01939-900570
Munshigonj Branch Fax: 55103280
“B. M Complex” (1st Floor) Rajbari Branch
House # 55, Jubillee Road, Ward # 3 Hasnabad Branch (Rural) “Saleha Akkas Tower”
Munshigonj Pauroshava, Thana: “Roky Tower”, Hasnabad, Mouza: Ekuria Holding # 237, Binodpur (College Road)
Munshigonj Sadar, Dist.: Munshigonj Union: Subatta, Thana: Keranigonj, Ward # 08, Thana : Rajbari Sadar
Tel: 7620594, 7620591, 7620592, Dist.: Dhaka Pauroshava : Rajbari, Dist.: Rajbari
7620593, Fax: 7620595 Mob: 01730-781277 Mob.: 01934-448903
Dhanmondi Ladies Branch CHITTAGONG Feni Branch

“Rupayan Khan Plaza” DIVISION (30) Surma Sadan (1st and 2nd Floor),
Plot # 500/A (Old) / 18 (New), Road # 7, 176, 177 and 178 Trunk Road
Dhanmondi R/A, Dhaka Agrabad Branch Thana - Feni Sadar, Dist. - Feni
Mob.: 01934-448906 Faruk Mahal, 93, Agrabad Commercial Tel: 0331-63004, 62884, 61362, 61852
Area, Chittagong Fax: 0331-62884 Ext.-102
Moghbazar Ladies Branch Tel: 031-721152, 031-713097-8,
“Hall Mars”, Holding # 66 (Old) 031-7130 94-5, 031-721151-3 Bashurhat Branch (Rural)
Outer Circular Road, 05 (New) Shahid Fax: 88-031-713096 Ayesha Motaleb New Market
Sangbadik Salina Parvin Sarak Holding # 428, Main Road, Ward # 5,
Khatunganj Branch
Boro Mogbazar, Dhaka Bashurhat Pauroshava, Companyganj,
410/411, Khatunganj, Chittagong
Mob.: 01934-448905 Noakhali. Tel: 03223-56415, 56461
Tel: 031-2863594, 031-621934,
031-620166-7, 031-620516 Fax: 03223-56430
Kazi Nazrul Islam Avenue Branch Fax: 88-031-62 05 17
“Rupayan Trade Centre” Chowmuhani Branch (Rural)
114, Kazi Nazrul Islam Avenue, Dhaka Jubilee Road Branch Hossain Market
Mob.: 01755-624864 96, Jubilee Road, Chittagong Holding # 276-284, D. B Road
Tel: 031-635265, 031-611712-5, Chowmuhani Pauroshava,
Sherpur Branch 031-635245, 031-635246 Thana: Begumganj, Dist.: Noakhali
Muslim Market Fax: 88-031-611716
Tel: 0321-53534, 0321-53535,
Holding # 166, Shahid Bulbul Sarak 0321-54018, Fax: 0321-54018
Halishahar Branch
Munshi Bazar, Ward No.: 02,
House # 3, Block # G
Pourasava: Sherpur Port Connecting Road, Halishahar Momin Road Branch
Thana: Sherpur Sadar, Dist.: Sherpur Housing Estate Equity Central, 42-43, Momin Road
Mob.: 01705-403797 Halishahar, Chittagong Chittagong City Corporation
Tel: 031-727949, 031-716826, P.S.: Kotwali, Dist.: Chittagong
Ghior Branch (Rural) 031-2526183, 031-2526184 Tel: 031-2857345, 031-2857346,
Mouza+Union: Ghior, Upazila : Ghior , Fax: 88-031-727949 031-2857347, 031-2857348
Dist.: Manikganj Fax: 031-2857349
Mob.: 01705-403799 CDA Avenue Branch
(Islamic Banking) Madambibir Hat Branch (Rural)
Balla Branch (Rural) Ali Villa, 1640/1861 (New), CDA Avenue Madambibir Hat, Union-Bhatiary
Asian Highway, East Nasirabad P.S.: Sitakunda, Dist.: Chittagong
Mouza & Union: Balla
Panchliash, Chittagong
P.S.: Kalihati, Dist.: Tangail Tel: 031-2781001, 031-2781003,
Tel: 031-652150, 031-654875,
Mob.: 01705-403798 031-2781004, 031-2781005
031-2552385-6
Fax: 031-2781002
Fax: 031-2552387

Malibagh Branch
ABN Tower, 45, Siddheswari Circular Pahartali Branch Comilla Branch
Road, Dhaka, Mob.: 01787-694948 Hajrat Taiyabia Complex 359/328, Jhawtala
Singair Branch (Rural) Holding # 801 (New), 1st Kandir Paar, Thana: Kotwali, Comilla
Singair New Market D.T Road, Alongkar Mour Tel: 081-64278, 081-64280,
Holding No.: 2/2, Kansha Road Abdul Alir Hat, Pahartali, Chittagong 081-64279, 081-61322
Ward No.: 04, Pourasava + P.S.: Singair Tel: 031-2771001, 031-2771002-4 Fax: 081-61321
Dist.: Manikganj Fax: 031-2771005
Mob.: 01934-448918 Lohagara SME/Krishi Branch
Cox’s Bazar Branch Mostafa City Center,
(Islamic Banking) Mouza: Amirabad Thana:- Lohagara,
R. K. Mission Road Branch
Asha Shopping Complex
Nir Chhayabithi Union: Amirabad, Dist.: Chittagong
430-431, Bazar Ghata
53, 53/1, R. K. Mission Road, Dhaka Tel: 0303-456623, 01713-065986 (Mob.)
(1st Floor), Cox’s Bazar
Mob.: 01934-448919 Fax: 0303-456624
Tel: 0341-63406, 0341-51053
Fax: 0341-64742 Brahmanbaria SME/Krishi Branch
Monipur Bazar Branch (Rural)
Shikder Plaza, Holding # 1001
“Isha Chowdhury Tower” Chhagalnaiya Branch
(Islamic Banking) Dr. Faridul Huda Road, Ward # 4
Pirozali Road, Monipur Bazar
Union: Bhawal Gor, P.S.: Gazipur Sadar Mir Shopping Complex (1st Floor) Pauroshava & Thana: Brahmanbaria
Dist.: Gazipur Chhagalnaiya Bazar, P.S.: Chhagalnaiya, Dist.: Brahmanbaria
Mob.: 01934-448920 Feni. Tel: 03322-78302, 78432 Tel: 0581-58202
Fax: 03322-78302 Ext.-111 Fax: 0581-58201
Hathazari SME/Krishi Branch Companigonj Branch (Rural) Shahjalal Uposhahar Branch

S. A Shopping Complex, “Saudia Manjil” (1st & 2nd Floor) Plot # 07, Block # D, Main Road,
Hathazari Bus Stand R.S Khatian # 395, Companigonj Shahjalal Uposhahar, Sylhet
Rangamati Road, Plot # 14238, Mouza: North Tirish, Union: 15 No. Tel: 0821-713057, 0821-713052,
Khatian # 2517, Mouza: Fatika, Nobipur (West), Nabinagar Road, 0821-713062, 0821-811655
Union: Fatehpur Thana: - Hathazari Thana: Muradnagar, Dist.: Comilla Fax: 88-0821-711820
Dist.: Chittagong, Tel: 031-2601855 Tel: 08026-59011, 59004
Fax: 031-2601856 Fax: 08026-59017 Bandar Bazar Branch
(Islamic Banking)
Shebarhat SME/Krishi Branch Chakaria Branch (Rural) Karimullah Market (1st Floor)
Shebarhat Bazar, Mouza – Razarampur “Society Jame Mosque Complex” Bandar Bazar, Sylhet
Feni Chowmuhani Sarak (1st Floor) Mouza: Chiringa, Chakaria Pauroshova Tel: 0821-810322, 812246, 4116495,
Thana: Chakaria, Dist.: Cox’s Bazar 4011350, 0821-721243
Thana – Shenbag, District - Noakhali
Tel: 03422-56161, 03422-56162 Fax: 0821-2831455
Tel: 01713-065972
Fax: 03422-56163
Sonagazi SME/Krishi Branch Kulaura Branch
Miabazar Branch (Rural)
Holding # 431, Ward #4, Pauroshava & Aziz Rowshon Shopping Centre and
Haji Siraj Mansion
Thana: Sonagazi, Dist.: Feni Garden City, Holding No. 334,
Mouza: Ashrabpur, Union: 2 No. Ujirpur
Tel: 03325-76386, 76377 Ward No. 3, Pourasava: Kulaura
Thana: Chauddagram, Dist.: Comilla
Fax: 03325-76386 Thana: Kulaura, Dist.: Moulvi Bazar
Mob.: 01766-665140
Tel: 08624-56208
Oxygen More Branch Haidergonj Branch (Rural) Fax: 08624-56208
Holding No.405, Kulgaon Gazi Super Market
Haidergonj Bazar, Mouza: Char Ababil Hetimgonj Branch (Rural)
Chittagong City Corporation
Union: Char Ababil, Upazila: Raypur Khoyruganj Jame Masjid Market
Oxygen Mour, Ward # 2, Thana: Bayezid
Dist.: Laxmipur Complex (1st Floor)
Bostami, Dist.: Chittagong
Mob.: 01766-673599 Thana: Golapgonj, Dist.: Sylhet
Tel: 031-2584018, 2584019,
Tel: 0821-840374, 840373
2584020, 2584059
Teknaf Branch (Rural) Fax: 0821-840372
Fax: 031-2584017
Alo Shopping Complex, PC-177,
K K Para, Main Road, Ward No.: 03, Pathantula Branch
Chowdhury Hat SME/Krishi Branch Pourashova: Teknaf, Thana: Teknaf Haque Mansion of Modina Market
“Halim Mansion”, (1st Floor) Dist.: Cox’s Bazar Thana: Jalalabad, Dist.: Sylhet
Chowdhury Hat, Mouza: Chikandandi Mob.: 01934-448900 Tel: 0821-728745, 0821-724300
Union: Fateyabad,
Fax: 0821-724300
Thana: Hathazari, Chittagong Gunabati Branch (Rural)
Tel: 031-2584007, 031-2584006 Mouza: Gunabati, Union: 12 No. Tazpur SME/Krishi Branch
Fax: 031-2584005 Gunabati Tazpur Bazar, Mouza: Boraya,
P.S.: Chouddogram, Dist.: Comilla
Union: 8 No Tazpur
Potherhat Branch (Rural) Mob.: 01709-633280
Thana: Balagonj, Dist.: Sylhet
“Khaiz Ahmed Shopping Centre” Tel: 08242-56191, Fax: 08242-56191
(1st Floor), Mouza: Noapara, SYLHET DIVISION (12)
P.O: Gujra Noapara, Union: 13 No. Biswanath SME/Krishi Branch
Laldighirpaar Branch
Noapara, Thana: Raujan, Dist.: Chittagong “Haji Monir Uddin Market”
Mubarak Tower
Tel: 031-2573214, 031-2573216, Natun Bazar, Biswanath, Mouza -
1794/1788, New Market, Sylhet
031-2573217, Fax: 031-2573215 Mashala, Union/Pourashova: Biswanath
Tel: 0821-710955, 0821-715382,
0821-710218 Thana: Biswanath, Dist.: Sylhet
Fatikchari Branch (Rural) Tel: 08224-56205
Fax: 88-0821-710102
“Mir Jahanara Complex” (1st Floor)
College Road (Bibir Hat), Moulvibazar Branch Beanibazar SME/Krishi Branch
Khatian # 4989, Union: Dhurang, Jarif Tower “Panchakhanda Haragabinda High
Thana: Fatikchari, Chittagong 199/2, M. Saifur Rahman Road, School Market”
Tel: 030-2256317, 030-2256316 Moulvibazar, Tel: 0861-53727-9 834, Beanibazar-Sylhet Road,
Fax: 030-2256315 Fax: 88-0861-53730 P.S.: Beanibazar, Dist.: Sylhet
Tel: 08223-56164, Fax: 08223-56165
Kotwali Branch Chouhatta Branch
“Equity Anitri” (1st Floor) Manru Shopping City Charkhai Branch (Rural)
Holding # 32, Shahid Sohrawardy Road Plot # 4953/4943 (1st Floor) Anisha Complex
Ward # 33, Chittagong City Corporation Chouhatta Mirboxtola Road Mouza: Kamar Gram, Union: 2 No.
Thana: Kotwali, Dist.: Chittagong Chouhatta, Sylhet Charkhai, Thana: Beanibazar,
Tel: 031-632750, 632751, 632752 Tel: 0821-720276, 0821-720276 Dist.: Sylhet
Fax: 88-0821-720276 Mob.: 01766-665141
Fax: 031-632753
KHULNA DIVISION (8) RAJSHAHI DIVISION (9) Natore Branch

“Lily Plaza”, Holding No.: 838, Kanaikhali
Khulna Branch Bogra Branch Ward No.: 04, Pourasava: Natore
Bhandari Manjil (2nd Floor) P.S.: Natore Sadar, Dist.: Natore
Haji Hanif Complex
776-777 Barogola, Bogra Mob.: 01712-803701
12 & 13, Khan Jahan Ali Road, Khulna
Tel: 041-730606, 041-7314 06, Tel: 051-68083, 68084, 68085, 68086
041-731306, 041-731606
Fax: 051-51939 RANGPUR
Fax: 88-041-731506
DIVISION (2)
Rajshahi Branch
Plot # 447, Mangol Bhaban (2nd Floor) Rangpur Branch
Jessore SME/Krishi Branch Alupatti Mour, P.O.: Ghoramara RDRS Complex
Holding # 11, R. N. Road, Ward # 2 P.S: Boalia, Dist.: Rajshahi Holding # 9416, Jail Road,
Pauroshava: Jessore, Kotwali, Jessore Tel: 0721-812203, 0721-812204, Radhaballab, Rangpur
Tel: 0421-67683, 0721-812205, 0721-812206 Tel: 0521-64672, 64673, 64778, 64779
Fax: 0421-68094 Fax: 0721-812207 Fax: 0521-64780
Satkhira SME/Krishi Branch Naogaon Branch Dinajpur Branch

“Kazi Habibur Rahman Market” Holding # 808/837, Ganeshtola
Holding # 5896, Polash Pole, (1st Floor)
Old Hospital Road (Bridge Mour) Jail Road, Dinajpur Municipal
Shahid Nazmul Sarak
Pauroshava: Naogaon, Corporation, Ward # 3, Thana: Kotwali,
(Satkhira Old Bus Stand) Dist.: Dinajpur
Thana: Naogaon Sadar, Dist.: Naogaon
Ward # 08, Satkhira Paurashava Tel: 0531-52025, 0531-52026
Tel: 0741-63227, 0741-63286,
Thana: Satkhira, Dist.: Satkhira Fax: 0531-52024
0741-63397, 0741-61274
Tel: 0471- 63568, 62508 Fax: 0741-61831
Fax: 0471- 63569 BARISAL
Chapainawabganj Branch DIVISION (1)
Sir Iqbal Road Branch Holding # 8, Boro Indara More,
“Noor Jahan Plaza” Ward # 15, Chapainawabganj Municipal Barisal Branch
155, Sir Iqbal Road, Khulna Corporation, Thana: Nawabganj Sadar 54 Sadar Road (1st Floor)
Dist.: Chapainawabganj Kotwali, Barisal
Tel: 041-721056, 731848, 724471
Tel: 0781-51717, 0781-51718 Tel: 0431-2176601, 0431-2176602,
Fax: 041-722852
Fax: 0781-51716 0431-2176603-04
Fax: 0431-64056
Rupdia Bazar Branch (Rural) Sirajganj Branch
“Bhowmik Super Market”, Basak Plaza MYMENSINGH
Mouza: Zirat, Union: 12 No. Norendrapur 947-948, Shaheed Suharawardy Road, DIVISION (2)
P.S.: Jessore Sadar, Dist.: Jessore Sirajganj,
Mob.: 01766-665142

Mob.: 01709-633282 Mymensingh Branch
“Minar Complex”, Holding # 09
Baneshwar Branch (Rural) Mukti Joddha Sarani (Choto Bazar)
Dumuria Branch (Rural)
Al-Haj Amzad Hossain Market Ward # 08, Pauroshava: Mymensing
R. R. Plaza, Mouza: Araji Sajiyara Mouza: Shibpur, Union: Baneshwar Thana: Kotwali Sadar, Dist.: Mymensing
Union: 11 No. Dumuria Thana: Puthia, Dist.: Rajshahi Mob.: 01934-448904
P.S.: Dumuria, Dist.: Khulna Mob.: 01766-673596
Mob.: 01705-403796 Off-Shore Banking Unit, DEPZ
Pabna Branch Zone Servicing Building-1
Kushtia Branch “Khairul Tower” Room # 77 (3rd Floor),
116, Mawlana Mohammed Ali Road Dhaka EPZ, Ganakbari,
Aneek Tower
(Narikel Bagan Road), Ward # 3 Savar, Dhaka, Tel: 7788628-9
295, Nowab Sirajuddoula Road
(Shibrampur) Pabna Pauroshava,
Ward # 03, Pauroshava : Kushtia Thana: Pabna Sadar, Dist.: Pabna Off-Shore Banking Unit, CEPZ
P.S.: Kushtia Sadar, Dist.: Kushtia Mob.: 0731-65027, 65032, 65059, 65073 Zone Service Complex (1st Floor)
Mob.: 071-71845, 071-71895 Fax: 0731-65089 East Wing North Chittagong EPZ
Chittagong, Tel: 031-740780
Chuadanga Branch Ishwardi Branch Fax: 031-740779
“Brothers Tower” “Adib Rana Plaza”
994/930 &1017, Station Road
Holding No.: 686-06, Thana Road
Ward # 07, Thana: Ishwardi
Ward No.: 03, Pourasava: Chuadanga Pauroshava: Ishwardi, Dist.: Pabna
P.S.: Chuadanga Sadar, Dist.: Chuadanga Mob.: 01787-678778
Mob.: 01934-448917
ATM Network
02
12
09 64
01 30
08
> DHAKA DIVISION (64) > RAJSHAHI DIVISION (09)

> CHITTAGONG DIVISION (30) > RANGPUR DIVISION (02)
> SYLHET DIVISION (12) > BARISAL DIVISION (01)
> KHULNA DIVISION (08)
Dhaka Division NSU ATM Aganagar Br. ATM

North South University Campus ATM P.S.: Keraniganj, Mouza: Subadda, Din
Corporate Br. ATM Booth Plot 15, Block-B, Complex, Kodomtoli Circle,
Eunoos Trade Centre (Ground Floor), Bashundhara, Dhaka-1229 Keranigonj, Dhaka
Plot #52-53, Dilkusha C/A, Dhaka-1000
Narayanganj Br. ATM Pirjongi Mazar ATM
Uttara Br. ATM-ATM-1- Sector-1 Holding #44, Mohim Ganguly Road, Pirjongi Shah Mazar,
House #1, Road #11, Sector #1, Uttara, Taan Bazar, Narayanganj Motijheel Coloney Jamee Masjid
Dhaka-1230 Complex Market, Shop No# 08,
Uttara - ATM-2, Sector 14 Pirjongi Shah Mazar, Outer Circular
Gulshan Br. ATM Plot No:20, Road No: 12, Road, Paltan Thana, Dhaka City
House #82 CES (F) Sector No: 14, Uttara Residential Corporation, Dhaka.
1, Gulshan Avenue Dhaka Model Town, Dhaka-1230
Elephant Road, ATM-2, Hatirpool
Dhanmondi Br. ATM ACS Textile ATM Holding No # 149/1, Elephant Road
House#23 (New), Road#16 (New)/ ACS Textiles (Bangladesh) Limited, (Presently- Dr. Kudrat -e- Khuda Road),
27(Old), Dhanmondi R/A, Dhaka Tetlabo, Word No: 03, P.O: Parabo, P.S: Thana # Kalabagan, Dhaka
Rupgonj, Narayanganj
Pragati Sarani Br. ATM Dholaipar ATM
Elephant Road-ATM-1 169/A/2 Dolaipar, Dhaka-1204
Plot No. GA - 25/5/1, Shahjadpur
Concord Arcadia
Pragoti Sarani, Gulshan, Dist.: Dhaka
Concord Arcadia Shopping Mall, Plot Tangail Br. ATM
Banani Br. ATM No. 1 & 2, Road No: 04, Dhanmondi Noor Plaza, Holding # 263,
Residential Area, Dhaka Main Road, Tangail-1900
Plot #71, Block #B, Kamal Ataturk
Avenue, Banani, Dhaka Satmasjid Road Br. ATM
Green Road-Comfort Hospital ATM
167, Green Road ADC Empire Plaza, Holding No# 91,
Dhonia Br. ATM
(Besides Comfort Hospital) Road No# 12/A, Satmasjid Road,
Chowdhury Complex” (1st & 2nd Floor)
Dhanmondi, Dhaka
440-441, Noyapara, Donia, Jatrabari, Bhulta Br. ATM
Dhaka - 1236 Bhulta Bus Stand, Union: Golakandail, Boro Mogh Bazar ATM
Thana: Rupgonj, Dist.: Narayanganj Shitol Bhaban
Mouchak Br. ATM
625, Boro Moghbazar, Red Crescent
Karnaphuli Point (1st Floor), 70 New Dokkhinkhan Road, Dhaka City Corporation,
Circular Road, Malibagh, Dhaka Faisal Mansion, Shah Kabir Mazar Road, Ramana Thana, Dhaka
P.S # Dakshin Khan, Dhaka
Madobdi Br. ATM Shahabuddin Medical College ATM
Madhabdi Pauroshava, Thana: Joydebpur Shahabuddin Medical College,
Narsingdi, Dist: Narsingdi Taj Tower,82, Shibbari more, Plot No-12, Road No-113/A,
Joydebpur, Gazipur Gulshan Model Town, Gulshan-2,
Savar Br. ATM

Dhaka-1212
Plot # A -109, Bazar Road (1st Floor), New Eskaton ATM-1
Pauroshava & P.S.: Savar, Dhaka Chowdhury Center, 23/Ka, Kapasia Br. ATM
New Eskaton Road (1st Floor), Akhter Market, 874, Kapasia Main Road,
Rokeya Sarani Br. ATM P.S.: Ramna, Dhaka - 1000 Village: Kapasia, Mouza: Banar Hawla,
“Khusholi Bhaban”, Holding # 1, West
Union : Kapasia, Kapasia Thana,
Kafrul Rokeya Sarani, Ward # 16, Dhaka Shimanto Square ATM
District : Dhaka
City Corporation, Thana: Sher -e-Bangla Shimanto Square Market, BGB,
Nagar, Mirpur, Dhaka Dhanmondi-02, Dhaka-1205
Farr Ceramics ATM
Bakshi Bazar, Bagshal-ATM “Farr Ceramics”,
Basundhara Br. ATM
Dhaka Medical City Corporation Noulapara (Bhabaniur), Monipur,
Plot#142, Block# B, Bashundhara R/A,
Market, Shop No-50, Union: Vaoalergor,
Baridhara, Dhaka -1212
Bakshi Bazar, Dhaka Gazipur Sadar Thana, Gazipur
Hemayetpur Br. ATM
Hemayetpur Super Market Mohammadpur Br. ATM Hasnabad Br. ATM
(2nd Floor), Thana: Savar, Axis Delvista (1st .Floor), Holding Rocky Tower, Subatta, Keranigonj
District: Dhaka No:7/1, Block - A, Aurongajeb Road, Thana, Dhaka
Mohmmadpur Housing Estate,
Ashulia Br. ATM Kamrangirchar Br. ATM
Mohammadpur
Helim Shopping Complex,(Opposite At the ground floor of Rony Market
Fantasy Kingdom), Ashulia, Dhaka Principal Br. ATM Bhaban, Holding No. 648-649,
Holding No: 1, Dilkusha C/A, Dilkusha Rasulpur, Market Road,
Konabari Br. ATM Road, Annex Building Hotel Purbani Ward No. 56,
Plot # A-147/148, BSCIC I/R, International, Ward: 32, Motijheel Dhaka South City Corporation,
Union: Konabari, P.S. - Joydebpur, Thana, Dhaka City Corporation, Dhaka Kamrangirchar Thana, Dhaka
Dist - Gazipur
Rupnagar Br. ATM Malibag Br. ATM Potherhat Br. ATM

“Rangan”, Plot # 14, Road # 11,Ward # “Fakhr-E-Nur ABN Tower”, Holding # Khaiz Ahmed Shopping Centre”
7, Rupnagar Residential Area,Mirpur 45, Siddeswari Circular Road, Ward No: (1st Floor), Raujan,
Housing Estate, Dhaka City 19, Ramna Thana, Dhaka South City Chittagong
Corporation,Thana: Mirpur, Dist.: Dhaka Corporation, Dhaka.
Jubilee Road Br. ATM
MBA Bhaban ATM Joydebpur, ATM-2 Haji Golam Rasul Market,
At the ground floor of Administrative “OK Tower”, Holding No: F-214/10, 96 Jubilee Road, Chittagong.
Building, Faculty of Business Studies, Hakkani Housing Society,
University of Dhaka, Shahabag Rajbari-Jourpukur Road, Ward No: 28, CDA Avenue ATM 1 & 2
Thana, Dhaka South City Corporation, Gazipur City Corporation, Joydebpur Ali Villa, 1640/1861 (New),
Dhaka-1000 Thana, District: Gazipur CDA Avenue, Asian Highway,
East Nasirabad, Thana - Panchliash,
Bhulta-ATM-2 Balla Br. ATM Dist.: Chittagong
Panchrukhi Bazar, Araihazar Balla, Mouza :Balla, Union:Balla,
MP Tower Building, Panchrukhi Bazar, Thana: Kalihati, District: Tangail Chakaria Br. ATM
Araihazar, Mouza Name: Panchrukhi, “Society Jame Mosque Complex”,
Union : Panchrukhi, Araihazar Thana, Ghior Br. ATM Chiringa, Chakaria Pauroshova,Thana:
District : Narayangonj Ghior, Union: Ghior, Thana: Ghior, Chakaria, Dist.: Cox’s Bazar
District: Manikganj
Ashulia Bazar Br. ATM Hathazari Br. ATM
“Shahid Sonamia Plaza”, Ashulia Bazar, Navana New Bury ATM S. A. Shipping Complex Hathazari Bus
Bangobondu Road, Ashulia Union, “Navana Newbury Place”, Road/Holding Stand, Ranganati Road, Plot # 14238,
Ashulia Thana, Dhaka No.4/1/A, Area: Subhanbagh, Mirpur Thana: Hathazari, Dist: Chittagong
Road, Ward No.17, Kalabagan Thana,
Kalibari Br. ATM Basurhat Br. ATM
Dhanmondi-1213, Dhaka South City
“Sabur Market”, Dhuptara Adarsha Kabirhat Road, Basurhat Bazar ,
Corporation, Dhaka
Bazar, Kalibari, Village: Shapta Bandi Basurhat Pourusava, PS: Companygonj,
Bhuyian Para, Mouza: Dhuptara, Union: Dist. Noakhali
Latif Bawany Jute Mills ATM
Dhuptara Union Parishad, Thana:
Latif Bawany Jute Mills Ltd. Companyganj Br. ATM
Araihazar, District: Narayangonj
Demra, Dhaka. Saudia Manjil (1st & 2nd Floor),
Balivhadra Br. ATM Nabinagar Road, Thana: Muradnagar,
Wari Br. ATM Dist.: Comilla
“Vhandari Latif Super Market”, Village:
4/2 Joykali Mondir, Wari, Dhaka
Balivhadra Bazar, Mouza: Ganakbari,
Union: Swanirvar Damsona Union Chowdhury Hat Br. ATM
Parishad, Thana: Ashulia, District: Dhaka Imamganj Br. ATM S.N. Tower, Dadaram Sharok Road,
Bhuiyan Market, 163/2, Chowdhury Hat Bazar
Mirpur Br. ATM Metford Road, Dhaka
“Simpletree” Plot # 01, Road # 8, Section Chowmuhani Br. ATM
# 6, Mirpur, Ward # 6, Dhaka City Agargaon Br. ATM Tara Manjil, Holding No# 72, Feni Road,
Corporation, Thana: Pallabi, District: 248-1/G, West Agargaon, Hajipur, PS# Begumgonj, Chowmuhani
Dhaka under the supervision of Mirpur Sher-e-Bangla Nagar, Dhaka Pourashava, Noakhali
Branch, Dhaka
Singair Br. ATM Cox’s Bazar Br. ATM
“Singair New Market”, Holding # 02/02, M&M Shopnaloy, Plot# A-12, Kolatoli,
Tongi Br. ATM
“Kazi Market”, Holding No: 8/B, Anarkoli Kansha Road, Singair Bazar, Singair Main Road, Cox’s Bazar
Road, Ward No: 57, Gazipur City Pauroshava, Ward # 04,
Corporation, Thana:Tongi, Gazipur. Upazilla/Thana: Singair, Mia Bazar Br. ATM
District: Manikganj Hazi Siraj Mansan, Chowddrogram
Rajbari Br. ATM Thana, Comilla
“Saleh Akkas Tower”, Holding # 237, Chittagong
Haidergonj Br. ATM
Binodpur (College Road), Ward # 08, Division Kazi Super market,
Rajbari Porusova, Rajbari Sadar Thana,
Dist.-Rajbari. Haidergonj Bazar,
Halishahar Br. ATM
Mymensignh Br. ATM Mouza-Char Ababil,
House # 03, Block - G, Port Connecting
Minar Complex, Holding No: 09, Union-Char Ababil, Raipir, Laxmipur
Road, Halishahar Housing Estate,
Moktijodda Sarani (Choto Bazar), Ward Halishahar, Chittagong
No: 08, Mymensingh Porosuva, Kotwali Fatikchari Br. ATM
Sadar Thana, District: Mymensingh Mir Jahanara Complex, College Road,
Agrabad Br. ATM
Bibirhat, Mouza : North Dhurung,
Jahan Building, 59, Agrabad
BTI Premier Plaza- ATM Thana: Fatikchari, Chittagong
Commercial Area, Chittagong
“bti Premier Plaza”, Holding No: Plot:
Cha 90/A, Pragoti Sarani, Badda Road, Madambibir Hat Br. ATM
Oxygen Moor Br. ATM
Dhaka North City Corporation, Gulshan Madambibir Hat Union, Bhatiary,
405, Kulgao, Oxygen More, Biozid
Thana, Dhaka.. P.S.: Sitakunda, Dist. :Chittagong
Bostami, Chittagong
Shebarhat Br. ATM Khulna Division Bogra, Borogola ATM

Jahanara & Sons Market, Mouza: Raja 288/325, 289/326, Jamil Shopping
Rampur, Union : 7 No Mohammadpur, Khulna Br. ATM Center, Borogola, Rangpur Road, Bogra
Senbagh Thana, Noakhali Haji Hanif Complex (1st floor), 12 & 13,
Khan Jahan Ali Road, Khulna. Baneswar Br. ATM
Teknaf Br. ATM “Alhaj Amjad Hossain Market”,
“Alo Shopping Complex’, Teknaf Sir Iqbal Road Br. ATM Village: Kolahata, Mouza: Shibpur,
Pauroshova, Ward No # 03, Thana: 155, Sir Iqbal Road, Khulna Union: Baneswar, Thana: Potia,
Teknaf, District: Cox’s Bazar (Thanar Moor) District: Rajshahi
Tareque Medical Hospital ATM
Satkhira Br. ATM Rajshahi-ATM-2
“Tareque Memorial Hospital Complex”,
896, Palash Pole (Ground Floor), Uposhahar New Market, Rajshahi
Dhaka-Chittagong old Main Road
Shahid Kajal Sarak (Satkhira Bus Stand), Uposhahar New Market, Holding
(Banshpara), Chhagalniya Thana, Feni
Satkhira Pouroshova, Thana: Satkhira, No: 10, Ward No: 14, Rajshahi City
Coral Reef ATM District: Satkhira Corporation, Boalia Thana, Rajshahi
“Coral Reef Mannan Plaza”, Main
Road, Bazar Ghata, Cox’s Bazar City Jessore Br. ATM
Rajshahi-ATM-3
Corporation, Sadar -Cox’s Bazar Thana, 11, R.N. Road, Thana: Kotwali,
Greater Road, Rajshahi
District: Cox’s Bazar. Dist.: Jessore
Greater Road, Ward No: 13, Rajshahi
Rupdia Br. ATM City Corporation, Boalia Thana, Rajshahi
Momin Road Br. ATM
Bhoumik Super Market, Rupdia Bazar,
“Equity Central”, Holding No: 42-43,
Vill: Zirat, Union: 14 no Narendropur, Rajshahi-ATM-4
Momin Road, Ward No: 32, Chittagong
Jessore Natore Road, Rajshahi
City Corporation, Thana: Kotwali,
Rokeya Bhaban, Holding No: 219,
Chittagong..
Dumuria Br. ATM Natore Road, Ward No: 22, Rajshahi City
Gunabati Br. ATM “R.R. Plaza”, Village: Araji Sajiara, Mouza: Corporation, Boalia Thana, Rajshahi
Gunabati Bazar”, Village: Gunabati, Araji Sajiara, Union: 11 No. Dumuria
Thana: Choddogram, District: Comilla Union, Thana: Dumuria, District: Khulna. Pabna Br. ATM
Khairul Tower, Maowlana Mohammad
Kotwali Br. ATM Kahishpur Jute Mills ATM Ali Road (Narikel Bagan Road), Ward
“Equity Anitri”, Holding No: 32, Hossain Khalishpur Jute Mills Ltd. No: 03 (Shibrampur), Pabna Porosuva,
Shahid Sarwardi Road, Chittagong Khalishpur, Khulna Pabna Sadar Thana, District: Pabna
City Corporation, Kotwali Thana,
Chittagong. Eastern Jute Mills ATM Iswardi Br. ATM
Eastern Jute Mills Ltd. Atra Industrial Holding # 994/930 & 1017, Ishwardi
Sylhet Division Area, Khulna. Porosova, Ishwardi Thana,
District: Pabna
Ragib Rabeya Medical College and Kushtia Br. ATM
Hospital ATM Aneek Tower, 295, Nowab Sirajuddoula

Jalalabad Ragib-Rabeya Medical Road Ward # 03, Pauroshava : Kushtia Rangpur Division
College and Hospital, Road: P.S.: Kushtia Sadar, Dist.: Kushtia
Sunamgonj, Pathantula, Sylhet -3100 Dinajpur Br. ATM
Chuadanga Br. ATM Holding # 880/837, Ganesh Tola Jail
Shahjalal Uposhar “Brothers Tower”, Holding # 0686-06, Road, Dinajpur Municipal Corporation,
Block# D, Main Road, Shahjalal Thana Road, Chuadanga Pauroshava, Ward # 3, Thana: Dinajpur Sadar,
Uposhahar, Sylhet Ward # 03, Thana: Chuadanga Sadar, Dist: Dinajpur
District: Chuadanga
Moulvibazar Br. ATM Rangpur
Jarip Tower, 199/2, Road No: 59,
Central Road (Saifur Rahman Road), Rajshahi Division Shah Murad Complex, RK Road,
Medical Moor, Rangpur
Thana : Moulvibazar, Moulvibazar Chapainawabgonj Br. ATM
Boro Indara More, Chapainawabganj
VIP Tower ATM Barisal Division
VIP Tower, Plot No: 3714, VIP Road Bogra ATM-1
Sylhet, Sylhet City Corporation, Kotwali Mofiz Paglar Moor, Bogra Nazirerpool ATM
Than, Sylhet Holding No: 1367-000, Birsreshta
Naogaon Br. ATM Captain Mohiuddin Jahangir Sarok
Kazirtula ATM Shahid Matiul Isalm Poura Market, (Nazirerpool), Ward No: 19, Barisal City
Mujibur Rahman Complex, Holding No: Naogaon Pourashava, Thana: Naogaon Corporation, Kotwali Thana, Barisal
1469, 1470, 1471, 1472, Kazirtula Main sadar, Dist.: Naogaon
Road, Kotwali Than, Sylhet Sadar Road ATM
Kulaura Br. ATM Rajshahi ATM-1, Laxmipur Holding No: 241, Sadar Road (Opposite
Aziz Rowshon Shopping Center & Holding No: 634, Sher-Sha Road, of Barisal Zila School), Ward No: 10,
Garden City, Kulaura Pourashava, Laxmipur, Rajshahi Barisal City Corporation,
Kulaura Thana, District: Moulvibazar Kotwali Thana, Barisal.
Memories of 21st AGM


Worldwide Correspondents
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DEUTSCHE BANK AG
HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED,THE
JAPAN INTESABCI S.P.A
OKAZAKI SHINKIN BANK, THE
RESONA BANK, LTD
HOKURIKU BANK, LTD.,THE
SHINHAN ASIA LTD.
UBAF UNION BANQUE ARABIES
WELL FARGO BANK

WOORI BANK, TOKYO
JORDAN JORDAN INVESTMENT & FINAN.BK.
DUBAI BANK KENYA LTD
KENYA
CITIBANK N.A. NAIROBI
BANK OF NOVA SCOTIA
BANK SUMITOMO BANKING CO.
BNP PARIBAS
CITIBANK KOREA INC
DAEGU BANK LTD,THE
HSBC BANK,THE
INDUSTRIAL BANK OF KOREA
KOOKMIN BANK
KOREA KOREA DEVELOPMENT BANK, THE
KOREA EXCHANGE BANK
NATIONAL BANK OF PAKISTAN, SEOUL BRANCH KOREA
SHINHAN BANK
SUHYUP BANK (FORMERLY NATIONAL FEDERATION OF FISHERIES COOPERATIVES)
SUMITOMO MITSUI BANKING CORPORATION
WELL FARGO BANK
WOORI BANK
NATIONAL BANK OF KUWAIT
KUWAIT BNP PARIBAS KUWAIT
CITIBANK N.A.
CITIBANK BEIRUT
LEBANON
BANK OF BEIRUT S.A.L.
NORDEA BANK S.A. LUXEMBOURG
BANQUE DE COMMERCE ET DE PLACEMENTS S.A. SUCCURSALE DE LUXEMBOURG
HSBC TRINKAUS UND BURKHARDT (INTERNATIONAL) SA
DANSKE BANK INTERNATIONAL S.A.

COMMERZBANK AG
LATVIA NORDEA BANK FINLAND PLC LATVIA BRANCH
LITHUANIA NORDEA BANK FINLAND PLC LITHUANIA BRANCH
Liechtenstein LGT BANK AG
MEXICO HSBC MEXICO, S.A. INSTITUCION DE BANCA MULTIPLE, GRUPO FINANCIER HSBC
FIMBANK PLC
MALTA
AKBANK T.A.S. (MALTA BRANCH)
MACAU HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED, THE
CITIBANK MAGHREB
MOROCCO
ATTIJARIWAFA BANK (FORMERLY BANQUE COMMERCIALE DU MAROC)
MAURITIUS MAURITIUS COMMERCIAL BANK LTD., THE
BANK OF NOVA SCOTIA
BANK MUAMALAT MALAYSIA BERHAD
BANK MUAMALAT MALAYSIA BERHAD (6175-W)
CITIBANK BERHAD
HSBC BANK MALAYSIA BERHAD,MY
MALAYSIA AM BANK (M) BERHAD
MALAYAN BANKING BERHAD
RHB BANK BERHAD
MIZUHO CORPORATE BANK, LTD., LABUAN BRANCH
ABN AMRO BANK N.V. (FORMELY KNOWN AS FORTIS BANK (NEDERLAND) N.V.)
ABN AMRO BANK N.V.
ABN AMRO BANK N.V.
AKBANK NV
COMMERZBANK AG
NETHERLAND
DEUTSCHE BANK A.G. AMSTERDAM
HOLLANDSCHE BANK-UNIE N.V
ING BANK N.V.
KOREA EXCHANGE BANK, AMSTERDAM BRANCH
YAPI KREDI BANK NEDERLAND N.V.
NEPAL NEPAL BANGLADESH BANK LIMITED
BANK OF NEWZEALAND
CITIBANK NA NEW ZEALAND BRANCH
NEW ZEALAND
HSBC(HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED, THE)
NATIONAL NOMINEES LIMITED
DEN NORSKE BANK
FOKUS BANK, PART OF DANSKE BANK GROUP
NORWAY NORDEA BANK FINLAND PLC
NORDEA BANK NORGE ASA
UNION BANK OF NORWAY
BANK SOHAR
OMAN
BANKMUSCAT SAOG
ASKARIBANK LIMITED
BANKISLAMI PAKISTAN LIMITED
BANK AL HABIB LIMITED.
CITIBANK N.A.
HABIB METROPOLITAN BANK LIMITED
HSBC BANK MIDDLE EAST LIMITED
PAKISTAN MASHREQ BANK
NIB BANK LIMITED
ASKARIBANK LIMITED
PRIME COMMERCIAL BANK LTD
SONERI BANK LIMITED
UNITED BANK LIMITED.
KOREA EXCHANGE BANK
PANAMA
POWSZECHNA KASA OSZCZEDNOSCI BANK POLSKI SA
ASIAN DEVELOPMENT BANK
MIZUHO CORPORATE BANK, LTD., MANILA BRANCH
HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED, THE
PHILLIPINES CITIBANK,N.A., MANILA BRANCH
NORDEA BANK POLSKA S.A.
KOREA EXCHANGE BANK
BANCO ESPIRITO SANTO S.A.
PORTUGAL BANCO ESPIRITO SANTO S.A.
CITIBANK INTERNATIONAL PLC
BANK HANDLOWYW WARSZAWIE SA
BANK POLSKA KASA OPIEKI SA - BANK PEKAO SA
POLAND
DANSKE BANK A/S S.A. ODZIAL W POLSCE
BNP PARIBAS S.A. BRANCH IN POLAND
MASHREQ BANK
COMMERCIAL BANK OF QATAR, LTD.
QATAR NATIONAL BANK
QATAR
UNITED BANK LIMITED, DOHA
HSBC BANK MIDDLE EAST LIMITED
UNICREDIT TIRIAC BANK SA

ROMANIA PIRAEUS BANK ROMANIA
UNICREDIT BANK SRBIJA A.D.
BANK FOR FOREIGN TRADE
COMMERZBANK AG
ZAO CITIBANK, MOSCOW
RUSSIA UNICREDIT BANK ZAO
WOORI BANK MOSCOW
UNICREDIT BANK ZAO
MOSCOW BUSINESS WORLD BANK
SENEGAL CITIBANK N.A.
SAUDI BRITISH BANK
AL RAJHI BANK
BANK AL BILAD
BANQUE SAUDI FRANSI
SAUDI ARABIA
BNP PARIBAS SAUDI ARABIA
EMIRATES NBD BANK PSC
NATIONAL COMMERCIAL BANK, THE
SAUDI HOLLANDI BANK
AXIS BANK LIMITED
ABN AMRO BANK N.V., SINGAPORE
BANK OF AMERICA, N.A. SINGAPORE
BANK OF NOVA SCOTIA
BNP PARIBAS - SINGAPORE BRANCH
CITIBANK N.A.
COMMERZBANK AG
CREDIT LYONNAIS
DBS BANK LTD.
DEUTSCHE BANK AG
HABIB BANK LIMITED
HSBC BANK,THE
ICICI BANK LIMITED
INDIAN OVERSEAS BANK

INDIAN BANK
SINGAPORE INTESA SANPAOLO S.P.A. (FORMER SANPAOLO IMI), SINGAPORE BRANCH, SINGAPORE
KBC BANK NV
KOREA EXCHANGE BANK, SINGAPORE BRANCH
MALAYAN BANKING BERHAD
NATIONAL BANK OF KUWAIT S.A.K., THE
NORDEA BANK FINLAND PLC, SINGAPORE
NATIXIS BANK
SHINHAN BANK
SKANDINAVISKA ENSKILDA BANKEN AB (PUBL)
STATE BANK OF INDIA
UCO BANK
UNICREDIT BANK AG SINGAPORE BRANCH (HYPOVEREINSBANK AG SINGAPORE BRANCH)
WOORI BANK, SINGAPORE
CESKOSLOVENSKA OBCHODNA BANKA, A.S.
SLOVAKIA
CITIBANK EUROPE PLC, POBOCKA ZAHRANICNEJ BANKY
SLOVENIA UNICREDIT BANKA SLOVENIJA D.D.
FIRSTRAND BANK LTD
SOUTH AFRICA
CITIBANK SOUTH AFRICA
BANCO ATLANTICO S.A

ARESBANK, S.A.
BANCO PASTOR S.A.
BANKIA S.A.
BANCO POPULAR ESPANOL, S.A.
CATALUNYA BANC, S.A. (CATALUNYACAIXA)
CAJAMAR CAJA RURAL, SOCIEDAD COOPERATIVA DE CREDITO
CAIXA D'ESTALVIS I PENSIONS DE BARCELONA (LA CAIXA)-CAJA DE AHORROS Y PENSIONES DE BARCELONA
CAJA MEDITERRANEO
BANCO BILBAO VIZCAYA(ARG)S.A
SPAIN
BANCO DE SABADELL S.A
BANCO SANTANDER S.A.
BNP PARIBAS SUCURSHL ENESPANA
BANCO ESPANOL DE CREDITO
CAJA DE AHORROS DE VALENC
SKANDINAVISKA ENSKILDA BANKEN
KBC BANK N.V.
CAJA DE AHORROS DE VALENCIA, CASTELLON Y ALICANTE (BANCAJA)
COMMERZBANK AG
CITIBANK N.A. SRI LANKA
COMMERCIAL BANK OF CEYLON PLC
SRILANKA ICICI BANK LTD
MASHREQ BANK
DANSKE BANK
DEN NORSKE BANK
NORDEA BANK SWEDEN AB
SWEDEN SKANDINAVISKA ENSKILDA BANKEN
NORDEA BANK AB (PUBL)
SVENSKA HADELSBANKEN
SWEDBANK
BANQUE CANTONALE VAUDOISE
BANQUE DE COMMERCE ET DE PLACEMENTS S.A.
BANCA POPOLARE DI SONDRIO (SUISSE)
BANQUE CANTONALE DE GENEVE
BHF BANK (SCHWEIZ) AG
BANCA ALETTI E C. (SUISSE) SA (BANCO POPOLARE GROUP)
COMMERZBANK AG
CREDIT AGRICOLE (SUISSE)SA
CREDIT SUISSE AG
SWITZERLAND CREDIT EUROPE BANK
ATLANTIC FORFAITIERUNGS AG
HABIB BANK AG ZURICH
NORDEA BANK S.A., LUXEMBURG, ZWEIGNIEDERLASSUNG, ZUERICH.
RAIFFEISENBANK A.S.
UNITED BANK AG ZURICH
ZUERCHER KANTONALBANK
UBS AG
UBS AG (HEAD OFFICE, AD
UNION BANCAIRE PRIVEE, GENEVA
BANK OF AMERICA, N.A. TAIPEI
BANK OF NOVA SCOTIA
TAIWAN
CITIBANK N.A.
CITIBANK TAIWAN LIMITED
DBS BANK (TAIWAN) LTD
HSBC BANK,THE
HUA NAN COMMERCIAL BANK, LTD.
KBC BANK NV
KBC BANK NV
KRUNG THAI BANK PUBLIC COMPANY LIMITED
LAND BANK OF TAIWAN
MEGA INTERNATIONAL COMMERCIAL BANK CO., LTD.
SHANGHAI COMMERCIAL AND SAVINGS BANK, LTD., THE
THE BANK OF NEW YORK MELLON, TAIPEI BRANCH
TAISHIN INTERNATIONAL BANK
THE HONGKONG AND SHANGHAI BANKING CORPORATION LTD.
WELL FARGO BANK
MIZUHO CORPORATE BANK, LTD., (FORMERLY THE DAI-ICHI KANGYO BANK, LTD., BANGKOK BRANCH)
CITIBANK N.A.
EXPORT-IMPORT BANK-IMPO
HSBC BANK,THE
ISLAMIC BANK OF THAILAND
THILAND CITIBANK N.A.
MIZUHO BANK, LTD., BANGKOK BRANCH
THANACHART BANK PUBLIC COMPANY LIMITED
KASIKORNBANK PUBLIC COMPANY LIMITED
TMB BANK PUBLIC COMPANY LIMITED
TANZANIA CITIBANK TANZANIA LTD
TUNISIA BANQUE TUNISO-LIBYENNE
TEKSTIL BANKASI A.S.
AKBANK T.A.S.
AKTIF YATIRIM BANKASI A.S.
CITIBANK N.A.

TURKEY ODEABANK A.S.
ICBC TURKEY BANK A.S. (FORMERLY TEKSTIL BANKASI A.S.)
TURKIYE HALK BANKASI A.S. (HEAD OFFICE)
TURKIYE CUMHURIYETI ZIRAAT BANKASI A.S.
TURK EKONOMI BANKASI A.S.
AXIS BANK LIMITED, DIFC BRANCH (REGULATED BY DFSA)
ABU DHABI COMMERCIAL BANK
BANK OF TOKYO-MITSUBISHI UFJ, LTD.,
BNP PARIBAS, ABU DHABI
BNP PARIBAS, DUBAI
CITIBANK N.A.
COMMERCIAL BANK OF DUBAI
DUBAI ISLAMIC BANK
UAE CREDIT EUROPE BANK (DUBAI) LTD
HSBC BANK MIDDLE EAST
MASHREQ BANK PSC
NOOR ISLAMIC BANK
NATIONAL BANK OF UMM AL QAIWAIN PSC.
SMBC DUBAI
UNION NATIONAL BANK
UAE EXCHANGE CENTER
UNITED BANK LTD.

NATIONAL BANK OF FUJAIRAH
ABN AMRO BANK NV
AKBANK NV LONDON BRANCH
BANCA MONTE DEI PASCHI DI SIENA SPA - LONDON BRANCH
BANK MANDIRI (EUROPE) LIMITED
BANK MANDIRI (EUROPE) LTD.
BANK NEGARA INDONESIA (PERSERO) P.T., LONDON BRANCH
BANK OF AMERICA, N.A. LONDON
BANK OF NOVA SCOTIA
BANK OF NOVA SCOTIA
BANCO POPOLARE
BNP PARIBAS FINANCE PLC
BRITISH ARAB COMMERCIAL BANK PLC
CITIBANK N.A.
COMMERZBANK AG
CREDIT AGRICOLE S.A. LONDON BRANCH
DANSKE BANK
FORTIS BANK SA/NV
GULF INTERNATIONAL BANK (UK) LIMITED
HABIBSONS BANK LIMITED
HABIB-UK PLC
UK HSBC BANK PLC
ICICI BANK UK PLC
ING BANK N.V., LONDON BRANCH
ING BHF-BANK AKTIENGESELLS
INTESABCI S.P.A
KBC BANK NV
KEYBANK NATIONAL ASSOCIATION
MASHREQ BANK PSC
NORDEA BANK FINLAND PLC LONDON BRANCH
NORTHERN BANK (PART OF DANSKE BANK GROUP)
NATIONAL BANK OF ABU DHABI
QIB (UK) PLC
SHINHAN BANK EUROPE GMBH
SONALI BANK (UK) LTD
SUISSE CREDIT CAPITAL (2009) LTD.
UNITED NATIONAL BANK
WELLS FARGO BANK, N.A.
WELLS FARGO SECURITIES INTERNATIONAL LIMITED
WOORI BANK, LONDON
ABN AMRO BANK NV
ATLANTIC BANK OF NEW YORK
ABN AMRO CAPITAL USA LLC
BANCA MONTE DEI PASCHI DI SIENA SPA -
BANK OF AMERICA
BANK OF AMERICA, N.A
USA
BANK OF AMERICA, N.A.
BANK OF NEW YORK
BANK OF THE WEST
BANK OF NOVA SCOTIA
BANKERS TRUST COPANY
BNP PARIBAS U.S.A - NEW YORK BRANCH

CATHAY BANK
CITIBANK N.A.
CITY NATIONAL BANK
COMERICA BANK
CREDIT LYONNAIS
EAST-WEST BANK
FIRST TENNESSEE BANK N.A.
FLEET NATIONAL BANK
FRENCH AMERICAN BANKING CO
HABIB AMERICAN BANK LTD
HABIB BANK LIMITED
HSBC BANK
ICICI BANK LIMITED
INTERNATIONAL FINANCE CORPORATION
INTESABCI S.P.A
JPMORGAN BANK CHASE BANK
KBC BANK NV
USA KEB NY FINANCIAL CORP.
KEYBANK
MASHREQ BANK
MERCHANTS BANK OF CALIFORINA
NATIONAL BANK OF PAKISTAN
NATIONAL CITY BANK CLEVELA
NORDEA BANK FINLAND PLC, NEW YORK BRANCH
SHINHAN BANK
STERLING NATIONAL BANK
TD BANK, N.A.
UNITED BANK LTD.
U.S.BANK (FORMERLY FIRST BANK)
WELLS FARGO BANK
WOORI AMERICA BANK, NEW YORK

WOORI BANK, LOS ANGELES
WOORI BANK, NEW YORK
UZBEKISTAN NATIONAL BANK FOR FOREIGN ECONOMIC ACTIVITY OF THE REPUBLIC OF UZBEKISTAN
URUGUAY EXPRINTER (URUGUAY) S.A.
PJSC 'CITIBANK'
UKRAINE UNEX JOINT STOCK BANK
DIAMANT BANK JOINT STOCK BANK
ASIA COMMERCIAL BANK
CITIBANK N.A.
BANK OF TOKYO MITSUBISHI
JOINT STOCK COMMERCIAL BANK FOR FOREIGN TRADE OF VIETNAM
HSBC BANK (VIETNAM) LTD.
JPMORGAN CHASE BANK
KOREA EXCHANGE BANK, HANOI BRANCH
VIETNAM
SHINHAN BANK
THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED, HANOI BRANCH
WOORI BANK, HANOI
WOORIBANK HOCHIMINH
Financial
Statements
FINANCIAL STATEMENTS
Independent Auditor's Report to the Shareholders 260

Consolidated Balance Sheet 262
Consolidated Profit and Loss Account 264
Consolidated Cash Flow Statement 265
Consolidated Statement of Changes in Equity 266
Balance Sheet 267
Profit and Loss Account 269
Cash Flow Statement 270
Statement of Changes in Equity 271
FINANCIAL STATEMENTS OF ISLAMIC BANKING BRANCHES

Balance Sheet 344
FINANCIAL STATEMENTS OF OFF-SHORE BANKING

Balance Sheet 354
FINANCIAL STATEMENTS OF SEBL SUBSIDIARIES

Financial statements
Financial Statements of Southeast Bank Capital Services Ltd. 364

Financial Statements of Southeast Financial Services (UK) Ltd 378
Financial Statements of Southeast Financial Services (Australia) Pty Ltd 391
Financial Statements of Southeast Exchange Company (South Africa) Pty Ltd 399
Independent auditor’s report

to the shareholders of Southeast Bank Limited
Report on the financial statements
We have audited the accompanying 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 balance sheet
and the separate balance sheet as at 31 December 2016, and the consolidated and separate profit and loss accounts, consolidated
and separate statements of changes in equity and consolidated and separate cash flow statements for the year then ended, and a
summary of significant accounting policies and other explanatory information.
Management’s responsibility for the financial statements and internal controls
Management is responsible for the preparation of consolidated financial statements of the Group and also separate financial
statements of the Bank that give a true and fair view in accordance with Bangladesh Financial Reporting Standards as explained in
note 2 and for such internal control as management determines is necessary to enable the preparation of consolidated financial
statements of the Group and also separate financial statements of the Bank that are free from material misstatement, whether due
to fraud or error. The Bank Company Act, 1991 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.
Auditor's responsibility
Our responsibility is to express an opinion on these consolidated financial statements of the Group and the separate financial
statements of the Bank based on our audit. We conducted our audit in accordance with Bangladesh Standards on Auditing. Those
standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the consolidated financial statements of the Group and separate financial statements of the Bank are free from material
misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial
statements of the Group and separate financial statements of the Bank. The procedures selected depend on our judgment,
including the assessment of the risks of material misstatement of the consolidated financial statements of the Group and separate
financial statements of the Bank, whether due to fraud or error. In making those risk assessments, we consider internal control
relevant to the entity’s preparation of consolidated financial statements of the Group and separate financial statements of the
Bank that give a true and fair view in order to design audit procedures that are appropriate in the circumstances. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the consolidated financial statements of the Group and also separate
financial statements of the Bank.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the consolidated financial statements of the Group and also separate financial statements of the Bank give a true
and fair view of the consolidated financial position of the Group and the separate financial position of the Bank as at 31 December
2016, and of its consolidated and separate financial performance and its consolidated and separate cash flows for the year then
ended in accordance with Bangladesh Financial Reporting Standards as explained in note 2.
Report on other legal and regulatory requirements
In accordance with the Companies Act 1994, Securities and Exchange Rules 1987, the Bank Company Act, 1991 and the rules and
regulations issued by Bangladesh Bank, we also report the following:
a) we have obtained all the information and explanation which to the best of our knowledge and belief were necessary for the
purpose of our audit and made due verification thereof;
b) 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 anti-fraud internal controls
and instances of fraud and forgeries as stated under the Management’s Responsibility for the Financial Statements and
Internal Control:
i) internal audit, internal control and risk management arrangements of the Group and the Bank as disclosed in Notes 2.2
(i,ii, and iii) of the financial statements appeared to be materially adequate; and
ii) 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 Bank and its related entities other than matters
disclosed in these financial statements;
c) financial statements of all subsidiaries of the Bank have been audited by other auditors and have been properly reflected in
the consolidated financial statements;
d) in our opinion, proper books of account as required by law have been kept by the Group and the Bank so far as it appeared
from our examination of those books;
e) the consolidated balance sheet and consolidated profit and loss account of the Group and the separate balance sheet and
separate profit and loss account of the Bank dealt with by the report are in agreement with the books of account;
f) the expenditure incurred was for the purposes of the Bank’s business;
g) 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 with related guidance issued by Bangladesh
Bank;
h) adequate provisions have been made for advances which are, in our opinion, doubtful of recovery;
i) the records and statements submitted by the branches have been properly maintained and consolidated in the financial
statements;
j) the information and explanation required by us have been received and found satisfactory;
k) we have reviewed over 80% of the risk weighted assets of the Bank and we have spent around 5,200 person hours for the
audit of the books and accounts of the Bank; and
Other matter
The consolidated financial statements of the Group and also separate financial statements of the Bank as at and for the year ended
31 December 2015 were audited by another auditor who expressed an unmodified opinion on those statements on 2 March 2016.
Rahman Rahman Huq

Dhaka, 08 April 2017
Southeast Bank Limited and its subsidiaries

Consolidated Balance Sheet
As at 31 December 2016
2016 2015
Note
Taka Taka
PROPERTY AND ASSETS

Cash 4
In hand (including foreign currencies) 2,432,620,307 1,903,292,780
Balance with Bangladesh Bank and its agent banks
(including foreign currencies) 15,402,827,761 14,093,697,688
17,835,448,068 15,996,990,468
Balance with other banks and financial institutions 5
In Bangladesh 2,860,092,475 2,187,972,750
Outside Bangladesh 1,185,128,939 1,203,350,315
4,045,221,414 3,391,323,065
Money at call and on short notice 7 4,271,344,100 923,451,500
Investments 8
Government 54,299,803,894 52,620,785,540
Others 7,431,830,566 6,208,480,661
61,731,634,460 58,829,266,201
Loans and advances/investments 10
Loans, cash credit, overdrafts etc./investments 182,661,818,983 161,556,322,321
Bills purchased and discounted 9,203,770,254 7,322,136,224
191,865,589,237 168,878,458,545
Fixed assets including premises, furniture and fixtures 12 8,947,162,556 7,885,226,411
Other assets 14 3,101,610,244 4,813,314,263
Non-banking assets - -
Total assets 291,798,010,079 260,718,030,453
LIABILITIES AND CAPITAL
Liabilities
Borrowings from other banks, financial institutions and agents 16
Subordinated bond 8,000,000,000 3,000,000,000
Other borrowings 7,371,635,082 4,556,919,852
15,371,635,082 7,556,919,852
Deposits and other accounts 18
Current/Al-wadeeah current accounts and other accounts 30,285,059,627 23,179,887,835
Bills payable 6,548,856,941 2,127,206,788
Savings bank/Mudaraba savings bank deposits 19,700,582,409 18,419,861,332
Fixed deposits/Mudaraba fixed deposits 173,438,929,873 166,704,137,174
229,973,428,850 210,431,093,129
Other liabilities 20 19,919,384,323 15,513,931,810
Total liabilities 265,264,448,255 233,501,944,791
Capital/shareholders' equity
Paid up capital 22.2 9,169,501,760 9,169,501,760
Statutory reserve 23 9,170,000,000 8,897,307,905
Revaluation reserve 24 4,763,888,676 5,968,128,051
Other reserves 25 247,650,000 247,650,000
Foreign currency translation reserve 26 (24,449,246) (27,870,748)
Retained earnings 27 3,196,967,474 2,951,940,410
Total shareholders' equity 26,523,558,664 27,206,657,378
Non-controlling interest 29 10,003,160 9,428,284
Total liabilities and shareholders' equity 291,798,010,079 260,718,030,453

Consolidated Balance Sheet
2016 2015
Note
Taka Taka
OFF-BALANCE SHEET ITEMS
Contingent liabilities
Acceptances and endorsements 30.1 43,813,553,641 36,223,420,210
Letters of guarantee 30.2 15,154,116,600 13,395,240,916
Irrevocable letters of credit 30.3 32,881,303,677 24,992,379,957
Bills for collection 30.4 17,830,304,866 12,812,744,729
Other contingent liabilities 30.5 1,474,684,000 1,098,459,000
Total contingent liabilities 111,153,962,784 88,522,244,812
Other commitments
Documentary credits and short term trade-related transactions - -
Forward assets purchased and forward deposits placed 2,756,664,000 -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -
Total other commitments 2,756,664,000 -
Total off-balance sheet items including contingent liabilities 113,910,626,784 88,522,244,812
The annexed notes 1 to 69 form an integral part of these financial statements.
Chairman Director Director Managing Director (CC) Financial statements
As per our report of same date.
Dhaka,
Date: 08 April 2017 Auditor
Rahman Rahman Huq
Chartered Accountants

Consolidated Profit and Loss Account
For the year ended 31 December 2016
2016 2015
Note
Taka Taka
Interest income/profit on investments 32 16,972,326,566 17,794,795,961

Interest paid/profit shared on deposits and borrowings etc. 34 (12,765,116,463) (14,656,338,002)
Net interest income/net profit on investments 4,207,210,103 3,138,457,959
Investment income 36 5,079,606,748 5,158,537,123
Commission, exchange and brokerage 38 2,903,034,957 2,759,457,588
Other operating income 40 662,602,892 547,933,577
8,645,244,597 8,465,928,288
Total operating income (A) 12,852,454,700 11,604,386,247
Salaries and allowances 42 1,741,464,516 1,423,681,923
Rent, taxes, insurance, electricity, etc. 44 801,036,278 658,260,750
Legal expenses 599,813 1,491,730
Postage, stamp, telecommunication, etc. 46 166,450,976 147,329,178
Stationery, printing, advertisements, etc. 48 132,234,398 112,623,969
Managing Director's salary and fees 50 11,975,000 9,450,000
Directors' fees 51 2,912,276 2,650,734
Auditors' fees 53 1,599,917 1,040,000
Depreciation and repair 54 403,602,733 339,176,671
Other expenses 56 1,087,356,457 874,406,519
Total operating expenses (B) 4,349,232,364 3,570,111,474
Profit before provision (C=A-B) 8,503,222,336 8,034,274,773
Provision for loans and advances/investments 21.1
General provision 890,000,000 205,278,770
Specific provision 2,360,990,098 2,039,766,952
3,250,990,098 2,245,045,722
Provision for diminution in value of investments 58 (403,600,751) 269,481,899
Other provisions 21.5 365,235,000 2,263,106
Total provision (D) 3,212,624,347 2,516,790,727
Total profit before taxation (E=C-D) 5,290,597,989 5,517,484,046
Provision for taxation 60
Current 2,790,553,126 2,308,068,504
Deferred 64,971,265 140,000,000
2,855,524,391 2,448,068,504
Net profit after taxation 2,435,073,598 3,069,415,542
Net profit after taxation attributable to:
Equity holders' of the Bank 2,434,965,442 3,070,132,933
Non-controlling interest 108,156 (717,391)
Appropriations
Statutory reserve 23 272,692,095 1,104,495,904
272,692,095 1,104,495,904
Retained surplus during the year 2,162,381,503 1,964,919,638
Earnings per share (par value Taka 10) 66 2.66 3.35
Chairman Director Director Managing Director (CC)

Auditor
Dhaka, Rahman Rahman Huq
Date: 08 April 2017 Chartered Accountants

Consolidated Cash Flow Statement
2016 2015
Note
Taka Taka
A. Cash flows from operating activities:

Interest receipts in cash 21,465,956,048 22,649,008,849
Interest payments (13,436,169,366) (15,065,727,470)
Dividend receipts 206,501,017 169,586,070
Fees and commission receipts in cash 38 2,903,034,957 2,759,457,588
Recoveries on loans previously written-off 72,709,902 174,604,278
Cash payments to employees (1,753,439,516) (1,433,131,923)
Cash payments to suppliers (680,680,071) (410,177,004)
Income taxes paid (1,857,082,933) (2,544,706,496)
Receipts from other operating activities 62 658,098,860 547,079,920
Payments for other operating activities 64 (2,171,105,188) (1,847,880,920)
Operating profit before changes in operating assets and liabilities (i) 5,407,823,710 4,998,112,892
Increase (decrease) in operating assets and liabilities
Sale of trading securities 1,890,405,541 705,788,371
Purchase of trading securities (3,044,094,011) (420,588,600)
Loans and advances to customers (24,196,787,280) (21,807,652,336)
Other assets 2,181,098,442 (1,779,218,427)
Deposits from other banks 7,814,715,230 (258,998,658)
Deposits from customers 20,213,388,624 21,367,938,895
Other liabilities 1,261,627,976 729,018,180
Cash generated from (used in) operating assets and liabilities (ii) 6,120,354,522 (1,463,712,575)
Net cash from operating activities (A=i+ii) 11,528,178,232 3,534,400,317
B. Cash flows from investing activities:
Proceeds from sale of securities 53,629,810,359 51,230,852,388
Payments for purchase of securities (56,304,115,364) (57,543,612,089)
Purchase of fixed assets (1,359,221,862) (245,198,107)
Sale of fixed assets 5,141,124 2,516,411
Net cash used in investing activities (B) (4,028,385,743) (6,555,441,397)
C. Cash flows from financing activities:
Dividends paid (1,375,425,264) (1,375,425,264)
Payment against lease obligation (8,388,117) (15,486,885)

Net cash used in financing activities (C) (1,383,813,381) (1,390,912,149)
D. Net increase (decrease) in cash and cash equivalents (A+B+C) 6,115,979,108 (4,411,953,229)
E. Effects of exchange rate changes on cash and cash equivalents 25,257,242 979,724
F. Cash and cash equivalents at beginning of the period 21,006,750,533 25,417,724,038
G. Cash and cash equivalents at end of the period (D+E+F) 27,147,986,883 21,006,750,533
Cash and cash equivalents at end of the period represents
Cash in hand (including foreign currencies) 4 2,432,620,307 1,903,292,780
(including foreign currencies) 4 15,402,827,761 14,093,697,688
Balance with other banks and financial institutions 5 4,045,221,414 3,391,323,065
Treasury bills 9.1.1 991,930,001 689,598,000
Prize bond 9.1.1 4,043,300 5,387,500
27,147,986,883 21,006,750,533
266

Consolidated Statement of Changes in Equity
Non-
Paid up Statutory Revaluation Other Translation Retained Total equity
Total controlling
Particulars capital reserve reserve reserves reserve earnings of the Group
interest
Taka Taka Taka Taka Taka Taka Taka Taka Taka
Balance as at 1 January 2016 9,169,501,760 8,897,307,905 5,968,128,051 247,650,000 (27,870,748) 2,951,940,410 27,206,657,378 9,428,284 27,216,085,662
Changes in accounting policy/ Prior year adjustments - - - - - (2,662,876) (2,662,876) 466,720 (2,196,156)
Restated balance 9,169,501,760 8,897,307,905 5,968,128,051 247,650,000 (27,870,748) 2,949,277,534 27,203,994,502 9,895,004 27,213,889,506
Surplus/deficit on account of revaluation of properties - - - - - - - - -

Surplus/deficit on account of revaluation of investments - - (1,204,239,375) - - - (1,204,239,375) - (1,204,239,375)
Currency translation differences - - - - 3,421,502 841,857 4,263,359 - 4,263,359
Net gains and losses not recognized in
the income statement - - (1,204,239,375) - 3,421,502 841,857 (1,199,976,016) - (1,199,976,016)
Net profit for the year - - - - 2,434,965,442 2,434,965,442 108,156 2,435,073,598

Cash dividend - - - - - (1,375,425,264) (1,375,425,264) - (1,375,425,264)
Issue of share capital/ Bonus share - - - - - - - - -
Appropriation made during the year
Statutory reserve - 272,692,095 - - - (272,692,095) - - -
Transfer to SEBL Foundation - - - - - (300,000,000) (300,000,000) - (300,000,000)
Transfer to Employees Welfare Fund - - - - - (200,000,000) (200,000,000) - (200,000,000)
Transfer to Green Award Trust - - - - - (40,000,000) (40,000,000) - (40,000,000)
Balance as at 31 December 2016 9,169,501,760 9,170,000,000 4,763,888,676 247,650,000 (24,449,246) 3,196,967,474 26,523,558,664 10,003,160 26,533,561,824
Balance as at 31 December 2015 9,169,501,760 8,897,307,905 5,968,128,051 247,650,000 (27,870,748) 2,951,940,410 27,206,657,378 9,428,284 27,216,085,662

Balance Sheet
2016 2015
Note
Taka Taka
PROPERTY AND ASSETS

Cash 4.1
In hand (including foreign currencies) 2,428,412,898 1,903,292,780
(including foreign currencies) 15,402,827,761 14,093,697,688
17,831,240,659 15,996,990,468
In Bangladesh 2,860,092,475 2,187,972,750
3,978,710,829 3,336,994,111
Investments 9
Government 54,299,803,894 52,620,785,540
Others 5,155,205,613 4,267,629,032
59,455,009,507 56,888,414,572
Loans and advances/investments 11
Loans, cash credit, overdrafts etc./investments 180,161,187,214 162,056,722,487
Bills purchased and discounted 9,203,770,254 7,322,136,224
189,364,957,468 169,378,858,711
Fixed assets including premises, furniture and fixtures 13 8,613,686,700 7,751,078,875
Other assets 15 8,478,052,796 5,977,253,927
Non - banking assets - -
Total assets 291,993,002,059 260,253,042,164

Liabilities
Borrowings from other banks, financial institutions and agents 17
Other borrowings 7,363,947,263 4,519,780,424
15,363,947,263 7,519,780,424
Bills payable 6,548,856,941 2,127,206,788

230,533,702,113 210,435,774,704
Paid up capital 22.2 9,169,501,760 9,169,501,760
Revaluation reserve 24 4,763,888,676 5,968,128,051
Other reserve 25 247,650,000 247,650,000
Total shareholders' equity 26,522,864,631 27,224,915,051
Total liabilities and shareholders' equity 291,993,002,059 260,253,042,164

Balance Sheet
2016 2015
Note
Taka Taka
Acceptances and endorsements 30.1 43,813,553,641 36,223,420,210
Letters of guarantee 30.2 15,154,116,600 13,395,240,916
Irrevocable letters of credit 30.3 32,881,303,677 24,992,379,957
Bills for collection 30.4 17,830,304,866 12,812,744,729
Other contingent liabilities 30.5 1,474,684,000 1,098,459,000
Total contingent liabilities 111,153,962,784 88,522,244,812
Other commitments
Documentary credits and short term trade-related transactions - -
Forward assets purchased and forward deposits placed 2,756,664,000 -
Undrawn note issuance and revolving underwriting facilities - -
Undrawn formal standby facilities, credit lines and other commitments - -
Total other commitments 2,756,664,000 -
Total off-balance sheet items including contingent liabilities 113,910,626,784 88,522,244,812
Dhaka,
Date: 08 April 2017 Auditor
Rahman Rahman Huq

Profit and Loss Account
2016 2015
Note
Taka Taka
Interest income/profit on investments 33 16,988,878,395 17,918,296,225

Interest paid/profit shared on deposits and borrowings etc. 35 (12,785,664,559) (14,652,724,337)
Net interest income/net profit on investments 4,203,213,836 3,265,571,888
Investment income 37 5,014,416,110 5,125,174,462
Commission, exchange and brokerage 39 2,847,697,916 2,724,003,399
8,492,725,646 8,367,744,361
Total operating income (A) 12,695,939,482 11,633,316,249
Salaries and allowances 43 1,720,787,663 1,399,383,806
Rent, taxes, insurance, electricity, etc. 45 781,507,962 644,286,649
Legal expenses 583,977 1,283,794
Postage, stamp, telecommunication, etc. 47 165,740,473 146,538,853
Stationery, printing, advertisements, etc. 49 130,657,839 111,489,118
Managing Director's salary and fees 50 11,975,000 9,450,000
Directors' fees 52 2,697,276 2,610,734
Auditors' fees 1,000,000 1,000,000
Depreciation and repair of bank's assets 55 372,736,739 321,444,898
Other expenses 57 1,010,435,457 951,884,557
Total operating expenses (B) 4,198,122,386 3,589,372,409
Profit before provision (C=A-B) 8,497,817,096 8,043,943,840
Provision for loans and advances/investments 21.1
General provision 890,000,000 205,278,770
Specific provision 2,360,990,098 2,039,766,952
3,250,990,098 2,245,045,722
Provision for diminution in value of investments 59 (364,779,225) 274,155,492
Other provisions 21.5 365,235,000 2,263,106
Total provision (D) 3,251,445,873 2,521,464,320
Total profit before taxation (C-D) 5,246,371,223 5,522,479,520
Provision for taxation 61
Current 2,765,000,000 2,300,000,000
Deferred 65,000,000 140,000,000
2,830,000,000 2,440,000,000
Appropriations
Statutory reserve 23 272,692,095 1,104,495,904
272,692,095 1,104,495,904
Retained surplus during the year 2,143,679,128 1,977,983,616

Earnings per share (par value Taka 10) 67 2.64 3.36

Auditor
Dhaka, Rahman Rahman Huq
Date: 08 April 2017

Cash Flow Statement
2016 2015
Note
Taka Taka
A. Cash flows from operating activities:

Interest receipts in cash 21,482,507,877 22,772,509,113
Interest payment (13,377,940,965) (15,062,113,805)
Dividend receipts 171,780,691 131,633,489
Fees and commission receipts in cash 39 2,847,697,916 2,724,003,399
Recoveries on Loans previously written-off 72,709,902 174,604,278
Cash payments to employees (1,732,762,663) (1,408,833,806)
Cash payments to suppliers (679,103,512) (408,742,152)
Income taxes paid (1,847,199,924) (2,535,875,626)
Receipts from other operating activities 63 626,107,588 517,712,843
Payments for other operating activities 65 (2,134,111,013) (1,820,501,267)
Operating profit before changes in operating assets and liabilities (i) 5,429,685,897 5,084,396,466
Increase (decrease) in operating assets and liabilities
Sale of trading securities 1,717,610,078 265,378,290
Purchase of trading securities (2,542,420,203) (322,445,392)
Loans and advances to customers (21,195,755,345) (21,422,307,226)
Other assets (1,971,677,448) (1,798,912,238)
Deposits from other banks 7,844,166,839 (231,521,530)
Deposits from customers 20,768,980,312 21,372,903,220
Other liabilities 1,256,507,386 580,771,990
Cash generated from (used in) operating assets and liabilities (ii) 5,877,411,619 (1,556,132,886)
Net cash from operating activities (A=i+ii) 11,307,097,516 3,528,263,580
B. Cash flows from investing activities:
Proceeds from sale of securities 53,629,810,359 51,230,852,388
Payments for purchase of securities (56,304,115,364) (57,543,612,089)
Purchase of fixed assets (1,129,882,695) (246,747,420)
Sale of fixed assets 4,942,879 2,516,411
Net cash used in investing activities (B) (3,799,244,821) (6,556,990,710)
C. Cash flows from financing activities:
Dividends paid (1,375,425,264) (1,375,425,264)
Payment against lease obligation (8,388,117) (15,486,885)
Net cash used in financing activities (C) (1,383,813,381) (1,390,912,149)
D. Net increase (decrease) in cash and cash equivalents (A+B+C) 6,124,039,314 (4,419,639,279)
E. Effects of exchange rate changes on cash and cash equivalents 807,996 945,864
F. Cash and cash equivalents at beginning of the period 20,952,421,579 25,371,114,994
G. Cash and cash equivalents at end of the period (D+E+F) 27,077,268,889 20,952,421,579
Cash and cash equivalents at end of the period represents
Cash in hand (including foreign currencies) 4.1 2,428,412,898 1,903,292,780
(including foreign currencies) 4.1 15,402,827,761 14,093,697,688
Balance with other banks and financial institutions 6 3,978,710,829 3,336,994,111
Treasury bills 9.1.1 991,930,001 689,598,000
Prize bond 9.1.1 4,043,300 5,387,500
27,077,268,889 20,952,421,579
Statement of Changes in Equity
Statutory Revaluation Retained

Paid up capital Other reserves Total
Particulars reserve reserve earnings
Taka Taka Taka Taka Taka Taka
Balance as at 1 January 2016 9,169,501,760 8,897,307,905 5,968,128,051 247,650,000 2,942,327,335 27,224,915,051
Changes in accounting policy/ prior year adjustments - - - - 435,000 435,000
Restated balance 9,169,501,760 8,897,307,905 5,968,128,051 247,650,000 2,942,762,335 27,225,350,051
Surplus/deficit on account of revaluation of properties - - - - - -
Surplus/deficit on account of revaluation of investments - - (1,204,239,375) - - (1,204,239,375)
Currency translation differences - - - - 807,996 807,996
Net gains and losses not recognized in the income statement - - (1,204,239,375) - 807,996 (1,203,431,379)
Net profit for the year - - - - 2,416,371,223 2,416,371,223
Cash dividend - - - - (1,375,425,264) (1,375,425,264)
Issue of share capital/ Bonus share - - - - - -
Appropriation made during the year
Statutory reserve - 272,692,095 - - (272,692,095) -
Transfer to SEBL Foundation - - - - (300,000,000) (300,000,000)
Transfer to Employees Welfare Fund - - - - (200,000,000) (200,000,000)
Transfer to Green Award Trust - - - - (40,000,000) (40,000,000)
Balance as at 31 December 2016 9,169,501,760 9,170,000,000 4,763,888,676 247,650,000 3,171,824,195 26,522,864,631
Balance as at 31 December 2015 9,169,501,760 8,897,307,905 5,968,128,051 247,650,000 2,942,327,335 27,224,915,051
271
Southeast Bank Limited and its Subsidiaries

Notes to the Financial Statements
As at and for the year ended 31 December 2016
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, 4, 6 & 16), Dhaka-1000. The consolidated financial statements of
the Bank as at and for the year ended 31 December 2016 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 128 (2015: 122) branches, with no overseas branch as on 31 December 2016. Out of 128 branches
5 (2015: 5) branches of Islamic banking, the rest 123 (2015: 117) branches run on commercial conventional
basis, of which 15 (2015: 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 up to 2013), BFRSs 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
(2015: 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 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 is 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 the Company is certified by SolTax Pty Ltd. The
financial statements including accountant's report of this subsidiary is attached in Appendix C.
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 H Tayob and
Co. The financial statements of this Company is 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 Company Act, 1991 (amended up to 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 provi-
sions of the FRA. Hence, 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 2016 have been prepared in accor-
dance with Bangladesh Financial Reporting Standards (BFRSs) and the requirements of the Bank Company Act,
1991, the rules and regulations issued by Bangladesh Bank (BB), the Companies Act, 1994, the Securities and
Exchange Rules, 1987. In case any requirement of the Bank Company Act, 1991 and provisions and circulars
issued by BB differ with those of BFRSs, the requirements of the Bank Company Act, 1991 and provisions and
circulars issued by BB shall prevail. Material departures from the requirements of BFRSs are as follows:
i) Investment in shares and Securities
BFRS: As per requirements of BAS 39 investment in shares and securities generally falls either under “at fair
value through profit and loss account” or under “available for sale” where any change in the fair value (as mea-
sured in accordance with BFRS 13) at the year-end is taken to profit and loss account or revaluation reserve
respectively.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 investments in quoted shares and unquot-
ed 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

BFRS: As per requirement of BAS 39 where securities; i.e. T-Bills and T-Bonds will fall under the category of Held
for Trading (HFT), any change in the fair value of HFT assets is recognized through profit and loss account.
Securities; i.e. T-bills designated as Held to Maturity (HTM) are measured at amortized cost method and interest
income is recognized through the profit and loss account.
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
BFRS: As per BAS 39 an entity should start the impairment assessment by considering whether objective
evidence of impairment exists for financial assets that are individually significant. For financial assets are not
individually significant, the assessment can be performed on an individual or collective (portfolio) basis.
Bangladesh Bank: As per 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 BAS 39.
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
BFRS: Loans and advances to customers are generally classified as 'loans and receivables' as per BAS 39 and
interest income is recognized through effective interest rate method over the term of the loan. Once a loan is
impaired, interest income is recognized in profit and loss account on the same basis based on revised carrying
amount.
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
BFRS: As per BAS 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 categorize, recognize, measure and present financial instruments
differently from those prescribed in BAS 39. As such some disclosure and presentation requirements of BFRS
7 and BAS 32 cannot be made in the accounts.
vii) Repo transactions
BFRS: 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.
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
BFRS: As per BAS 39, 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 terms 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 present value of any expected
payment when a payment under the guarantee has become probable. Financial guarantees are 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
BFRS: Cash and cash equivalent items should be reported as cash item as per BAS 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.
x) Non-banking assets
BFRS: No indication of non-banking asset is found in any BFRS.
Bangladesh Bank: As per BRPD 14, there must exist a face item named non-banking assets.
xi) Cash flow statement
BFRS: Cash flow statement can be prepared using either in direct method or in indirect method. The presen-
tation 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)
BFRS: Balance with Bangladesh Bank should be treated as other asset as it is not available for use in day to day
operations as per BAS 7.
Bangladesh Bank: Balance with Bangladesh Bank is treated as cash and cash equivalents.
xiii) Presentation of intangible asset
BFRS: Intangible asset must be identified and recognized, and the disclosure must be given as per BAS 38.
Bangladesh Bank: There is no requirement for regulation of intangible assets in BRPD 14.
xiv) Off-balance sheet items
BFRS: There is no concept of off-balance sheet items in any BFRS; 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
BFRS: 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
BFRS: Loans and advances should be presented net of provisions.
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
BFRS: As per BAS 1, an entity shall not offset assets and liabilities or income and expenses, unless required or
permitted by any BFRS. Again recovery of written off loans should be charged to profit & loss account as per
BAS 18.
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 BFRSs)
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.
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 risk 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, every 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.
Reports on Risk Management (RRM) 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
RRM.
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 the 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 2016, 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 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 BFRSs 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 ending 31 December 2017 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 2016 to 31 December 2016.
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.
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) Limited, 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 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
Unquoted shares At cost or net book value of the last audited balance
sheet whichever is lower
Quoted shares At cost or market value whichever is lower at balance
sheet date
Details are shown in notes 8 and 9.
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 and BRPD circular No. 16 of 18
November 2014. 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 2%
Consumer financing 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' 2.5%-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.
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
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 BAS 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.
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 BAS-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.
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, 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.
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
In the context of Banking and Finance 'Risk' has always been at the heart of banking. As a consequence, it has
become more important for banks to manage effectively the various types of risk they confront, including
market, credit, liquidity, operations, and information technology risk.
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 the 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 sanction of 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
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 policies 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
counterparts; the treasury back office is engaged in transfer of funds and passing of the transaction entries
in the books of accounts, and the mid office is responsible for verification of the deals. All foreign exchange
transactions 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 of these risks is 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. Money laundering
plays a fundamental role in facilitating the ambitions of the drug trafficker, the terrorist, the organized criminal,
the insider dealer, the tax evader as well as many others who need to avoid the attention from the authorities
that sudden wealth brings from illegal activities. 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.
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 128 Branches across the country. The Core Banking Software (CBS) has further been upgraded to its
latest release to enhance existing features and functionalities and secure online banking transaction. The Bank
is offering 24/7 banking services through establishing country wide alternate delivery channels, like ATM and
Mobile Financial Service (MFS). It has also introduced Internet Banking service. For customer convenience,
the Bank is collecting utility bills of DPDC, DESCO, WASA, Titas Gas and BTCL, PDB and Student Tuition Fees
of North-South, BRAC and Asia Pacific University through its alternate delivery channels other than over the
counter of its online Branches. Two Factor Authentication System (2-FA) has been introduced for doing inter-
bank fund transfer or to pay utility bills/student tuition fees through Internet Banking system. 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. Data replication and synchronization
between DC (Data Center) and DRS (Disaster Recovery Site) has been established through two dark fiber
optic cables to ensure availability of data / information. The Bank has also deployed Web Gateway and Web
Application Firewall to further strengthen its system infrastructure. This will secure its internal network and
server system by way of giving protection of information that flows to and from the internet.
The Bank has reviewed and taken instant steps to procure and deploy industry leading IT security solutions to
plug off security gaps. Bank’s ICT Security Policy has been revised according to the guideline on ICT Security
for Banks and NBFIs of Bangladesh Bank which was published in October 2015 to cope with evolving changes
in the ICT environment. The Business Continuity Plan (BCP) and Disaster Recovery Plan (DRP) and ICT Risk
Management Policy have also been revised. Gradual implementation of the different policies is being carried
out. The network connectivity of the SWIFT payment channel has been reviewed and restructured to ensure
security and minimize operational risks. As part of building awareness on ICT Security and Risk among the
employees of the Bank, regular training program is being arranged.
3.20.7 Environmental Risk Management (ERM)
Environmental Risk is a facilitating element of credit risk arising from environmental issues and applicable across
all financing transactions undertaken by the Bank. The responsibilities of Credit Risk Management functions
are: i) to be aware of environmental issues confronting the various sectors, ii) to review the completed due-
diligence checklist and the environmental risk rating, iii) to integrate environmental risk considerations into the
credit risk assessment and iv) to specify financing conditions/covenants , if any, are required.
Environmental risk is assessed by Environmental Due Diligence (EDD) Checklists. It is a set of questionnaire
provided by Bangladesh Bank. There are eleven checklists, one for general purpose and ten others for ten
specific sectors for environmental risk rating. For a specific sector both General EDD and Specific EDD checklists
are applicable and for other than these specific sectors only General EDD checklist is applicable to determine
the environmental risk rating (EnvRR). The EnvRR can be High, Moderate or Low depending on the borrower’s
business activity and the vulnerability of the location of the business activity.
3.21 Compliance of Bangladesh Financial Reporting Standards (BFRSs)
Name of the standards Ref. Status

First-time Adoption of Bangladesh Financial Reporting Standards BFRS-1 Not applicable
Share-based Payment BFRS-2 Not applicable
Business Combinations BFRS-3 Applied
Insurance Contracts BFRS-4 Not applicable
Non-current Assets Held for Sale and Discontinued Operations BFRS-5 Not applicable
Exploration for and Evaluation of Mineral Resources BFRS-6 Not applicable
Financial Instruments: Disclosures BFRS-7 * Applied
Operating Segments BFRS-8 ** Applied
Consolidated Financial Statements BFRS-10 Applied
Joint Arrangements BFRS-11 Not applicable
Disclosure of Interests in other Entities BFRS-12 Applied
Fair Value Measurement BFRS-13 * Applied
Regulatory Deferral Accounts BFRS-14 Not applicable
Presentation of Financial Statements BAS-1 * Applied
Inventories BAS-2 Not Applicable
Statement of Cash Flows BAS-7 * Applied
Accounting Policies, Changes in Accounting Estimates and Errors BAS-8 Applied
Events after the Reporting Period BAS-10 Applied
Construction Contracts BAS-11 Not Applicable
Income Taxes BAS-12 Applied
Property, Plant and Equipment BAS-16 Applied
Leases BAS-17 Applied
Revenue BAS-18 Applied
Employee Benefits BAS-19 Applied
Accounting for Government Grants and Disclosure of
BAS-20 Not Applicable
Government Assistance
The Effects of Changes in Foreign Exchange Rates BAS-21 Applied
Borrowing Costs BAS-23 Applied
Related Party Disclosures BAS-24 Applied
Accounting and Reporting by Retirement Benefit Plans BAS-26 Not Applicable
Separate Financial Statements BAS-27 Applied
Investments in Associates BAS-28 Not Applicable
Interests in Joint Ventures BAS-31 Not Applicable
Financial Instruments: Presentation BAS-32 * Applied
Earnings per Share BAS-33 Applied
Interim Financial Reporting BAS-34 Applied
Impairment of Assets BAS-36 Applied
Provisions, Contingent Liabilities and Contingent Assets BAS-37 * Applied
Intangible Assets BAS-38 * Applied
Financial Instruments: Recognition and Measurement BAS-39 * Applied
Investment property BAS-40 Not Applicable
Agriculture BAS-41 Not Applicable
* Subject to departure described in note 2.1
** Subject to departure described in note 3.25
New standards:
The Institute of Chartered Accountants of Bangladesh (ICAB) has adopted following new standards during
the year 2015-2016. All previously adopted reporting standards are consistently applied by the Bank to the
extent relevant for the Bank.
New standards Summary of the requirements Possible impact on financia
BFRS 9 Financial BFRS 9 replaces the existing guidance in The Bank is assessing the
Instruments BAS 39 Financial Instruments: Recognition potential impact on its financial
and Measurement. BFRS 9 includes statements resulting from the
revised guidance on the classification and application of BFRS 9.
measurement of financial instruments, a new
expected credit loss model for calculating
impairment on financial assets, and new
general hedge accounting requirements.
It also carries forward the guidance on
recognition and derecognition of financial
instruments from BAS 39.
BFRS 9 is effective for annual reporting periods
beginning on or after 1 January 2018, with
early adoption permitted.
BFRS 15 Revenue BFRS 15 establishes a comprehensive The Bank is assessing the
from Contracts with framework for determining whether, how potential impact on its financial
Customers much and when revenue is recognised. statements resulting from the
It replaces existing revenue recognition application of BFRS 15.
guidance, including BAS 18 Revenue, BAS
11 Construction Contracts and BFRIC 13
Customer Loyalty Programmes.
BFRS 15 is effective for annual reporting
periods beginning on or after 1 January 2018,
with early adoption permitted.
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 2015
Particulars Date of Rating Long term Short term

AA ST-2
Double A
Surveillance Rating
23-Jun-16 (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 BFRSs, 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 BFRS 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 8 April 2017.
3.28 General
Figures of previous year have been rearranged, whenever necessary, to conform the current year's presentation.
2016 2015
Note
Taka Taka
4 Consolidated cash
In hand (including foreign currencies):
Southeast Bank Limited 4.1 2,428,412,898 1,903,292,780
Southeast Exchange Company (South Africa) Pty Ltd 4,164,053 -
Southeast Financial Services (Australia) Pty Ltd 43,356 -
2,432,620,307 1,903,292,780
(including foreign currencies):
Southeast Bank Limited 4.1 15,402,827,761 14,093,697,688
17,835,448,068 15,996,990,468
4.1 Cash
In hand:
Local currency 2,381,811,031 1,850,553,332
Foreign currencies 46,601,867 52,739,448
2,428,412,898 1,903,292,780
Balance with Bangladesh Bank:
Local currency 14,733,980,769 13,333,892,854
Foreign currencies 378,978,102 586,094,753
15,112,958,871 13,919,987,607
Balance with Sonali Bank Limited (as agent of Bangladesh Bank):
Local currency 289,868,890 173,710,081
Balance with Bangladesh Bank and its agent banks 15,402,827,761 14,093,697,688
(including foreign currencies)
17,831,240,659 15,996,990,468
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.
The statutory Cash Reserve Ratio on the Bank's demand and time liabilities at the rate of minimum 6.0% on daily
basis and 6.50% 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
6.50% of average Demand and Time Liabilities:
Required reserve (Average daily on bi-weekly basis) 14,028,676,662 12,257,453,364
Actual reserve held 14,188,314,690 12,559,045,682

Surplus 159,638,028 301,592,318
b) Cash Reserve Ratio (CRR) for Islamic Banking
6.50% of average Demand and Time Liabilities:
Required reserve (Average daily on bi-weekly basis) 815,652,913 783,041,796
Actual reserve held 870,294,183 834,839,164
Surplus 54,641,270 51,797,368
2016 2015
Note
Taka Taka
4.2.2 a) Statutory Liquidity Ratio (SLR) for Conventional Banking

Required reserve (13% of average Demand and Time Liabilities:) 28,057,353,324 24,514,906,728
Actual reserve held 56,373,180,749 54,255,264,173
Surplus 28,315,827,425 29,740,357,445
Held for Statutory Liquidity Ratio of Conventional Banking:
Cash in hand 2,289,521,421 1,817,641,355
Balance with agent bank (Sonali Bank Limited) as per statement 274,217,000 155,245,000
Excess cash reserve 159,638,028 301,592,318
Government Securities (HFT) 21,205,497,000 21,864,407,000
Government Securities (HTM) 32,440,264,000 30,110,991,000
Other eligible securities/ Prize Bond 4,043,300 5,387,500
56,373,180,749 54,255,264,173
b) Statutory Liquidity Ratio (SLR) for Islamic Banking
Required reserve (5.50 % of average Demand and Time Liabilities:) 690,167,850 662,573,830
Surplus 168,907,897 115,270,193
Held for Statutory Liquidity Ratio of Islamic Banking:
Cash in hand 138,891,477 85,651,425
Balance with agent bank (Sonali Bank Limited) as per statement 15,543,000 395,230
Government Securities (HTM) 650,000,000 640,000,000
859,075,747 777,844,023
5 Consolidated balance with other banks and financial institutions
In Bangladesh:
Southeast Bank Limited 6 2,860,092,475 2,187,972,750
Southeast Bank Capital Services Limited 581,276,914 21,374,639
3,441,369,389 2,209,347,389
Less: Inter company balance eliminated 581,276,914 21,374,639
2,860,092,475 2,187,972,750
Outside Bangladesh:
Southeast Financial Services (UK) Ltd 2,542,480 3,473,088
Southeast Financial Services (Australia) Pty Ltd 177,967 2,268,786
Southeast Exchange Company (South Africa) Pty Ltd 63,790,138 48,587,080
1,185,128,939 1,203,350,315
4,045,221,414 3,391,323,065
6 Balance with other banks and financial institutions
In Bangladesh 6.1 2,860,092,475 2,187,972,750
Outside Bangladesh 6.2 1,118,618,354 1,149,021,361
3,978,710,829 3,336,994,111
Also refer to note 6.3 for maturity wise grouping
2016 2015
Note
Taka Taka
6.1 In Bangladesh
Current account with:
Agrani Bank Limited 575,850 575,850
Al Arafah Islami Bank Limited 14,894,941 14,011,899
BRAC Bank Limited 5,001 1,774,610
BRAC Bank Limited (El Dorado Network) 543,506 3,964,484
Commercial Bank of Ceylon PLC 13,337 13,337
EXIM Bank Limited 8,758,775 7,120,339
The Farmers Bank Limited 6,614,752 2,553,122
Jamuna Bank Limited 34,804,125 27,253,637
Meghna Bank Limited 3,129,809 2,316,169
Mercantile Bank Limited 5,538,588 5,410,710
Modumoti Bank Limited 2,301,653 2,569,738
Mutual Trust Bank Limited 13,832,137 17,869,673
National Bank Limited 19,074 12,210
One Bank Limited 1,742,091 3,735,933
Prime Bank Limited 2,008 3,158
Sonali Bank Limited (326,533) 2,589,257
Shahjalal Islami Bank Limited 550,000 550,000
Trust Bank Limited 3,160,509 3,160,509
Union Bank Limited 14,251,563 6,194,312
United Commercial Bank Limited 16,782,341 5,345,854
NRB Commercial Bank Limited 100,000 100,000
South Bangla Agriculture & Commerce Bank Limited 491,452 1,611,292
127,784,979 108,736,093
Savings deposits account with:
EXIM Bank Limited - 110,557
Social Islami Bank Limited - 108,679
- 219,236
Short term deposits account with:
AB Bank Limited 28,005 28,004
The City Bank Limited 1,106,755 1,106,755
Eastern Bank Limited 29,556 29,556
EXIM Bank Limited 120,792 184,254
Standard Chartered Bank 4,232,231 2,430,368
Sonali Bank Limited 26,789,812 25,238,139
Uttara Bank Limited 345 345
32,307,496 29,017,421
Fixed deposits with other banks:
The Farmers Bank Limited - 50,000,000
NRB Global Bank Limited 250,000,000 -
One Bank Limited 500,000,000 -

Social Islami Bank Limited 300,000,000 -
The ICB Islamic Bank Limited - 1,000,000,000
1,050,000,000 1,050,000,000
Fixed deposits with financial institutions:
Bay Leasing and Investment Limited 500,000,000 450,000,000
Fareast Finance and Investment Limited - 100,000,000
Industrial and Infrastructure Development
Finance Company Limited 100,000,000 -
IPDC Finance Limited 200,000,000 -
International Leasing and Financial Services Limited 100,000,000 200,000,000
Union Capital Limited 100,000,000 -
Bangladesh Industrial Finance Company Limited 150,000,000 50,000,000
GSP Finance Company (Bangladesh) Limited - 200,000,000
Investment Corporation of Bangladesh 500,000,000 -
1,650,000,000 1,000,000,000
2,860,092,475 2,187,972,750
2016 2015
Note
Taka Taka
6.2 Outside Bangladesh

Current account
Interest bearing:
Standard Chartered Bank, New York, USA 79,939,791 162,867,320
Standard Chartered Bank, New York OBU 2,502,922 25,993,493
Citibank N.A, New York, USA 12,320,169 6,230,285
Standard Chartered Bank, London, UK 35,706,219 10,421,686
Mashreq Bank PSC, New York, USA 378,944,176 536,105,342
Wells Fargo Bank, N.A., New York, USA 43,158,173 17,096,588
Citibank AG, Frankfurt, Germany 2,966,473 (4,849,259)
Standard Chartered Bank, Calcutta, India 5,150,727 16,498,010
AB Bank Ltd., Mumbai, India 34,012,582 15,948,685
ICICI Bank Ltd., Mumbai, India 3,331,684 3,140,691
JP Morgan Chase Bank N.A., New York, USA 144,963,770 42,798,605
Habib American Bank, New York, USA 54,519,931 15,442,516
Mashreq Bank, Mumbai, India 13,876,284 16,181,958
Mashreq Bank, Mumbai, India 1,278,977 6,467,370
Sonali Bank (UK) Ltd. USD 54,288,239 102,989,122
Sonali Bank (UK) Ltd. GBP 16,012,568 8,114,118
Sonali Bank (UK) Ltd. EURO 2,442,370 4,772,406
885,415,055 986,218,936
Non-interest bearing:
Bank of Nova Scotia, Toronto, Canada - 2,517,501
United Bank Limited, Karachi, Pakistan 12,773,370 289,179
Standard Chartered Bank, Colombo, Srilanka 15,961,921 9,240,541
Standard Chartered Bank, Mumbai (AEB), India 1,987,849 1,982,525
Habib Allied Intl Bank, UK EUR 6,024,463 -
Bank of Tokyo, Mitsubishi, JPY 1,258,241 -
Nepal Bangladesh Bank Ltd., Kathmandu, Nepal 3,789,947 2,357,015
Bank of Bhutan, Pheuntsholing, Bhutan 6,233,334 2,994,202
Commerz Bank AG, Frankfurt, Germany EURO 4,947,574 598,944
Commerz Bank AG, Frankfurt, Germany USD 39,325,786 41,682,998
U.B.A.F., Tokyo, Japan - 5,482,794
Zuercher Kantonal Bank, Zurich, Switzerland 10,784,568 10,945,034
National Australia Bank Ltd., Melbourne, 7,725,805 21,916,941
Australia
HDFC Bank, Mumbai, India 83,931,106 54,238,086
Habib Bank AG Zurich, Zurich, Switzerland 1,830,346 1,951,850
Mashreq Bank PSC, Dubai, UAE 2,229,915 144,445
Habib Metropoliton Bank Ltd., Karachi, Pakistan 28,769,758 4,408,327
Al Rajhi Bank, Saudi Arabia 5,629,316 2,052,043
233,203,299 162,802,425
1,118,618,354 1,149,021,361
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 1,246,403,333 1,094,955,029
Not more than three months 2,632,307,496 2,042,039,082
More than three months but not more than six months 100,000,000 200,000,000
More than six months but not more than one year - -
More than one year but less than five years - -
Above five years - -
3,978,710,829 3,336,994,111
2016 2015
Note
Taka Taka
7 Money at call and on short notice

In bank:
The ICB Islamic Bank Limited 11,300,000 15,300,000
NRB Commercial Bank Limited - 220,000,000
NRB Bank Limited - 40,000,000
Bank Al Falah Ltd. - 100,000,000
Habib Bank Limited, Dhaka - 150,000,000
Midland Bank Limited 200,000,000 -
Modhumoti Bank Limited 200,000,000 -
BRAC Bank Limited 230,000,000 -
NCC Bank Limited 800,000,000 -
1,441,300,000 525,300,000
In non-banking financial institutions (public and private):
Phoenix Finance and Investment Limited 190,000,000 -
IPDC Finance Limited 100,000,000 -
LankaBangla Finance Ltd. 100,000,000 -
390,000,000 -
In foreign currency:
AB Bank Limited 708,399,900 398,151,500
BRAC Bank Limited 314,844,400 -
Premier Bank Limited 314,844,400 -
NCC Bank Limited 236,133,300 -
Commercial Bank of Ceylon PLC 236,133,300 -
Mutual Trust Bank Limited 78,711,100 -
Eastern Bank Limited 393,555,500 -
2,440,044,100 398,151,500
4,271,344,100 923,451,500
8 Consolidated Investments
Government securities:
54,299,803,894 52,620,785,540
Others:
Southeast Bank Capital Services Limited 2,276,624,953 1,940,851,629
7,431,830,566 6,208,480,661
61,731,634,460 58,829,266,201
9 Investments
Government securities:
Conventional Banking 9.1.1 53,649,803,894 51,980,785,540

Islamic Banking 9.2.1 650,000,000 640,000,000
54,299,803,894 52,620,785,540
Others:
Conventional Banking 9.1.2 2,267,841,260 1,093,455,544
Islamic Banking 9.2.2 2,887,364,353 3,174,173,488
5,155,205,613 4,267,629,032
59,455,009,507 56,888,414,572
Also refer to notes 9.3 to 9.8 for further analysis, maturity wise grouping, market value information, sector wise
investment, etc.
2016 2015
Taka Taka
9.1 Conventional Banking

9.1.1 Government Securities
Treasury Bills
364 days Treasury Bills 991,930,001 985,535,100
991,930,001 985,535,100
Assured Repo with Bangladesh Bank/ Others (at book value) - (295,937,100)
991,930,001 689,598,000
Prize Bonds 4,043,300 5,387,500
Bangladesh Bank Bills - -
4,043,300 5,387,500
Government Bonds
2 Years BGTB HTM 1,324,190,350 172,000,000
5 Years BGTB HTM 5,059,213,001 4,095,252,659
10 Years BGTB HTM 13,114,179,977 12,226,663,613
15 Years BGTB HTM 6,496,362,680 4,664,118,802
20 Years BGTB HTM 5,484,568,752 3,890,282,974
Remeasured 5 years BGTB HTM - 4,102,785,342
Remeasured 10 years BGTB HTM 961,749,167 959,887,889
2 Years BGTB HFT 3,197,926,886 5,866,512,662
5 Years BGTB HFT 9,452,112,789 8,647,430,447
10 Years BGTB HFT 7,184,666,536 5,254,892,396
15 Years BGTB HFT 167,447,843 1,155,363,067
20 Years BGTB HFT 211,412,612 250,610,189
52,653,830,593 51,285,800,040
53,649,803,894 51,980,785,540
9.1.2 Others
Shares in listed companies 1,006,352,650 878,467,734
Shares in un-listed companies 61,488,610 214,987,810
Bonds 1,200,000,000 -
2,267,841,260 1,093,455,544
9.2 Islamic banking
9.2.1 Government securities
Bangladesh Government Islamic bond 650,000,000 640,000,000
650,000,000 640,000,000
9.2.2 Others
Shares in listed companies 2,887,364,353 3,174,173,488
2,887,364,353 3,174,173,488
9.3 Investments classified as per Bangladesh Bank Circular
Held for trading (HFT) 21,209,539,967 21,869,794,261
Held to maturity (HTM) 33,090,263,927 30,750,991,279
Other securities 5,155,205,613 4,267,629,032
59,455,009,507 56,888,414,572
9.4 Maturity-wise grouping of investment
On demand 4,043,300 5,387,500
Not more than three months 2,343,870,935 3,965,660,049
More than three months but not more than one year 7,032,299,074 9,737,790,409
More than one year but not more than five years 25,889,694,776 22,646,851,734
Above five years 24,185,101,422 20,532,724,880
59,455,009,507 56,888,414,572
9.5 Cost and market value of investments

2016 2015
Cost price Market price Market price
Taka Taka Taka
Conventional Banking
Treasury Bills 991,337,930 991,930,001 689,598,000
Bangladesh Government Treasury Bond 52,958,226,446 52,653,830,593 51,285,800,040
Prize Bonds 4,043,300 4,043,300 5,387,500
53,953,607,676 53,649,803,894 51,980,785,540
Islamic Banking
Bangladesh Government Islamic Bond 650,000,000 650,000,000 640,000,000
54,603,607,676 54,299,803,894 52,620,785,540
9.5.2 Others (Investment in Shares) 2016 2015
Market price Cost price Cost price
Taka Taka Taka
Shares in listed companies 816,353,273 1,006,352,650 878,467,734
Shares in un-listed companies 61,488,610 61,488,610 214,987,810
877,841,883 1,067,841,260 1,093,455,544
Islamic Banking
Shares in listed companies 2,162,953,949 2,887,364,353 3,174,173,488
2,162,953,949 2,887,364,353 3,174,173,488
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.
9.6 Sector wise investment of shares 2016 2015
Taka Taka Taka
Shares in listed companies (A)

Banks and NBFI 1,102,737,124 2,055,989,695 2,610,329,218
Insurance Companies 552,623,098 573,997,079 523,211,903
Fuel and Power Companies 138,175,934 151,199,550 25,531,440
Mutual Fund 438,541,544 365,642,276 401,538,326

Manufacturing & Other 747,229,522 746,888,403 492,030,335
2,979,307,222 3,893,717,003 4,052,641,222
2016 2015
Shares in un-listed companies (B) Net book value Cost price Cost price
Taka Taka Taka
Banks and NBFI 166,935,993 54,183,820 57,683,820

Manufacturing - - 149,999,200
Others 33,830,764 7,304,790 7,304,790
200,766,757 61,488,610 214,987,810
Total investment of shares (C=A+B) 3,955,205,613 4,267,629,032
The investments in shares of unlisted companies are shown at cost or net book value of the last audited balance
sheet, whichever is lower.
2016 Differences
(Provision to be
Market price Cost price required)
Taka Taka Taka
9.7 Market price and cost price of investments in ordinary shares as on 31 December 2016
1 Asia Insurance Limited 40,720,872 76,805,098 (36,084,226)

2 Bay Leasing & Investment Limited 306,804,802 643,319,328 (336,514,526)
3 EXIM Bank 1st Mutual Fund 91,050,036 93,296,119 -
4 EXIM Bank Limited 338,449,996 696,815,163 (358,365,167)
5 IFIC Bank 1st Mutual Fund 7,867,060 11,905,461 -
6 Islami Bank Limited 15,992,708 16,412,876 (420,168)
7 Lafarge Surma Cement Limited 131,028,398 155,264,542 (24,236,144)
8 National Life Insurance Co. Limited 456,695,360 397,735,353 58,960,007
9 Prime Bank Limited 242,721,782 433,586,851 (190,865,069)
10 Rupali Bank Limited 2,172,142 9,074,723 (6,902,581)
11 Standard Bank Limited 15,241,258 15,940,654 (699,396)
12 Titas Gas Trans. Co. Ltd. 89,160,973 92,298,169 (3,137,196)
13 SEBL MF 335,500,000 250,000,000 85,500,000
14 Trust Bank 1st Mutual Fund 4,124,448 10,440,696 (3,896,572)
15 Trust Bank Limited 1,190,000 1,189,740 260
16 NCC Bank Limited 36,887,183 49,228,082 (12,340,899)
17 One Bank Limited 32,585,297 35,307,295 (2,721,998)
18 Eastern Bank Limited 37,511,413 52,068,101 (14,556,688)
19 RN Spinning 3,446,079 4,459,649 (1,013,570)
20 Premier Cement Mills Limited 40,032,240 48,428,204 (8,395,964)
21 Prime Finance Limited 7,884,394 26,958,933 (19,074,539)
22 Premier Leasing & Finance Limited 18,234,930 26,902,718 (8,667,788)
23 Generation Next Fashion Limited 37,121,088 65,982,996 (28,861,908)
24 Union Capital Limited 12,218,995 14,012,426 (1,793,431)
25 Bangladesh LAMPS LTD 12,740,943 16,791,948 (4,051,005)
26 Bangladesh Submarine Cable Co. Ltd. 31,913,837 46,266,367 (14,352,530)
27 Delta Life Insurance Limited 55,206,866 99,456,628 (44,249,762)
28 Aftab Automobiles Limited 61,249,892 94,751,115 (33,501,223)
29 Global Heavy Chemicals Limited 24,917,993 34,247,190 (9,329,197)
30 Fuwang Food 160,000 125,956 34,044
31 Delta Spinners Limited 2,577,850 3,719,475 (1,141,625)
32 Envoy Textile Mills Ltd. 839,244 1,157,799 (318,555)
33 Meghna Petroleum Limited 11,955,946 16,651,636 (4,695,690)
34 ACME Laboratories Limited 285,575,400 151,004,255 134,571,145
35 Matin Spinning Mills Limited 11,400,720 14,044,434 (2,643,714)
36 Ifad Autos 400,800 324,726 76,074
37 Aman Feed Ltd. 13,708,853 14,321,866 (613,013)
38 Orion Pharma 8,257,915 8,110,242 147,673
39 Olympic Aceessories ltd 2,165,027 1,947,978 217,049
40 ACI Formulation 11,109,984 11,887,880 (777,896)
41 BRAC Bank Limited 9,666,665 9,935,565 (268,900)
42 Apolo Ispat 205,000 148,688 56,312
43 IPDC Finance Limited 6,998,445 7,044,521 (46,076)
44 Phoenix Finance & Investment Ltd. 6,160,100 6,268,931 (108,831)
45 BSC 4,702,000 4,699,724 2,276
46 Fuwang Ceramic 1,829,100 1,592,344 236,756
47 Emerald Oil 591,000 461,698 129,302
48 S ALAM 3,730,000 4,004,908 (274,908)
49 LankaBangla Finance Limited 8,799,563 8,579,814 219,749
2016 Differences
(Provision to be
Market price Cost price required)
Taka Taka Taka
50 Saif Power Tec Ltd. 34,991,612 35,704,991 (713,379)
51 ICB 3,217,451 3,343,974 (126,523)
52 Khan Brothers 1,477,688 1,471,488 6,200
53 BSRM Limited 12,760,000 17,059,559 (4,299,559)
54 Yeakin Polymer 69,385 20,749 48,636
55 Fortune Shoes Ltd.. 511,200 432,229 78,971
56 ShahjiBazar Power Company Ltd. 27,097,510 32,184,686 (5,087,176)
57 Baraka Power 9,961,505 10,065,059 (103,554)
58 GQ Ballpen 2,148,274 2,308,967 (160,693)
59 BSRM Steel Mills Ltd. 5,568,000 6,146,439 (578,439)
2,979,307,222 3,893,717,006 (905,705,624)
Actual provision 905,705,624
Surplus/(deficit) -
As at 31 December 2016, the value of investment cell which includes all investment in shares, corporate bond,
debenture, mutual fund and total market value of other capital certificates and loan facilities given to own sub-
sidiary company or companies directly or indirectly involved in capital market affairs stood at Tk 2,100.91 (2015:
1,960.08) crores which is 21.53% (2015: 36.37%) of total sum of paid up capital, statutory reserve and retained
earnings of the bank.
9.8 Transactions of Repo and Reverse-repo during the year
Minimum Maximum Daily average

outstanding outstanding outstanding
Taka Taka Taka
2016
Securities sold under repo
i) With Bangladesh Bank - - -
ii) With other Banks & FIs 102,379,665 1,922,396,270 297,493,731
Securities purchased under reverse repo
i) With Bangladesh Bank - - -
2015
Securities sold under repo
i) With Bangladesh Bank 294,950,000 3,590,955,000 230,726,383
ii) With other Banks & FIs 2,477,729,244 244,107,750 449,183,076
Securities purchased under reverse repo

i) With Bangladesh Bank 300,000,000 2,350,000,000 36,843,779
2016 2015
Taka Taka
10 Consolidated loans and advances/investments
Loans, cash credit, overdrafts etc./investments:
Southeast Bank Capital Services Limited 2,500,642,443 2,363,503,025
182,661,829,657 164,420,225,512
Less: Inter company balance eliminated 10,674 2,863,903,191
182,661,818,983 161,556,322,321
Bills purchased and discounted:
9,203,770,254 7,322,136,224
191,865,589,237 168,878,458,545
2016 2015
Note
Taka Taka
11 Loans and advances/investments
Loans, cash credit, overdrafts etc./investments 11.1 180,161,187,214 162,056,722,487

Bills purchased and discounted 11.14 9,203,770,254 7,322,136,224
189,364,957,468 169,378,858,711
11.1 Loans, cash credit, overdrafts etc./Investments

In Bangladesh:
Demand loan 5,025,639,557 4,551,141,658
Time loan 20,064,629,716 16,711,508,514
Term loan 69,051,082,952 60,080,906,138
Agricultural credit-Term 933,182,554 535,330,860
Agricultural credit-Time 1,105,435,895 964,023,377
Agricultural credit-OD 94,413,590 39,729,457
Consumer credit scheme 4,924,067 7,544,224
Car loan 73,227,474 51,040,857
Personal loan 373,219,780 367,078,166
Home loan 515,726,845 265,658,130
Cash credit and overdrafts 45,296,952,050 38,617,922,709
Bills Against Letter of Credit (BLC) 294,075,920 212,508,158
Loan re-finance housing sector 20,349,457 21,447,159
Loan against Trust Receipt (LTR) 13,378,652,768 17,067,432,717
Advances-packing credit (PC) 2,397,107,920 2,084,196,551
House building loan-staff 188,907,457 180,324,168
Digital device 185,449 403,990
Export Development Fund (EDF) 11,112,134,762 7,058,645,348
Loan against cash incentive 130,507,407 123,693,689
Loan-credit card 1,135,680,036 904,417,015
171,196,035,656 149,844,952,885
Islamic Banking
Demand investment 242,699,956 39,653,688
Bai-Muajjal (Time) investment 310,841,197 259,042,064
Bai-Muajjal Time under CCS 55,960,365 43,418,633
Bai-Murabaha-BLC 32,499,080 6,738,157
Bai-Murabaha-LTR 476,095,001 1,199,083,998
Bai-Salam 84,436,201 73,641,541
Staff house building investment 8,362,607 8,648,005
Investment against cash incentive 17,327,114 9,932,898
Export Development Fund (EDF) 633,716,266 394,527,668
Bai-Muajjal-investment 3,269,956,321 6,350,895,335
Murabaha-investment 624,262,832 562,799,707
Hire purchase-investment 3,208,994,618 3,263,282,206
Quard against MTDR - 105,702
8,965,151,558 12,211,769,602
180,161,187,214 162,056,722,487
Outside Bangladesh - -
180,161,187,214 162,056,722,487
2016 2015
Taka Taka
11.2 Performing loans and advances/investments
Gross loans and advances/investments 189,364,957,468 169,378,858,711

Non-performing loans and advances/investments (9,257,788,205) (7,193,823,963)
180,107,169,263 162,185,034,748
11.3 Maturity-wise grouping of loans and advances/ Investments
On demand 43,794,108,537 39,477,070,239

Less than three months 24,803,469,746 20,774,326,085
More than three months but less than one year 50,941,232,848 48,736,933,155
More than one year but less than five years 47,341,367,857 37,652,834,591
More than five years 22,484,778,480 22,737,694,641
189,364,957,468 169,378,858,711
11.4 Concentration of loans and advances/ Investments
Advances to allied concerns of directors - -

Advances to chief executive and other senior executives 72,967,000 66,078,000
Advances to customers' group:
Advances to large and medium industries 83,239,207,953 74,011,200,000
Advances to small and cottage industries 1,875,500,000 1,082,000,000
Commercial lending 39,031,160,279 41,015,100,000
Export financing 14,375,200,000 9,744,600,000
Real estate 14,994,200,000 13,046,400,000
Consumer credit scheme 60,884,432 50,962,857
Other loans and advances 35,715,837,804 30,362,517,854
189,364,957,468 169,378,858,711
Details of large loan/investments
As at 31 December 2016 there were 25 (2015: 28) 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 34,021.14 million as at 31 Decem-
ber 2016 (Tk. 28,490.49 million as at 31 December 2015).
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

2016 2015
% of % of
total Taka total Taka
loan loan
Agriculture 1.29% 2,438,900,000 0.92% 1,554,400,000
Industry (other than working capital) 23.10% 43,734,198,080 22.86% 38,720,100,000
Working capital financing 20.86% 39,505,009,874 20.84% 35,291,100,000
Export credit 7.59% 14,375,200,000 5.75% 9,744,600,000
Commercial credit 20.61% 39,031,160,279 24.22% 41,015,100,000
Small and cottage industries 0.99% 1,875,500,000 0.64% 1,082,000,000
Others:
a) Finance to NBFIs 0.64% 1,213,000,000 0.60% 1,018,800,000
b) Real Estate 7.92% 14,994,200,000 7.70% 13,046,400,000
c) Transport & communication 0.76% 1,446,700,000 0.78% 1,325,200,000
d) Small Enterprise financing 11.21% 21,231,811,601 11.16% 18,896,200,000
e) Miscellaneous 5.03% 9,519,277,634 4.54% 7,684,958,711
100.00% 189,364,957,468 100.00% 169,378,858,711
2016 2015
Taka Taka
11.6 Industry-wise loans and advances (Industrial Loan)

Textile and garments industries including spinning industries 48,935,900,000 38,256,800,000
Food and allied industries 6,149,345,353 5,580,700,000
Pharmaceutical industries 747,703,027 718,400,000
Chemical, fertilizer, etc. 78,410,637 150,900,000
Cement and ceramic industries 3,455,073,480 3,381,900,000
Service industries 2,724,598,492 2,221,200,000
Other industries 21,148,176,964 23,701,300,000
83,239,207,953 74,011,200,000
11.7 Category-wise Small Medium Enterprise loans and advances (SME)
Service sector 10,190,100,000 4,862,854,509
Trading sector 25,062,000,000 21,869,170,231
Industrial sector 6,035,000,000 7,782,155,638
41,287,100,000 34,514,180,378
11.8 Geographical location-wise allocations of loans and advances
2016 2015
% of % of
total Taka total Taka
loan loan
Urban:
Dhaka region 69.96% 132,470,612,723 69.77% 118,174,627,186
Chittagong region 18.10% 34,265,791,215 21.02% 35,604,749,224
Rajshahi region 2.07% 3,918,908,039 1.35% 2,293,150,022
Sylhet region 1.76% 3,334,117,812 2.08% 3,527,342,515
Khulna region 0.64% 1,203,827,539 0.88% 1,495,952,883
Rangpur region 0.48% 901,462,668 0.44% 750,949,679
Barisal region 0.08% 158,019,720 0.05% 90,222,155
Mymensingh region 0.28% 524,914,224 0.05% 79,589,318
93.35% 176,777,653,940 95.65% 162,016,582,982
Rural:
Dhaka region 3.17% 6,002,966,153 2.74% 4,639,965,758
Chittagong region 1.85% 3,504,951,864 1.44% 2,433,193,648
Sylhet region 0.81% 1,540,320,041 0.14% 232,130,495
Rajshahi region 0.25% 478,849,898 0.03% 56,985,828
Khulna region 0.56% 1,060,215,572 0.00% -
6.65% 12,587,303,528 4.35% 7,362,275,729
100.00% 189,364,957,468 100.00% 169,378,858,711
11.9 Classification of loans and advances
Unclassified:
Standard including staff loan 90.47% 171,314,821,176 91.70% 155,315,330,299
Special Mention Account (SMA) 4.63% 8,792,348,087 4.06% 6,869,704,449
95.11% 180,107,169,263 95.75% 162,185,034,748
Classified:
Sub-standard 0.83% 1,567,127,630 0.90% 1,517,889,736
Doubtful 0.31% 587,799,462 0.73% 1,240,806,394
Bad/loss 3.75% 7,102,861,113 2.62% 4,435,127,833
4.89% 9,257,788,205 4.25% 7,193,823,963
100.00% 189,364,957,468 100.00% 169,378,858,711
The amount reported above under standard category includes certain non-performing loan accounts with an
aggregate outstanding amount of Tk.14,037.6 million at 31 December 2016 which have not been reported as
classified loans at year-end on the basis of stay order from the Honorable High Court Division of the Supreme
Court of Bangladesh. The amount of interest suspense and eligible securities available against these loans as
at 31 December 2016 were Tk.1,323 million and Tk. 2,310.4 million respectively. As at 31 December 2016, an
aggregate amount of Tk.138.3 million has been kept as general provision applicable for loans under standard
category.
In connection with these loans Bangladesh Bank suggested vide letter reference no. DBI-1/78/2017-1206
dated 27 March 2017 to maintain additional provision of Tk. 767.6 million in 2016. The Bank has provided such
additional provision in the financial statements of 2016.
2016 2015
Taka Taka
11.10 Particulars of loans and advances
i) Debts considered good in respect of which the bank is fully secured; 155,162,481,958 131,029,202,890
ii) Debts considered good for which the bank holds no other security
than the debtors' personal security; 12,149,368,473 14,387,425,624
iii) Debts considered good secured by the personal liabilities of one
or more parties in addition to the personal security of the debtors; 22,053,107,036 23,962,230,197
iv) Debts adversely classified; provision not maintained - -
v) Debts due by directors or officers of the bank or any of them
either severally or jointly with any other persons; 197,859,451 189,805,585
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 managers
or officers of the bank or any of them either severally or jointly
with any other persons; 197,859,451 189,805,585
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) 1,404,996,225 (350,206,903)
Amount of debts written off 1,012,890,775 2,452,261,045
Amount realised against the debts previously written off 72,709,902 174,604,278
(b) Provision against the debt classified as
bad/loss at the date of balance sheet 2,956,142,427 1,707,744,942
(c) Amount of interest charged in suspense account 3,549,523,832 2,832,654,051
xi) Loans written off:
● Current year 1,130,516,095 2,963,802,165
● Cumulative to-date 9,076,603,000 8,050,306,676
● The amount of written off loans for which lawsuit filed 9,076,603,000 8,050,306,676
11.11 Particulars of required provision for loans and advances/investments

2016 2015
Outstanding Base for Required Required
Status as at 31 Dec provision % of provision provision
2016 required
provision
Taka 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) 130,240,699,926 130,240,699,926 1% 1,302,407,000 1,178,158,981
Small and medium enterprise financing 35,940,138,752 35,940,138,752 0.25% 89,850,351 75,775,474
Loan to BHs/MBs/SDs against shares 1,418,736,083 1,418,736,083 2% 28,374,722 82,317,321
Housing and loan for professional 631,759,684 631,759,684 2% 12,635,194 7,980,279
Consumer finance 1,458,331,315 1,458,331,315 5% 72,916,567 62,066,145
Agriculture finance 1,427,885,352 1,427,885,352 2.50% 35,697,134 31,101,800
Staff loan 197,270,064 197,270,064 1% 1,972,701 1,889,723
Special Mention Account (SMA) 8,792,348,087 8,705,458,297 0.25%-5% 117,685,493 98,500,037

1,661,539,162 1,537,789,760
Classified-specific provision:
Sub-standard 1,567,127,630 576,068,882 5%-20% 114,289,342 128,161,657
Doubtful 587,799,462 228,127,330 50% 113,835,313 279,926,029
Bad/loss 7,102,861,113 2,956,142,427 100% 2,956,142,427 1,707,744,942
189,364,957,468 183,780,618,112 3,184,267,082 2,115,832,628
Required provision for loans and

advances (A) 4,845,806,244 3,653,622,388
Total provision maintained (B) 6,158,284,306 3,863,288,081
Excess provision as at 31 December (C=B-A) 1,312,478,062 209,665,693
* Provision for loans and advances has been kept as per Bangladesh Bank letter reference no: DBI-1/78/2017-
1206 dated 27 March 2017.
2016 2015
Taka Taka
11.12 Suits filed by the Bank (Branch wise details)
Aganagar Branch 24,601,270 57,354,953
Agargaon Branch 46,495,055 32,208,767
Agrabad Branch 3,400,105,252 1,694,861,880
Banani Branch 478,744,788 478,377,367
Bandar Bazar Branch 33,472,439 31,862,743
Bangshal Branch 756,783,708 302,426,168
Bogra Branch 102,439,383 95,118,164
CDA Avenue Branch 1,001,878,996 568,628,205
Chapainawabgonj Branch 6,670,345 -
Chouhatta Branch 32,123,958 31,481,125
Corporate Branch 56,546,456 58,392,487
Cox's Bazar Branch 67,768,272 59,302,319
Dhanmondi Branch 1,828,021,588 1,816,479,159
Gulshan Branch 119,890,152 255,942,698
Halishahar Branch 1,824,036,037 1,824,036,037
Imamgonj Branch 298,675,545 304,124,658
Jubilee Road Branch 40,036,273 39,543,618
Kakrail Branch 41,352,380 41,352,380
Kawranbazar Branch 98,482,809 4,437,057
Khatungonj Branch 859,750,230 859,750,230
Khulna Branch 98,484,842 98,088,592
Konabari Branch 1,862,261 1,862,261
Kotowali Branch 74,826,552 74,826,552
Kulaura Branch 9,078,456 9,078,456
Laldighirpar Branch 113,465,769 107,401,973
Madambibirhat Branch 27,584,384 27,584,384
Mohammadpur Branch 10,406,570 10,406,570
Momin Road Branch 109,818,537 109,818,537
Mouchak Branch 79,543,346 79,543,346
Moulvibazar Branch 171,254,940 157,084,193
Naogaon Branch 7,375,594 7,375,594
Narayangonj Branch 54,511,315 57,204,744
New Elephant Road Branch 127,592,586 127,592,586
New Eskaton Branch 171,552,903 171,552,903

Pahartoli Branch 826,535,766 814,940,063
Principal Branch 5,515,730,861 5,615,943,766
Progoti Soroni Branch 61,593,200 61,593,200
Rupnagar Branch 5,582,437 -
Shahjalal Uposhahar Branch 138,193,352 128,539,223
Sir Iqbal Road Branch 14,315,940 -
Uttara Branch 270,340,241 270,340,241
19,007,524,788 16,486,457,199
2016 2015
Taka Taka
11.13 Listing of assets pledged as security/collaterals
Nature of the secured assets
Shares & Securities 1,295,544,654 779,939,729
Merchandise 2,956,323,198 5,316,351,142
Machinery with other fixed asset and financial obligation 7,794,104,888 8,002,585,325
Real estate with financial obligation 140,515,613,690 125,630,176,235
Financial obligation only 10,714,696,416 5,310,266,244
"(Insurance policies, savings certificates,
bank deposit etc)"
Miscellaneous-
i) Crops/stock of crops hypothecation 2,058,718,058 3,424,026,215
ii) Guarantee of individuals/institutions 20,977,372,216 18,318,775,687
ii) Others 3,052,584,348 2,596,738,134
189,364,957,468 169,378,858,711
11.14 Bills purchased and discounted
In Bangladesh 2,632,005,815 2,099,077,877
8,877,720,769 7,163,195,295
Islamic Banking
In Bangladesh 248,139,426 140,539,240
Outside Bangladesh 77,910,059 18,401,689
326,049,485 158,940,929
9,203,770,254 7,322,136,224
11.15 Maturity grouping of bills discounted and purchased
Within one month 3,311,763,128 2,230,552,240
More than one month but less than three months 2,758,723,516 2,755,870,023
More than three months but less than six months 1,928,586,180 1,782,847,068
More than six months 1,204,697,430 552,866,893
9,203,770,254 7,322,136,224
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. 3,117.60 million as on 31 December 2016) 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 Bank Limited 10,406,610,372 9,276,727,677
Southeast Financial Services (Australia) Pty Ltd 2,422,206 2,440,636
10,827,992,171 9,470,326,743
Less: Accumulated depreciation
Southeast Exchange Company (South Africa) Pty Ltd 2,221,550 817,600
1,880,829,615 1,585,100,332
Written down value at the end of the year 8,947,162,556 7,885,226,411
There were no capitalized borrowing cost related to the acquisition of fixed assets during the year (2015: nil).
Details of consolidated amounts have not been provided as such amounts are insignificantly different from
those of the Banks.
2016 2015
Note Taka Taka
13 Fixed assets including premises, furniture and fixtures
Cost:
Land 5,775,037,313 5,348,446,725
Buildings 1,898,987,918 1,524,312,748
Furniture and fixtures 1,124,644,629 993,739,499
Office appliances 14,193,473 12,142,094
Computer 180,392,040 113,605,311
Electrical appliances 1,108,311,271 1,004,834,193
ATM Booth 174,746,153 158,100,064
Motor vehicles 130,297,575 121,547,043
10,406,610,372 9,276,727,677
Buildings 410,635,626 357,278,241
Furniture and fixtures 509,258,430 447,598,059
Computer 62,231,950 40,537,969
Electrical appliances 640,516,858 537,942,747
ATM Booth 80,142,933 59,176,131
Motor vehicles 81,283,011 75,455,604
1,792,923,672 1,525,648,802
Written down value at the end of the year 8,613,686,700 7,751,078,875
Details are shown in Annexure-E.
14 Consolidated other assets
Southeast Exchange Company (South Africa) Pty Ltd 980,261 550,000
8,621,367,263 6,273,307,987
Less:
Investment in subsidiary:
In Bangladesh 5,452,930,000 1,394,930,000
5,518,030,021 1,459,993,724
Intercompany balance 1,726,998 -
3,101,610,244 4,813,314,263
15 Other assets 8,478,052,796 5,977,253,927
15.1 Classification of other assets
i) Investment in shares of subsidiary companies:
- In Bangladesh 15.3 5,452,930,000 1,394,930,000

- Outside Bangladesh 15.4 65,100,021 65,063,724
ii) Stationery, stamps, printing materials, etc. 54,324,003 48,134,002
iii) Advance rent and advertisement 421,683,670 336,304,591
iv) Interest accrued on investment but not collected,
commission and brokerage receivable on shares
and debentures, and other income receivables 1,403,482,450 1,025,207,893
v) Security deposits 2,282,039 2,275,239
vi) Preliminary, formation and organisational expenses,
renovation, development and prepaid expenses 489,509,292 1,156,827,743
vii) Branch adjustment 15.5 - 1,328,252,847
viii) Suspense account 153,037,756 200,451,481
ix) Others 435,703,565 419,806,407
8,478,052,796 5,977,253,927
2016 2015
Note Taka Taka
15.2 Non-income generating other assets
i) Stationery, stamps, printing materials, etc. 54,324,003 48,134,002
ii) Advance rent and advertisement 421,683,670 336,304,591
iii) Branch adjustment 15.5 - 1,328,252,847
iv) Suspense account 153,037,756 200,451,481
v) Preliminary, formation and organisational expenses,
renovation, development and prepaid expenses 489,509,292 1,156,827,743
1,118,554,721 3,069,970,664
15.3 Investment in shares of subsidiary company
in Bangladesh
Cost 5,489,930,000 1,489,930,000
Less: Provision for impairment loss (37,000,000) (95,000,000)
5,452,930,000 1,394,930,000
15.4 Investment in shares of subsidiary companies
outside Bangladesh
Cost 113,660,069 113,623,772
Less: Provision for impairment loss (48,560,048) (48,560,048)
65,100,021 65,063,724
15.5 Branch adjustment (Debit)
General accounts debit - 3,221,095,847
General accounts credit - 1,892,843,000
- 1,328,252,847
15.6 Particulars of required provision for other assets
Base for provision Rate (%) Taka
2016
Legal expenses for defaulting borrowings 6,602,196 50% 3,301,098
Others 97,209,000 50% 48,604,500
Others 48,782,784 100% 48,782,784
Protested bills 3,581,157 100% 3,581,157
Nostro account balance - 100% -
Required provision on other assets 163,735,000
Total provision maintained 163,735,000
Excess provision -
2015
Protested bills 3,615,397 100% 3,615,397
Nostro account balance - 100% -
Required provision on other assets 52,623,487
Total provision maintained 71,000,000
Excess provision 18,376,513
2016 2015
Note Taka Taka
16 Consolidated borrowings from other banks,

financial institutions and agents
Subordinated bond:
8,000,000,000 3,000,000,000
Other borrowings:
Southeast Bank Capital Services Limited 7,698,493 2,901,042,619
7,371,645,756 7,420,823,043
Less: Inter company balance eliminated 10,674 2,863,903,191
7,371,635,082 4,556,919,852
15,371,635,082 7,556,919,852
17 Borrowings from other banks, financial

Subordinated Bond 17.2.ii 8,000,000,000 3,000,000,000
Other borrowings 17.2.i +17.3 7,363,947,263 4,519,780,424
15,363,947,263 7,519,780,424
17.1 Borrowing from other banks, financial

In Bangladesh 17.2 9,625,908,073 3,163,013,774

Outside Bangladesh 17.3 5,738,039,190 4,356,766,650
15,363,947,263 7,519,780,424
17.2 In Bangladesh
i. Secured:
Refinance against agro-based credit from Bangladesh Bank 8,784,992 12,919,537
Refinance for housing sector from Bangladesh Bank 30,013,624 21,755,851
Refinance against SME loan from Bangladesh Bank 7,850,000 9,853,571
Refinance against Solar energy, Bio Gas & ETP
Scheme from Bangladesh Bank 3,866,844 7,508,176
Refinance against RPGCL 75,392,613 110,976,639
Bangladesh Bank Islamic Bond 1,500,000,000 -
1,625,908,073 163,013,774
ii. Unsecured:
Subordinated Bond
Rupali Bank Limited 1,250,000,000 1,000,000,000
Sonali Bank Limited 1,750,000,000 750,000,000

Agrani Bank Limited 950,000,000 500,000,000
Pubali Bank Limited 1,300,000,000 300,000,000
Mercantile Bank Limited 250,000,000 250,000,000
Saudi-Bangladesh Industrial and Agricultural
Investment Company Ltd. 200,000,000 200,000,000
Sadharan Bima Corporation 100,000,000 -
Uttara Bank Limited 200,000,000 -
Dhaka Bank Limited 750,000,000 -
National Life Insurance Limited 750,000,000 -
Janata Bank Limited 500,000,000 -
8,000,000,000 3,000,000,000
Total (iii=i+ii) 9,625,908,073 3,163,013,774
2016 2015
Note Taka Taka
17.3 Outside Bangladesh
Secured
Borrowing from International Finance Corporation (IFC) 1,180,666,500 1,177,504,500
Borrowing from MASHREQ BANK PSC-USD 393,555,500 -
Borrowing from Commercial Bank of Qatar - 1,491,505,700
Borrowing from Global Climate Partnership Fund S.A. 787,111,000 392,501,500
Borrowing from ICICI Bank, Hongkong - 549,502,100
Borrowing from RAK BANK, UAE 1,416,799,800 745,752,850
Borrowing from Bank Muscat, Oman 393,555,500 -
Borrowing from FGB, UAE 1,180,666,500 -
Borrowing from ADB 385,684,390 -
5,738,039,190 4,356,766,650
Unsecured - -
5,738,039,190 4,356,766,650
17.4 Maturity grouping of borrowings
Repayable on demand - 52,037,135
Repayable within one month 1,393,555,500 110,976,639
Over one month but within six months 3,530,377,350 2,786,760,650
Over six months but within one year 1,526,995,340 1,177,504,500
Over one year 8,913,019,073 3,392,501,500
15,363,947,263 7,519,780,424
18 Consolidated deposits and other accounts
Current/Al-wadeeah current accounts and other accounts
30,866,336,541 23,201,262,474
30,285,059,627 23,179,887,835
Bills payable
Southeast Bank Capital Services Limited - -
6,548,856,941 2,127,206,788
Savings bank/Mudaraba savings bank deposits
19,700,582,409 18,419,861,332
Fixed deposits/Mudaraba fixed deposits
173,438,929,873 166,704,137,174
229,973,428,850 210,431,093,129
19 Deposits and other accounts
Current/Al-wadeeah current accounts and other accounts
Current/Al-wadeeah current deposits 10,325,582,928 8,580,318,120
Foreign currency deposits 955,223,540 822,460,651
Sundry deposits 19.1 19,564,526,422 13,781,790,639
30,845,332,890 23,184,569,410
Bills payable
Payment order issued 6,544,011,764 2,116,401,698
Demand draft 4,845,177 10,805,090
6,548,856,941 2,127,206,788
Fixed deposits/Mudaraba fixed deposits
Special notice/Mudaraba special notice deposits 25,012,168,173 23,325,303,495
Scheme deposits 31,923,436,868 12,080,726,463
Interest payable on FDR/Scheme 1,891,112,166 2,562,165,069
173,438,929,873 166,704,137,174
230,533,702,113 210,435,774,704
2016 2015
Note Taka Taka
19.1 Sundry deposits
Margin under letter of credit 2,371,615,981 2,579,058,314
Margin against IBP 436,626 388,943
Margin against FBP 61,007,589 106,298,525
Margin under letter of guarantee 959,140,248 753,822,647
Margin under export proceeds 4,336,873 -
Margin against time loan to issue pay order 61,704,891 25,614,612
Deposit held against FDBP/IDBP, export bills etc. 19,456,399 66,253,425
FC held against EDF L/C 10,935,473,081 6,438,473,901
Accounts payable 168,310 58,492
Telegraphic transfer 911,042 975,934
Margin on acceptance 4,955,318,557 3,705,283,123
Remittance awaiting disposal 35,073,275 4,034,291
Others 159,883,550 101,528,432
19,564,526,422 13,781,790,639
19.2 Deposits from banks and others
Inter-bank deposits 19.3 5,583,333,738 11,701,953,424
Other deposits 224,950,368,375 198,733,821,280
230,533,702,113 210,435,774,704
19.3 Inter-bank deposits
EXIM Bank Limited 6,461,754 3,963,579,057

Mercantile Bank Limited 239,288 235,417
AB Bank Limited 2,488,046 6,673,675
Social Islami Bank Limited 4,230,200 244,853,611
BRAC Bank Limited 45,769 45,842
Shahjalal Islami Bank Limited 433,626 218,522,464
Al-Arafa Islami Bank Limited 565,983,998 1,110,397,115
Commercial Bank of Ceylon Plc. 390,000,000 -
Islami Bank Bangladesh Limited 3,208,051,238 4,007,008,533
First Security Islami Bank Limited 7,077,931 8,953,756
Dhaka Bank Limited 213,089 214,739
IFIC Bank Limited 255,406 250,687
United Commercial Bank Limited 500,000,000 1,000,000,000
The City Bank Limited 9,810,644 9,504,551
Citibank N.A. 185,520,586 129,366,266
The Trust Bank Limited 4,963 5,947
NRB Commercial Bank Limited 747,504 710,017
Mutual Trust Bank Limited 781,492 1,153,135
Meghna Bank Limited 988,204 478,612
NCC Bank Limited - 500,000,000
Prime Bank Limited 700,000,000 500,000,000

5,583,333,738 11,701,953,424
19.4 Sector-wise deposits
Government 5,415,989,663 4,339,796,234
Deposit money banks 5,583,333,738 11,701,953,422
Other public 22,754,898,930 19,408,302,537
Foreign currency 975,352,673 889,386,816
Private 195,804,127,109 174,096,335,695
230,533,702,113 210,435,774,704
19.5 Unclaimed Deposits and valuables
Payment Order 482,443 81,351
482,443 81,351
2016 2015
Note Taka Taka
19.6 Analysis of residual maturity grouping of deposits
Inter-bank deposits:
Payable on demand 191,014,838 3,900,228,399
Within one month 1,692,318,900 5,801,725,025
More than one month but less than six months 3,700,000,000 2,000,000,000
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 - -
5,583,333,738 11,701,953,424
Other Deposits:
Payable on demand 3,862,485,162 9,281,332,483
Within one month 45,180,881,100 21,091,924,267
More than one month but less than six months 38,086,500,000 82,224,903,770
More than six months but less than one year 79,864,100,000 27,302,161,680
More than one year but less than five years 41,774,400,000 44,624,741,090
More than five years but less than ten years 16,182,002,113 14,208,757,990
224,950,368,375 198,733,821,280
230,533,702,113 210,435,774,704
20 Consolidated other liabilities
Southeast Financial Services (UK) Limited 18,831,655 19,009,233
19,921,111,321 15,513,931,810
Less: Inter company balance eliminated 1,726,998 -
19,919,384,323 15,513,931,810
21 Other liabilities
Provision for loans and advances/investments 21.1 6,158,284,306 3,863,288,081
Interest suspense account 21.2 3,549,523,832 2,832,654,051
Provision for taxation 21.3 4,998,658,798 3,654,456,280
Obligation under finance lease 21.4 10,265,943 18,654,060
Accrued expenses 11,784,329 9,866,847
Interest payable on borrowings 93,508,887 14,732,390
Accounts payable-Bangladesh Bank 53,746,147 45,147,874
Accounts payable-others 587,702,202 399,098,655
Provision for diminution in the market value of share 59 905,705,624 1,725,241,065
Other provisions 21.5.1 1,326,235,000 972,878,000
Unearned income 388,476,342 680,406,920
Branch adjustment 21.6 592,435,184 -
Withholding tax 895,161,458 855,147,762
Provision for audit fees 1,000,000 1,000,000
19,572,488,052 15,072,571,985
2016 2015
Note Taka Taka
21.1 Provision for loans and advances/investments
A. General
Balance as at 1 January 1,540,000,000 1,334,721,230
Add: Provision made during the year
On standard loans and advances/investments etc. 870,814,544 139,033,953
On Special Mention Account (SMA) 19,185,456 66,244,817
890,000,000 205,278,770
Less: Provision no longer required - -
Balance as at 31 December 2,430,000,000 1,540,000,000
B. Specific
Less: Fully provided debt write off during the year (1,012,890,775) (2,452,261,045)
Add: Recoveries of amounts previously written off 72,709,902 174,604,278
Add: Specific provision for the year 2,360,990,098 2,039,766,952
Less: Recoveries and provisions no longer required - -
Less: Interest waiver during the year (15,813,000) (112,317,088)
Net charge to Profit & Loss A/C 1,404,996,225 (350,206,903)
C. Total provision on loans and advances/investments (A+B) 6,158,284,306 3,863,288,081
* Provision for loans and advances has been kept as per Bangladesh Bank letter reference no: DBI 1/78/2017-1206
dated 27 March 2017.
21.2 Interest suspense account
Add: Amount transferred to "interest suspense" account during the year 1,790,397,963 1,868,832,473
4,623,052,014 4,234,444,985
Less: Amount of interest suspense recovered during the year 892,575,369 869,905,545
Amount written off during the year 117,625,320 511,541,120
Interest waiver during the year 63,327,493 20,344,269
1,073,528,182 1,401,790,934
21.3 Provision for taxation
Provision for current tax 21.3.1 3,607,144,155 2,689,344,079
Deferred tax liabilities 21.3.2 1,391,514,643 965,112,201
4,998,658,798 3,654,456,280
21.3.1 Provision for current tax
Provision
Provision made during the year 2,765,000,000 2,300,000,000

13,731,854,123 14,146,498,876
Adjustments made during the year - (3,179,644,753)
Advance tax
Paid during the year 1,847,199,924 2,535,875,626
10,124,709,968 11,476,133,347
Adjustments made during the year - (3,198,623,303)
Net balance as at 31 December 3,607,144,155 2,689,344,079
Provision for current tax of Tk. 2,765,000,000 has been made @ 40.00% as prescribed by Finance Act 2016 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 BAS 12 "Income Tax".
2016 2015
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 21.3.3.1 275,536,360 210,536,360
Revaluation reserve of HTM securities 21.3.3.2 4,060,523 12,903,577
Revaluation reserve of HFT securities 21.3.3.3 370,245,496 -
1,391,514,643 965,112,201
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.
2016 2015
Taka Taka
21.3.3 Movement of deferred tax liabilities
Balance as at 1 January 965,112,201 839,075,601

Provision made for deferred tax liabilities
Charged to profit and loss account 65,000,000 140,000,000
Charged to revaluation reserve 371,434,778 4,768,630
436,434,778 144,768,630
1,401,546,979 983,844,231
Adjustment made during the year for revaluation reserve (10,032,336) (18,732,030)
Balance as at 31 December 1,391,514,643 965,112,201
2016 2015
Note Taka Taka
21.3.3.1 Deferred tax on fixed assets- except land and
revaluation reserve of buildings
Charge to profit and loss account 65,000,000 140,000,000
Balance as at 31 December 275,536,360 210,536,360
21.3.3.2 Deferred tax on revaluation reserve of HTM securities

Charge to revaluation reserves 1,189,282 4,768,630
Adjustment during the year (10,032,336) (18,732,030)
21.3.3.3 Deferred tax on revaluation reserve of HFT securities
Balance as at 1 January - -
Charge to revaluation reserves 370,245,496 -
Adjustment during the year -
Balance as at 31 December 370,245,496 -
21.4 Obligation under finance lease

Addition during the year - -
18,654,060 34,140,945
21.4.1 Aging analysis of liabilities under finance lease
Minimum lease Financial charge for Principal

payment future periods outstanding
Taka Taka Taka
2016
Payable within 1 year 9,258,860 1,108,945 8,149,915
Payable more than 1 year but less than 2 years 2,318,297 202,269 2,116,028
Payable more than 2 years but less than 5 years - - -
11,577,157 1,311,214 10,265,943
2015
Payable within 1 year 11,148,047 2,656,495 8,491,552

Payable more than 1 year but less than 2 years 9,258,860 1,108,945 8,149,915
Payable more than 2 years but less than 5 years 2,214,862 202,269 2,012,593
22,621,769 3,967,709 18,654,060
2016 2015
Note Taka Taka
21.5 Other provisions charged to profit and loss

Provision for other assets 21.5.1 (A) 92,735,000 10,035,106
Provision for good borrowers 21.5.1 (B) 23,000,000 11,878,000
Provision for off-balance sheet exposures 21.5.1 (C) 249,500,000 (19,650,000)
365,235,000 2,263,106
2016 2015
Note Taka Taka
21.5.1 Other Provisions
A) Provision for other assets
Addition during the year 92,735,000 10,035,106
163,735,000 71,000,000
Adjustment during the year - -
B) Provision for good borrowers

Balance as at 1 January 11,878,000 -
34,878,000 11,878,000
Adjustment during the year (11,878,000) -
C) Provision for off-balance sheet exposures

Provision made during the year 249,500,000 -
1,139,500,000 909,650,000
Adjustments made during the year - (19,650,000)
Balance as at 31 December 1,139,500,000 890,000,000
D) Total other provisions (A+B+C) 1,326,235,000 972,878,000
21.6 Branch adjustment (credit)
General accounts debit 928,625,816 -

General accounts credit 1,521,061,000 -
592,435,184 -
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 December 2016 are
given below:
No. of unrespondent entries Unrespondent entries (Taka)

Debit Credit Debit Credit
Upto 3 months 594 1,526 928,625,816 1,521,061,000

Over 3 months but within 6 months - - - -
Over 6 months but within 1 year - - - -
Over 1 year but within 5 years - - - -
594 1,526 928,625,816 1,521,061,000
2016 2015
Note Taka Taka
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
538,785,206 ordinary shares of Tk 10 each issued as bonus shares 5,387,852,060 5,387,852,060

916,950,176 9,169,501,760 9,169,501,760
22.3 Dividends
The following dividends were declared and paid by the Bank for the year ended 31 December.
1.50 Taka per ordinary share for 2015 (1.50 Taka per ordinary
1,375,425,264 1,375,425,264
share for 2014
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.
2.00 Taka per ordinary share for 2016 and 1.50 Taka per ordinary
1,833,900,352 1,375,425,264
share for 2015
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
22.5 Classification of shareholders by holding
Number of holders % of total holding

2016 2015 2016 2015
Less than 500 shares 12,031 14,760 0.22 0.26

501 to 5,000 shares 21,160 24,891 3.91 4.58
5,001 to 10,000 shares 2,744 3,149 2.10 2.40
10,001 to 20,000 shares 1,521 1,791 2.31 2.71
20,001 to 30,000 shares 471 538 1.27 1.45
30,001 to 40,000 shares 217 252 0.82 0.95
40,001 to 50,000 shares 121 141 0.60 0.70
50,001 to 1,00,000 shares 309 327 2.45 2.56
1,00,001 to 10,00,000 shares 311 311 9.63 9.91
Over 10,00,000 shares 124 125 76.69 74.48
39,009 46,285 100.00 100.00
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 2016
As at 31
Sl. As at 1 January
Name of the directors Status December
no. 2016
2016
1 Mr. Alamgir Kabir, FCA Chairman 19,694,672 19,944,672
"Mr. Ragib Ali
2 (ceased to be Director on and from March Vice Chairman 28,026,291 28,026,291
8, 2017)"
3 Mr. M. A. Kashem Director 20,307,060 20,307,060
4 Mr. Azim Uddin Ahmed Director 25,490,735 25,490,735
5 Mrs. Duluma Ahmed Director 19,082,742 19,082,742
6 Mrs. Jusna Ara Kashem Director 18,339,525 18,339,525
7 Mr. Md. Akikur Rahman Director 18,443,731 18,443,731
8 Mrs. Rehana Rahman Director 18,344,145 18,844,145
9 Mrs. Sirat Monira Director 120,547 120,547
"Mr. Abdul Hye
(Representing Karnafuli Tea Co. Limited)
10 Director 162,420 162,420
(Ceased to be Director on and from March
8, 2017)"
Independent
11 Mr. A. H. M. Moazzem Hossain - -
Director
Independent
12 Dr. Quazi Mesbahuddin Ahmed - -
Director
Managing Director
13 Mr. M. Kamal Hossain - -
(Current Charge)
168,011,868 168,761,868
2016 2015
Note Taka Taka
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 guide-
line December 2014 vide BRPD Circular no. 18 dated 21 December 2014.
Common equity Tier-1 capital (Going Concern Capital)
Paid up capital 9,169,501,760 9,169,501,760
Share premium - -
General reserve 25 247,650,000 247,650,000
21,758,975,955 21,256,787,000
Add: Additional Tier 1 capital - -
Less: Regulatory adjustments 108,599,195 64,641,458
A) Total common equity Tier 1 capital 21,650,376,760 21,192,145,542
Tier 2 Capital (Gone -Concern Capital)

General provision maintained against unclassified loan/investments 2,430,000,000 1,540,000,000
General provision on off-balance sheet items 1,139,500,000 890,000,000
Asset revaluation reserve 2,101,404,750 2,101,404,750
Revaluation reserve of Government securities 234,027,984 234,027,984
13,304,932,734 7,765,432,734
Total Tier 2 capital 12,370,759,640 7,298,346,187
B) Total capital 34,021,136,400 28,490,491,729
C) Risk Weighted Assets (RWA)
Credit Risk
On-balance sheet 197,023,731,313 171,797,949,395
Off-balance sheet 52,501,153,245 47,096,419,890
249,524,884,558 218,894,369,285
Market risk 10,687,308,524 9,476,714,296
Operational risk 19,045,800,808 17,229,996,177
Total RWA 279,257,993,890 245,601,079,758
D) Required common equity Tier 1 Capital 12,566,609,725 11,052,048,589
Required Tier 1 Capital (5.5% of RWA) 15,359,189,664 13,508,059,387
E) Required total capital 10.625% of RWA (2015: 10%) 29,671,161,851 24,560,107,976

F) Surplus common equity Tier 1 Capital(A-D) 9,083,767,035 10,140,096,953
G) Surplus total capital (B-E) 4,349,974,549 3,930,383,753
Capital to risk-weighted assets ratio:
On common equity Tier 1 capital against standard of minimum 4.5% 7.75% 8.63%
On Tier 1 capital - against standard of minimum 5.5% 7.75% 8.63%
On total capital - against standard of minimum 10.625% (2015:10%) 12.18% 11.60%
2016 2015
Note Taka Taka
22.9 Leverage Ratio of the Bank
A) Tier 1 capital considering all regulatory adjustments 21,650,376,760 21,192,145,542
B) On-balance sheet exposure 288,205,418,780 257,929,754,083
C) Off-balance sheet exposure 65,343,127,141 53,959,699,503
D) Deduction from on and off balance sheet
108,599,195 64,641,458
exposure / Regulatory adjustment
E) Total exposure (B+C-D) 353,439,946,726 311,824,812,128
Leverage ratio (A/E) 6.13% 6.80%
Liquidity coverage ratio 118.50% 140.77%
Net stable funding ratio 109.53% 107.60%
22.10 Capital to Risk weighted Asset Ratio (CRAR) of the Group
Common Equity Tier 1 Capital
Paid up capital 9,169,501,760 9,169,501,760
Share premium - -
General reserve 25 247,650,000 247,650,000
Non- controlling interest 29 10,003,160 9,428,284
21,794,122,394 21,275,828,359
Add: Additional Tier 1 capital - -
A) Total common equity Tier 1 capital 21,685,523,199 21,211,186,901
Tier 2 capital (Gone- Concern Capital)
General provision maintained against unclassified loan/investments 2,430,000,000 1,540,000,000
General provision on off-balance sheet items 1,139,500,000 890,000,000
Asset revaluation reserve 2,101,404,750 2,101,404,750
Revaluation reserve of Government securities 234,027,984 234,027,984
13,304,932,734 7,765,432,734
Total Tier 2 capital 12,370,759,640 7,298,346,187
B) Total capital 34,056,282,839 28,509,533,088

C) Risk weighted assets (RWA)
Credit risk
On-balance sheet 193,740,348,940 169,788,524,420
Off-balance sheet 52,501,153,245 47,096,419,890
246,241,502,185 216,884,944,310
Market risk 15,004,950,584 13,052,166,626
Operational risk 19,155,835,724 17,313,773,484
Total RWA 280,402,288,493 247,250,884,420
D) Required common equity Tier 1 capital 12,618,102,982 11,126,289,799
Required Tier 1 capital (5.5% of RWA) 15,422,125,867 13,598,798,643
E) Required total capital 10.625% of RWA (2015: 10%) 29,792,743,152 24,725,088,442
F) Surplus common equity Tier 1 capital (A-D) 9,067,420,217 10,084,897,102
G) Surplus total capital (B-E) 4,263,539,686 3,784,444,646
Capital to risk- weighted asset ratio:
On common equity Tier 1 capital - against standard of minimum 4.5% 7.73% 8.57%
On Tier 1 capital - against standard of minimum 5.5% 7.73% 8.57%
On total capital-against standard of minimum 10.625% of RWA (2015:10%) 12.15% 11.52%
2016 2015
Note Taka Taka
22.11 Leverage ratio of the Group
A) Tier 1 capital considering all regulatory adjustments 21,685,523,199 21,183,282,293
B) On-balance sheet exposure 288,083,485,568 258,394,742,372
C) Off-balance sheet exposure 65,343,127,141 53,959,699,503
D) Deduction from on and off balance sheet
108,599,195 64,641,458
exposure /Regulatory adjustment
E) Total exposure (B+C-D) 353,318,013,514 312,289,800,417
Leverage ratio (A/E) 6.14% 6.78%
Liquidity coverage ratio 118.50 140.77%
Net stable funding ratio 109.53% 107.60%
23 Statutory reserve
Addition during the year 272,692,095 1,104,495,904
24 Revaluation reserve
Revaluation reserve of land and buildings:
4,944,481,764 4,944,481,764
Deferred tax liabilities (741,672,265) (741,672,265)
Revaluation reserve on HTM securities:
34,035,831 83,376,193
9,771,453 31,062,627
Deferred tax liabilities (4,060,523) (12,903,577)
Revaluation reserve on HFT securities:
Balance as at 1 January 1,747,159,502 427,129,047
Addition during the year 1,437,433,310 2,942,233,152
3,184,592,812 3,369,362,199
Adjustment during the year (2,258,979,069) (1,622,202,697)
925,613,743 1,747,159,502
Deferred tax liabilities (370,245,496) -

Balance as at 31 December 555,368,247 1,747,159,502
4,763,888,676 5,968,128,051
25 Other reserves
General reserve:
26 Foreign currency translation reserve
Balance as at 1 January 27,870,748 243,022
(Adjustments)/addition during the year (3,421,502) 27,627,726
The translation reserve comprises all foreign currency differences arising from the translation of the financial
statements of foreign operations.
2016 2015
Note Taka Taka
27 Consolidated retained earnings

Southeast Bank Capital Services Limited (36,442,114) (94,939,716)
Southeast Financial Services (UK) Ltd (21,927,930) (22,785,689)
Southeast Financial Services (Australia) Pty Ltd (16,753,827) (17,223,301)
Southeast Exchange Company (South Africa) Pty Ltd* 14,707,102 1,001,733
Less: Elimination for impairment of investment in subsidiary 85,560,048 143,560,048
3,196,967,474 2,951,940,410
* Opening retained earnings of Southeast Exchange Company (South Africa) Pty Ltd has been adjusted to
conform with its audited financial statements.
28 Retained earnings

Currency translation differences 807,996 945,864
Prior year adjustment 435,000 300,000
2,943,570,331 2,639,768,983
Retained surplus for the year 2,143,679,128 1,977,983,616
5,087,249,459 4,617,752,599
Less:
Transfer to SEBL Foundation* 300,000,000 300,000,000
Transfer to Employees Welfare Fund* 200,000,000 -
Transfer to Green Award Trust* 40,000,000 -
Cash dividend paid 1,375,425,264 1,375,425,264
1,915,425,264 1,675,425,264
Retained earnings carried forward 3,171,824,195 2,942,327,335
* The Board of Directors in its 504th meeting held on 29 December 2016 has decided to transfer Tk. 30 crore to
SEBL Foundation, Tk. 20 crore to Staff Welfare Fund and Tk. 4 crore to Southeast Bank Green Award Trust from
retained earnings of the Bank.
29 Non-controlling interest
Paid up capital 5,500,000,000 1,500,000,000

Retained earnings (36,508,959) (95,581,382)
Total net assets 5,463,491,041 1,404,418,618
Non-controlling interest 0.183091% (2015: 0.67133%) of net assets 10,003,160 9,428,284
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 28,774,137,644 23,373,332,515
Acceptance under Letters of Credit -back to back 15,039,415,997 12,850,087,695
43,813,553,641 36,223,420,210
30.2 Letters of guarantee
Local 12,150,518,547 10,266,430,750

Foreign 3,003,598,053 3,128,810,166
15,154,116,600 13,395,240,916
2016 2015
Note Taka Taka
30.2.1 Balance for which the Bank is contingently liable
in respect of guarantee issued favouring:
Directors or officers 4,857,301 4,783,060
Government - -
Banks and other financial institutions 51,189,342 81,078,227
Others 15,098,069,957 13,309,379,629
15,154,116,600 13,395,240,916
30.3 Irrevocable Letters of Credit (L/C)

Back to back L/C 13,920,027,996 11,323,226,669
Others 18,961,275,681 13,669,153,288
32,881,303,677 24,992,379,957
30.4 Bills for collection
Local 8,626,271,866 5,856,105,661

Foreign 9,204,033,000 6,956,639,068
17,830,304,866 12,812,744,729
30.5 Other contingent liabilities
Value of Bangladesh Sanchaypatra & others 1,474,684,000 1,098,459,000
31 Income statement
Income:
Interest, discount and similar income 21,860,782,434 22,691,325,422
Dividend income 171,780,691 131,633,489
Fees, commission and brokerage 1,716,151,498 1,713,156,821
Gains less losses arising from dealing securities (92,035,077) 204,718,261
Gains less losses arising from investment securities 62,766,457 15,793,515
Gains less losses arising from dealing in foreign currencies 1,131,546,418 1,010,846,578
Other operating income 630,611,620 518,566,500
25,481,604,041 26,286,040,586
Expenses:
Interest, fees and commission 12,785,664,559 14,652,724,337
Administrative expenses 2,907,702,764 2,372,891,418
Other operating expenses 1,011,019,434 953,168,351
Depreciation on banking assets 279,400,188 263,312,640
16,983,786,945 18,242,096,746
Income over expenses 8,497,817,096 8,043,943,840
32 Consolidated interest income/profit on

investments
Southeast Financial Services (Australia) Pty Ltd - 23,843
17,090,755,150 18,046,940,600
16,972,326,566 17,794,795,961
2016 2015
Note Taka Taka
33 Interest income/profit on investments
Interest on loans and advances (Conventional Banking):
Interest on loans and advances 15,723,721,273 16,574,625,488
Interest on placement with other banks and financial institutions 235,799,541 276,652,770
Interest on foreign currency balances 41,032,156 15,215,538
16,000,552,970 16,866,493,796
Profit on investment (Islamic Banking):
Profit on investments 960,821,860 965,947,429
Profit on placement with other banks 27,503,565 85,855,000
988,325,425 1,051,802,429
16,988,878,395 17,918,296,225
34 Consolidated interest paid/profit shared on

12,883,545,047 14,908,482,641
12,765,116,463 14,656,338,002
35 Interest paid/profit shared on deposits and borrowings etc.
Interest paid on deposits (Conventional Banking):
Interest on deposits 11,055,657,345 12,622,563,921
Interest on borrowings 632,784,047 542,801,433
Interest on repurchase agreement (repo) 17,128,657 72,434,392
Interest on refinance 6,122,088 10,285,260
Interest on foreign bank accounts 688,517 194,742
11,712,380,654 13,248,279,748
Profit shared on deposits (Islamic Banking):
Profit paid on deposits 1,033,652,397 1,343,581,570
Profit on refinance borrowings 39,631,508 60,863,019
1,073,283,905 1,404,444,589
12,785,664,559 14,652,724,337
36 Consolidated investment income
5,079,606,748 5,158,537,123
37 Investment income
Interest income from Government securities 37.1 4,850,203,187 4,773,029,197
Capital gain on Government securities 37.2 165,315,064 719,429,991
Revaluation gain (loss) on Government securities 37.3 (257,350,141) (514,711,730)
Dividend on investment in shares 171,780,691 131,633,489
Gain on sale of investment in shares 62,766,457 15,793,515
Interest income from investment in bonds 21,700,852 -
5,014,416,110 5,125,174,462
37.1 Interest income from Government securities
Interest on treasury bills 50,888,907 239,535,791
Interest on treasury bonds/T&T bonds 5,212,036,586 4,835,121,203
Interest on Bangladesh Bank bills 12,775,336 6,711,914
5,275,700,829 5,081,368,908
Interest expenses on treasury bills - -
Interest expenses on treasury bonds (425,497,642) (308,339,711)
(425,497,642) (308,339,711)
Net interest income from Government securities 4,850,203,187 4,773,029,197
2016 2015
Note Taka Taka
37.2 Capital gain on Government securities
Capital gain on treasury bills 33,613,398 98,425,984
Capital gain on treasury bonds/T&T bonds 470,308,910 731,661,716
503,922,308 830,087,700
Capital loss on treasury bills (10,522,317) (8,331,996)

Capital loss on treasury bonds/T&T bonds (328,084,927) (102,325,713)
(338,607,244) (110,657,709)
Net capital gain on Government securities 165,315,064 719,429,991
37.3 Revaluation gain (loss) on Government securities
Revaluation gain on treasury bills 34,853,444 25,849,050

Revaluation gain on treasury bonds 1,123,041,580 449,723,766
Revaluation gain on Bangladesh Bank bills 331,058 19,708
1,158,226,082 475,592,524
Revaluation loss on treasury bills (36,796,312) (22,675,968)

Revaluation loss on treasury bonds (1,378,764,241) (967,628,286)
Revaluation loss on Bangladesh Bank bills (15,670) -
(1,415,576,223) (990,304,254)
Net revaluation gain (loss) on Government securities (257,350,141) (514,711,730)
38 Consolidated commission, exchange and brokerage

Southeast Bank Capital Services Limited 442,368 154,998
Southeast Financial Services (Australia) Pty Ltd 283,051 715,009
2,903,034,957 2,759,457,588
39 Commission, exchange and brokerage

Commission and brokerage 1,716,151,498 1,713,156,821
Exchange gain 39.1 1,131,546,418 1,010,846,578
2,847,697,916 2,724,003,399
39.1 Exchange gain
Exchange gain from revaluation/trade of foreign currency 1,084,482,265 979,255,985
Exchange gain from credit card 47,064,153 31,590,593
1,131,546,418 1,010,846,578
40 Consolidated other operating income

Southeast Bank Limited 41 630,611,620 518,566,500
Southeast Financial Services (UK) Ltd 956,063 1,503,333
666,189,932 551,291,657
662,602,892 547,933,577
2016 2015
Note Taka Taka
41 Other operating income
Remittance fees 383,507 232,871
Service and incidental charges 75,606,799 68,803,075
Other fees - telephone and postage 48,779,453 41,362,545
Income from ATM services 23,717,399 14,540,945
Income from credit card 84,365,797 69,282,425
Income from retail banking 6,203,956 4,377,757
Other Fees - SWIFT and others 187,078,571 164,828,036
Gain on sale of fixed assets 41.1 4,504,032 853,657
Income from telecash 1,544,548 432,573
Miscellaneous income 198,427,558 153,852,616
630,611,620 518,566,500
41.1 Gain on sale of fixed assets
Cost:
Motor vehicles 1,950,826 2,956,000
Furniture and fixtures - 116,769
Office appliances 43,200 -
3,719,364 4,576,959
Accumulated depreciation:
Motor vehicles 1,882,200 1,675,067
Furniture and fixtures - 41,123
Office appliances 43,200 -
3,280,517 2,914,205
Written down value 438,847 1,662,754
Sale proceeds of the above fixed assets 4,942,879 2,516,411
Gain on sale of fixed assets 4,504,032 853,657
42 Consolidated salaries and allowances

1,741,464,516 1,423,681,923
43 Salaries and allowances
Basic salary 859,905,510 654,328,225

Allowances 528,545,144 459,126,067
Bonus 259,398,089 228,817,202
Provident fund 72,938,920 57,112,312
1,720,787,663 1,399,383,806
44 Consolidated rent, taxes, insurance, electricity etc.

804,623,318 661,618,830
801,036,278 658,260,750
2016 2015
Note Taka Taka
45 Rent, taxes, insurance, electricity etc.
Rent, rates and taxes 506,634,063 391,707,570
Insurance 175,031,301 164,455,956
Electricity and lighting 99,842,598 88,123,123
781,507,962 644,286,649
46 Consolidated postage, stamp, telecommunication etc.
Southeast Financial Services (UK) Ltd 183,062 310,829
166,450,976 147,329,178
47 Postage, stamp, telecommunication etc.
Postage 44,488,954 37,338,508
Telephone /Telex 14,263,286 12,711,247
Electronic banking service 3,461 125,000
FC Charge (Nostro) 5,409,679 2,605,770
VSAT on-line 45,683,245 42,060,483
Reuters services 1,962,811 1,879,528
165,740,473 146,538,853
48 Consolidated stationery, printing, advertisements etc.

132,234,398 112,623,969
49 Stationery, printing, advertisements etc.
Office stationery 21,152,613 18,314,078
Printing stationery 41,971,518 31,346,737
Security stationery 22,542,957 17,357,258
Computer stationery 12,055,150 12,003,521
Publicity and advertisement 32,935,601 32,467,524
130,657,839 111,489,118
50 Managing Director's salary and fees

Basic salary 4,793,333 3,900,000
House rent 1,497,500 1,200,000
House maintenance 895,833 600,000
Leave fare concession 1,497,500 1,200,000
Utility 595,000 -
Special allowance 895,834 900,000
Bonus 1,800,000 1,650,000
11,975,000 9,450,000
51 Consolidated directors' fees
2,912,276 2,650,734
2016 2015
Note Taka Taka
52 Directors' fees
Directors' fees 2,344,000 1,649,000

Directors' haltage and travelling 353,276 961,734
2,697,276 2,610,734
Each Director is paid TK. 8,000/-from 15 October 2015 per meeting per attendance.
53 Consolidated auditors' fees
Southeast Bank Limited 1,000,000 1,000,000
Southeast Exchange Company (South Africa) Pty Ltd 559,917 -
1,599,917 1,040,000
54 Consolidated depreciation and repair
Depreciation:
308,671,373 279,977,291
Repair:
Southeast Bank Capital Services Limited 1,255,742 673,000
94,931,360 59,199,380
403,602,733 339,176,671
55 Depreciation and repair of bank's assets
A. Depreciation:
Buildings 53,357,385 48,619,767
Professional and reference books - 95,360
Computer 19,968,426 13,529,237
ATM Booth 20,857,361 21,141,517
Motor vehicles 15,265,650 21,056,238
279,400,188 263,312,640
B. Repair:
Office and electrical appliances 23,976,704 21,824,795
Motor vehicles 4,258,022 3,640,520
Repair, maintenance and utilities 29,132,178 26,912,229
93,336,551 58,132,258
Total (C=A+B) 372,736,739 321,444,898
56 Consolidated other expenses
Southeast Bank Limited 57 1,010,435,457 951,884,557
Adjustment for impairment loss of investment in subsidiary 58,000,000 (95,000,000)
1,087,356,457 874,406,519
2016 2015
Note Taka Taka
57 Other expenses
Security and cleaning 148,841,877 127,232,340

Entertainment 116,860,733 46,674,147
Car expenses 164,676,795 130,489,223
Books and periodicals 898,728 976,679
Subscription and donation 115,669,497 60,498,693
Travelling expenses 11,164,330 9,859,639
Finance charge on leased assets 3,035,011 4,944,097
Conveyance 12,223,285 11,633,629
Fuel 8,897,361 8,397,740
Training/seminar 5,739,140 3,448,952
Uniforms and apparels 5,307,757 4,007,760
Medical expenses 104,721 74,702
Gratuity 45,000,000 62,000,000
Professional expenses 6,360,999 6,839,375
Expenses for CIB report 714,180 544,370
Expenses regarding credit card 38,096,943 50,265,397
Expenses regarding retail banking & agriculture 72,976,339 60,970,927
Expenses regarding call centre 1,281,797 937,221
Expenses relating to ATM services 14,747,512 3,788,855
Expenses regarding mobile banking services-Telecash 8,001,219 2,926,838
Impairment loss from investment in subsidiary (58,000,000) 95,000,000
Miscellaneous 287,837,233 260,373,973
1,010,435,457 951,884,557
58 Consolidated provision for diminution in value of investments
Southeast Bank Limited 59 (364,779,225) 274,155,492

Southeast Bank Capital Services Limited (38,821,526) (4,673,593)
(403,600,751) 269,481,899
59 Provision for diminution in value of investments
Dealing securities- Quoted

Required provision for the year 9.7 905,705,624 1,725,241,065
Provision has already been maintained last year (1,725,241,065) (1,457,858,600)
Provision released for disposal of shares during the year 454,756,216 6,773,027
Provision maintained during the year (364,779,225) 274,155,492
60 Consolidated provision for taxation

Current tax:
2,790,553,126 2,308,068,504
Deferred tax:
Southeast Exchange Company (South Africa) Pty Ltd (28,735) -
64,971,265 140,000,000
2,855,524,391 2,448,068,504
61 Provision for taxation
Current tax 2,765,000,000 2,300,000,000
Deferred tax 65,000,000 140,000,000
2,830,000,000 2,440,000,000
2016 2015
Note Taka Taka
62 Consolidated cash received from other operating
activities
658,098,860 547,079,920
63 Cash received from other operating activities

Other Fees-Telephone and Postage 48,779,453 41,362,545
Income from ATM services 23,717,399 14,540,945
Income from Credit Card 84,365,797 69,282,425
Income from Retail Banking 6,203,956 4,377,757
Income from Telecash 1,544,548 432,573
626,107,588 517,712,843
64 Consolidated payments for other operating activities

2,171,105,188 1,847,880,920
65 Payments for other operating activities
Rent rates and taxes 864,196,369 754,051,071

Postage 165,740,473 146,538,853
Directors' fees 2,697,276 2,610,734
Repairs 93,336,551 58,132,258
Legal expense 583,977 1,283,794
Audit fees 1,000,000 1,000,000
Other expenses 1,006,556,367 856,884,557
2,134,111,013 1,820,501,267
66 Consolidated earnings per share
Net profit after tax for the year ended 31 December (Taka) 2,434,965,442 3,070,132,933
Number of ordinary shares outstanding 916,950,176 916,950,176
Earnings per share (EPS) (Taka) 2.66 3.35
67 Earnings per share

Net profit after tax for the year ended 31 December (Taka) 2,416,371,223 3,082,479,520
Number of ordinary shares outstanding 916,950,176 916,950,176
Earnings per share (EPS) (Taka) 2.64 3.36
68 Group entities
Country of Ownership interest %

Name of subsidiary
incorporation 2016 2015
Southeast Bank Capital Services Limited Bangladesh 99.816909 99.32867
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
69 General
69.1 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 lastly re-constituted by the Board of Directors in its 486th meeting held on 11 April
2016. The membership and attendance of the members of the Audit Committee are given below:
Sl. Meetings
Name Position Attendance Remarks
no. held
Mr. A.H.M. Moazzem Hossain a) The Members who could
1 Chairman 5 5 not attend any meeting were
granted leave of absence.
2 Mrs. Duluma Ahmed Member 5 4 b) Ms. Rehana Rahman was
3 Mrs. Jusna Ara Kashem Member 5 5 appointed as member of the
Audit Committee on 11-04-
4 Mrs. Rehana Rahman Member 5 4 2016.
c) Ms. Sirat Monira ceased to be
5 Mrs. Sirat Monira Member 5 1 member of the Audit Committee
on 11-04-2016.
Dr. Quazi Mesbahuddin d) Dr. Quazi Mesbahuddin
6 Ahmed (Independent Member 5 3 Ahmed was appointed as
Director) member of the Audit Committee
on 11-04-2016.
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. Status with the

no. Name Educational Qualification
committee
1 Mr. A.H.M. Moazzem Hossain Chairman MA in Economics
2 Mrs. Duluma Ahmed Member Graduate

3 Mrs. Jusna Ara Kashem Member HSC
4 Mrs. Rehana Rahman Member Graduate
5 Mrs. Sirat Monira Member MSS
6 Dr. Quazi Mesbahuddin Ahmed Member B.A (Hons), M.A., MEC, MSC., Ph.
D. in Economics
Terms of reference of the Audit Committee
i) Mr. A.H.M. Moazzem Hossain, in his capacity as the Independent Director, shall be the Chairman of the
Audit Committee.
ii) Presence of 03 (three) members shall form quorum.
iii) The tenure of office of the Audit Committee shall be for 3 years.
iv) The Company Secretary shall act as Secretary to the Audit Committee.
v) 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.SEC/
CMRRCD/2006-158/134/Admin 144 dated 07 August, 2012 of Bangladesh Securities and Exchange
Commission (BSEC).
vi) 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 of rules of both the Bank and its regulators.
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, corporate governance, internal control, green banking, and environmental and climate change risks.
The added roles of the Audit Committee are to:
i)
Overseeing the financial reporting process.
ii) Monitoring choice of accounting policies and principles.
iii) Monitoring Internal Control Risk management process.
iv) Overseeing hiring and performance of external auditors.
v) Review the annual financial statements before submission to the Board for approval.
vi) Reviewing the quarterly and half yearly financial statements before submission to the Board for approval
vii) Reviewing the adequacy of internal audit functions
viii) Reviewing statement of significant related party transactions submitted by the management.
ix) Reviewing Management Letters/ Letter of internal control weakness issued by external auditors.
x) Reviewing the raising of fund through repeat public offering/ rights issue and its use and application.
xi) Monitoring internal control process.
xii) Maintaining oversight regulatory compliance, ethics and whistleblower hotlines.
xiii) Reviewing Audit Committee’s own terms of reference.
69.2 Risk Management Committee of the Board of Directors of the Bank
The Bank Company (Amendment) Act-2013, inter alia, provided for constitution of a Risk Management
Committee of the Board of Directors of every Bank. Bangladesh Bank issued BRPD Circular No.11 dated
October 27, 2013 delineating, among other things, the composition and functions of the Risk Management
Committee especially in the areas of Bank’s core risk-related issues.
Feature and composition
The Board of Directors of the Bank in its 486th meeting held on April 11, 2016 re-constituted the Risk Management
Committee comprising the following Directors of the Bank. One Independent Director was included in the
Committee. The membership of the Risk Management Committee of the Board of Directors of the Bank and
members’ attendance in its meetings in 2016 are given below:
Sl. Meetings
no. held
1 Mr. Alamgir Kabir, FCA Chairman 4 4 The Members
2 Mr. Ragib Ali Member 4 3 who could
(ceased to be Director on and from not attend any
March 8, 2017) meeting showing
genuine ground
3 Mr. M. A. Kashem Member 4 4 were granted
4 Mr. Azim Uddin Ahmed Member 4 4 leave of absence
5 Mr. A. H. M. Moazzem Hossain Member 4 4
Structure of the Risk Management Committee (RMC)

i) The Chairman of the Board of Directors of the Bank shall be the chairman of the RMC.
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 RMC.
Functions of the Risk Management Committee
The broad functional areas of the Risk Management Committee are the following:
i) Risk assessment and risk control strategy.

ii) Review of risk policy and its approval.
iii) Review of the information kept by the Management of the Bank and approval of reporting system.
iv) Overseeing the overall implementation of Risk Management Policy of the Bank.
v) Reporting its decisions and recommendations to the Board.
vi) Overseeing the implementation of related guidelines issued by the regulatory bodies from time to time.
69.3 Related party/(ies)
Particulars of Directors of the Bank as at 31 December:

% of % of
Sl. shares shares
Name of persons Designation Present address
No. as at 31 as at 31
Dec 2016 Dec 2015
1 Mr. Alamgir Kabir, FCA Chairman 226, Dilu Road, New Eskaton,
2.18% 2.15%
Dhaka
2 Mr. Ragib Ali Vice House No.06, Road No.76,
(ceased to be Director on and Chairman Gulshan, Dhaka 3.06% 3.06%
from March 8, 2017)
3 Mr. M. A. Kashem Director 73/C, Gulshan Avenue,
2.21% 2.21%
Dhaka-1212
4 Mr. Azim Uddin Ahmed Director Plot No.51, Road No.09,
2.78% 2.78%
Block-F,Banani, Dhaka
5 Mrs. Duluma Ahmed Director Plot No.51, Road No.09,
2.08% 2.08%
Block-F,Banani, Dhaka
6 Mrs. Jusna Ara Kashem Director 73/C, Gulshan Avenue,
2.00% 2.00%
Dhaka-1212
7 Mr. Md. Akikur Rahman Director Sonarpara, Nobarun-227,
2.01% 2.01%
Sylhet
8 Mrs. Rehana Rahman Director House No.10, Road No.68,
2.06% 2.00%
Gulshan, Dhaka
9 Mrs. Sirat Monira Director 226, Dilu Road (Ground
0.01% 0.01%
Floor),New Eskaton, Dhaka
10 Karnafuli Tea Company Limited Director 67, Motijheel C/A (2nd floor),
(represented by Mr. Abdul Hye) Dhaka-1000
0.02% 0.02%
(ceased to be Director on and

from March 8, 2017)
11 Mr. A. H. M. Moazzem Hossain Independent Apartment # A-16, Building
Director # 03, Ramna Estate Complex, - -
Bara Moghbazar, Dhaka-1217
12 Dr. Quazi Mesbahuddin Ahmed Independent Flat No.C/3, House No.01,
Director Road No.36, Gulshan, - -
Dhaka-1212
13 Mr. M. Kamal Hossain Managing Southeast Bank Limited,
Director Head Office, 52-53 Dilkusha
- -
(Current C/A, Dhaka-1000
Charge)
*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 and
Mr. Abdul Hye holds 0.01% and 0.02% respectively of total outstanding share who became Director(s) from B
Group i.e. public shareholders.
69.3.1 Related party transactions

During the year 2016, 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 2016 2015 2016 2015
Taka Taka Taka Taka
Asia Insurance Common Insurance
48,939,025 51,428,563 - -
Ltd. Director coverage
Southeast Bank Share capital 4,000,000,000 500,000,000 5,489,930,000 1,489,930,000

Subsidiary
Capital Services Interest 118,428,584 252,144,639 - -
company
Limited Loan - - 10,674 2,863,903,191
Southeast
Subsidiary
Financial Share capital - - 38,493,247 38,493,247
company
Services (UK) Ltd
Southeast
Financial
Subsidiary
Services Share capital 36,297 - 25,063,712 25,027,415
company
(Australia) Pty
Ltd
Southeast
Exchange Subsidiary
Share capital - - 50,103,110 50,103,110
Company (South company
Africa) Pty Ltd
69.3.2 Loans and advances to directors and their related concern
Nature of Amount
Name of party Name of the director Related by Status
transaction in Taka
Mr. Azim Uddin Ahmed Bank
Monorom Traders Director 4,783,061 Regular
Mrs. Duluma Ahmed Guarantee
Mr. Ragib Ali Bank

Rajnagar Tea Company Director 41,349
Mr. Abdul Hye Guarantee Regular
Ltd.
(Both of them ceased to be Director on and from March 8, 2017)
Mr. Ragib Ali Bank
Director 32,891
The Sylhet Tea Co. Ltd. Mr. Abdul Hye Guarantee Regular
(Both of them ceased to be Director on and from March 8, 2017)
Mr. M.A. Kashem Mr. M. A. Kashem Director Credit Card 93,329 Regular
Mr. Azim Uddin Ahmed Mr. Azim Uddin Ahmed Director Credit Card 153,846 Regular
Mrs. Duluma Ahmed Mrs. Duluma Ahmed Director Credit Card 46,948 Regular
Mrs. Suraiya Begum Mr. Alamgir Kabir, FCA Chairman’s wife Credit Card 110,961 Regular
Director’s
Ms. Sultana Kashem Mr. M. A. Kashem Credit Card 77,627 Regular
daughter
Director’s
Ms. Farzana Azim Mr. Azim Uddin Ahmed Credit Card 106,676 Regular
daughter
Mr. Mamun Azim Mr. Azim Uddin Ahmed Director’s son Credit Card 169,441 Regular
The Bank complies with the requirements of the section 26 (c) of the Banking Companies Act 1991 as amended
in 2013 in connection to the transactions executed with persons related to the Banks.
69.4 Events after the reporting period
The Board of Directors in its 511 th meeting held on 8 April 2017 has recommended a cash dividend @ 20%
subject to the approval of the shareholders at the next Annual General Meeting.
The Board of Directors also decided to issue Right Share at the rate of 1:2 (i.e. one Right Share for every two
existing shares of Tk.10 each held by a shareholder) with a premium of Tk. 2.50 only for each new share (i.e.
one Right Share price shall be Tk.12.50 only) subject to the approval of the regulatory authorities and the
shareholders in the 8th Extra-Ordinary General Meeting scheduled to be held on 22 May 2017.
69.5 Number of employees
The number of employees engaged for the whole year or part thereof in 2016 who received a total yearly
remuneration of Tk 36,000 or above were 2,616. The total number of employees were 2,376 in 2015.
69.6 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 2016 was Tk.
18.70 (2015: Tk.17.60) for each Tk.10 per value of share at DSE and Tk. 18.80 (2015: Tk.17.70) for each Tk.10 per
value of share at CSE.
69.7 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. no. Name of the Company Shareholding Structure
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
69.8 Highlights on the overall activities of the Bank
Highlights on the overall activities of the Bank have been furnished in Annexure-A.
Southeast Bank Limited Annexure-A
Highlights on the overall activities

as at and for the year ended 31 December 2016
Sl. no. Particulars 2016 2015

1 Paid-up capital Taka 9,169,501,760 9,169,501,760
2 Total capital Taka 34,021,136,400 28,490,491,729
3 Capital surplus Taka 4,349,974,549 3,930,383,753
4 Total assets Taka 291,993,002,059 260,253,042,164
5 Total deposits Taka 230,533,702,113 210,435,774,704
6 Total loans and advances/investments Taka 189,364,957,468 169,378,858,711
7 Total contingent liabilities and commitments Taka 111,153,962,784 88,522,244,812
8 Credit deposit ratio 82.14% 80.49%
9 Percentage of classified loans/investments against total
loans and advances/investments 4.89% 4.25%
10 Profit after tax and provision Taka 2,416,371,223 3,082,479,520
11 Amount of classified loans/investments Taka 9,257,788,205 7,193,823,963
12 Provisions kept against classified loans/investments Taka 3,728,284,306 2,323,288,081
13 Provision surplus/(deficit) against classified loans/investments Taka 1,312,478,062 209,665,693
14 Cost of fund 7.32% 8.81%
15 Interest earning assets Taka 251,553,828,013 225,988,551,344
16 Non-interest earning assets Taka 40,439,174,046 34,264,490,820
17 Return on investment (ROI) 0.93% 1.32%
18 Return on assets (ROA) [PAT/ Average assets] 0.88% 1.24%
19 Income from investment Taka 5,014,416,110 5,125,174,462
20 Capital adequacy 12.18% 11.60%
21 Dividends
a) Stock dividends 0% 0%
b) Cash dividends 20% 15%
22 Earnings per share Taka 2.64 3.36
23 Net income per share Taka 2.64 3.36
24 Price earning ratio Times 7.12 5.25
Annexure-B
Consolidated Liquidity Statement
(Assets and liabilities maturity analysis)
as at 31 December 2016
Up to 1 month 1-3 months 3-12 months 1-5 years Above 5 years Total
Particulars
Assets:
Cash in hand 2,982,948,068 - - - 14,852,500,000 17,835,448,068
Balance with other banks and financial institutions 1,410,277,967 1,416,332,618 1,218,610,829 - - 4,045,221,414
Money at call and on short notice 4,271,344,100 - - - - 4,271,344,100
Investments 7,292,224,953 9,127,300,000 4,816,887,000 19,382,607,972 21,112,614,535 61,731,634,460
Loans and advances/investments 46,034,740,306 24,223,469,746 54,241,232,848 44,881,367,857 22,484,778,480 191,865,589,237
Fixed assets including premises, furniture and fixtures - - - 1,885,539,884 7,061,622,672 8,947,162,556
Other assets 1,403,482,450 617,595,142 153,037,756 925,212,857 2,282,039 3,101,610,244
Non banking assets - - - - - -
Total assets (A) 63,395,017,844 35,384,697,506 60,429,768,433 67,074,728,570 65,513,797,726 291,798,010,079
Liabilities:
Borrowings from Bangladesh Bank, other banks, financial institutions
892,887,819 1,254,200,000 3,530,377,350 1,526,995,340 8,167,174,573 15,371,635,082
and agents
Deposits 50,366,426,737 41,786,500,000 74,864,100,000 46,774,400,000 16,182,002,113 229,973,428,850
Provision and other liabilities 2,981,521,116 745,000,000 11,194,204,409 4,998,658,798 - 19,919,384,323
Total liabilities (B) 54,240,835,672 43,785,700,000 89,588,681,759 53,300,054,138 24,349,176,686 265,264,448,255
Net liquidity gap (A - B) 9,154,182,172 (8,401,002,494) (29,158,913,326) 13,774,674,432 41,164,621,040 26,533,561,824
337
338
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 2,978,740,659 - - - 14,852,500,000 17,831,240,659
Balance with other banks and financial institutions 1,410,100,000 1,350,000,000 1,218,610,829 - - 3,978,710,829
Money at call and on short notice 4,271,344,100 - - - - 4,271,344,100
Investments 5,015,600,000 9,127,300,000 4,816,887,000 19,382,607,972 21,112,614,535 59,455,009,507
Loans and advances/investments 43,534,108,537 24,223,469,746 54,241,232,848 44,881,367,857 22,484,778,480 189,364,957,468
Fixed assets including premises, furniture and fixtures - - - 1,552,064,028 7,061,622,672 8,613,686,700
Other assets 1,403,482,450 476,007,673 153,037,756 925,212,857 5,520,312,060 8,478,052,796
Non banking assets - - - - - -
Total assets (A) 58,613,375,746 35,176,777,419 60,429,768,433 66,741,252,714 71,031,827,747 291,993,002,059
Liabilities:
Borrowings from Bangladesh Bank, other banks, financial
885,200,000 1,254,200,000 3,530,377,350 1,526,995,340 8,167,174,573 15,363,947,263
Deposits 50,926,700,000 41,786,500,000 74,864,100,000 46,774,400,000 16,182,002,113 230,533,702,113
Provision and other liabilities 2,981,521,116 745,000,000 10,847,308,138 4,998,658,798 - 19,572,488,052
Total liabilities (B) 54,793,421,116 43,785,700,000 89,241,785,488 53,300,054,138 24,349,176,686 265,470,137,428
Net liquidity gap (A - B) 3,819,954,630 (8,608,922,581) (28,812,017,055) 13,441,198,576 46,682,651,061 26,522,864,631
Annexure-C
Balance with other banks-Outside Bangladesh (Nostro Account)
2016 2015
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 1,015,610.14 78.71 79,939,791 2,074,735 78.50 162,867,320
Arab Bangladesh Bank Ltd., Mumbai, India ACUD 432,119.26 78.71 34,012,582 203,167 78.50 15,948,685
Citibank AG, Frankfurt, Germany EUR 36,068.63 82.25 2,966,473 (56,507) 85.82 (4,849,259)
Citibank, NA, New York, USA USD 156,523.91 78.71 12,320,169 79,366 78.50 6,230,285
Habib American Bank, New York, USA USD 692,658.73 78.71 54,519,931 196,719 78.50 15,442,516
ICICI Bank Ltd., Mumbai, India ACUD 42,328.00 78.71 3,331,684 40,009 78.50 3,140,691
JP Morgan Chase Bank, New York, USA USD 1,841,719.53 78.71 144,963,770 545,203 78.50 42,798,605
Sonali Bank (UK) Ltd. USD 689,715.16 78.71 54,288,239 1,311,958 78.50 102,989,122
Sonali Bank (UK) Ltd. GBP 166,028.47 96.44 16,012,566 69,718 116.38 8,114,118
Sonali Bank (UK) Ltd. EUR 29,696.19 82.25 2,442,369 55,612 85.82 4,772,406
Standard Chartered Bank, Kolkata, India ACUD 65,438.38 78.71 5,150,727 210,165 78.50 16,498,010
Standard Chartered Bank, London, UK GBP 370,224.75 96.44 35,706,219 89,545 116.38 10,421,686
Standard Chartered Bank, New York OBU USD 31,798.85 78.71 2,502,922 331,126 78.50 25,993,493
Wells Fargo Bank, N.A., New York, USA USD 548,311.14 78.71 43,158,173 217,790 78.50 17,096,588
Mashreq Bank PSC, New York, USA USD 4,814,367.68 78.71 378,944,176 6,829,341 78.50 536,105,342
Mashreq Bank, Mumbai, India ACUD 176,293.87 78.71 13,876,284 206,139 78.50 16,181,958
Mashreq Bank, Mumbai, India ACUEUR 15,550.78 82.25 1,278,977 75,363 85.82 6,467,370
11,124,453.47 885,415,055 12,479,450 986,218,936
339
340
Annexure-C
Balance with other banks-Outside Bangladesh (Nostro Account)
2016 2015
Name of the Bank Currency FC Exchange Equivalent FC Exchange Equivalent
type amount rate Taka amount rate Taka
Non-interest bearing:
Al Rajhi Bank, Saudi Arabia SAR 268,459.79 20.97 5,629,316 98,145 20.91 2,052,043
Bank of Bhutan, Pheuntsholing, Bhutan ACUD 79,192.56 78.71 6,233,334 38,143 78.50 2,994,202
Bank of Nova Scotia, Toronto, Canada CAD - - - 44,494 56.58 2,517,501
Commerz Bank AG, Frankfurt, Germany EUR 60,156.37 82.25 4,947,574 6,979 85.82 598,944
Commerz Bank AG, Frankfurt, Germany USD 499,621.86 78.71 39,325,786 530,992 78.50 41,682,998
Habib Bank AG Zurich, Zurich, Switzerland CHF 23,870.21 76.68 1,830,346 24,593 79.37 1,951,850
Habib Metropoliton Bank Ltd., Karachi, Pakistan ACUD 365,510.81 78.71 28,769,758 56,157 78.50 4,408,327
HDFC Bank, Mumbai, India ACUD 1,066,318.55 78.71 83,931,106 690,928 78.50 54,238,086
Mashreq Bank PSC, Dubai, UAE AED 104,068.79 21.43 2,229,915 6,758 21.37 144,445
National Australia Bank Ltd., Melbourne, Australia AUD 136,211.42 56.72 7,725,805 382,355 57.32 21,916,941
Nepal Bangladesh Bank Ltd., Kathmandu, Nepal ACUD 48,150.10 78.71 3,789,947 30,026 78.50 2,357,015
Standard Chartered Bank, Colombo, Srilanka ACUD 202,791.23 78.71 15,961,921 117,713 78.50 9,240,541
Standard Chartered Bank, Mumbai (AEB), India ACUD 25,255.00 78.71 1,987,849 25,255 78.50 1,982,525
Habib Allied Intl Bank, UK EUR 73,250.00 82.25 6,024,463 - - -
Bank of Tokyo-Mitsubishi, JPY YEN 1,863,915.73 0.68 1,258,241 - - -
U.B.A.F., Tokyo, Japan YEN - - - 8,409,247 0.65 5,482,794
United Bank Limited, Karachi, Pakistan ACUD 162,281.68 78.71 12,773,370 3,684 78.50 289,179
Zuercher Kantonal Bank, Zurich, Switzerland CHF 140,645.46 76.68 10,784,568 137,907 79.37 10,945,034
5,119,700 233,203,299 10,603,375 162,802,425
16,244,153 1,118,618,354 23,082,824 1,149,021,361
Southeast Bank Limited Annexure-D
Details of Large Loan

2016 2015
Number of clients 25 28
Amount of outstanding advances (Amount in million Taka) 86,912.40 77,807.30
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 31 Outstanding as at 31
December 2016 December 2015
Sl. no. Name of clients
Non Non
Funded Total Funded Total
funded funded
1 Abul Khair Group 69.60 2,266.40 2,336.00 1,060.30 2,414.80 3,475.10
2 ACS Textiles (Bangladesh) Limited and its related concerns 2,128.50 1,207.50 3,336.00 2,236.90 1,701.10 3,938.00
3 Bashundhara Group 1,301.10 3,558.60 4,859.70 2,124.80 965.50 3,090.30
4 Designer Fashion Ltd. and its related concerns
(Formerly named as Designer Jeans Ltd.) 799.00 521.30 1,320.30 838.50 616.00 1,454.50
5 Caixa Bank, S.A. LA Caixa - - - - 2,802.30 2,802.30
6 Capital Banani One Ltd. and its related concerns 4,872.80 - 4,872.80 4,347.40 - 4,347.40
7 Cassiopea Fashion ltd. and its related concerns 488.60 1,591.20 2,079.80 446.90 1,139.80 1,586.70
8 Crown Wears (Pvt.) Ltd. and its related concerns 499.70 3,568.10 4,067.80 464.70 2,139.90 2,604.60
9 Deshbandhu Sugar Mills Ltd. and its related concerns 3,929.80 2,645.10 6,574.90 3,800.70 2,508.70 6,309.40
10 Grameen Phone Limited - 1,146.60 1,146.60 - 893.70 893.70
11 Irish Design Limited and its related concerns 670.20 1,383.70 2,053.90 601.30 1,064.60 1,665.90
12 Jaj Bhuiyan Textiles mills and its related concerns 2,301.00 55.80 2,356.80 1,918.00 665.60 2,583.60
13 KDS Group - - - 160.90 569.00 729.90
14 Keya Group 3,512.10 5,614.50 9,126.60 3,419.00 2,500.30 5,919.30
15 Aaron Denim Limited and its related concerns 2,261.80 890.20 3,152.00 2,007.70 544.00 2,551.70
16 Maksons Spinning Mills ltd. 2,341.60 2,095.90 4,437.50 2,493.30 184.00 2,677.30
17 Meghna Group - 6,778.50 6,778.50 277.60 3,483.00 3,760.60
18 Mother Steel ltd. and its related concerns 701.30 452.90 1,154.20 486.20 20.10 506.30
19 N. R. Group 390.70 1,366.80 1,757.50 290.30 1,013.90 1,304.20
20 Partex Group 1,033.70 2,412.20 3,445.90 1,307.90 1,792.10 3,100.00

21 S. Alam Super Edible Oil Ltd. - - - 179.60 3,975.80 4,155.40
22 Yunusco (BD) Limited and its related concerns
(Formarly named as Shore to Shore (BD) Ltd.) 1,263.10 1,640.30 2,903.40 764.80 1,355.00 2,119.80
23 Southeast Bank Capital Services Ltd. - - - 3,099.70 - 3,099.70
24 T. K. Group - 3,182.20 3,182.20 - 2,936.80 2,936.80
25 Rupayan Housing Estate Limited and its related concerns 4,554.80 2.10 4,556.90 3,406.00 - 3,406.00
26 Chittagong Asian Apparels Ltd. and its related concerns 1,748.30 1,765.90 3,514.20 1,600.40 910.60 2,511.00
27 Snowtex Apparels Limited and its related concerns 1,897.90 1,427.50 3,325.40 1,047.40 1,053.10 2,100.50
28 Generation Next Fashions Limited 975.40 1,280.90 2,256.30 1,092.80 1,084.50 2,177.30
29 Designtex Fashions Limited and its related concerns 1,006.40 1,310.80 2,317.20 - - -
Total 38,747.40 48,165.00 86,912.40 39,473.10 38,334.20 77,807.30
342
Annexure-E
Schedule of fixed assets including premises, furniture and fixtures
Cost/Revaluation Depreciation Written

Rate Adjustment Balance down value
Balance Additions Revalued Disposal Balance of Balance Charged as at
for disposal as at
Particulars as at during during during as at dep. as at during 31
during the 31
1 January the year the year the year 31 December 1 January the year December
year December
Taka Taka Taka Taka Taka % Taka Taka Taka Taka Taka
Own assets
Office:
Land 5,348,446,725 426,590,588 - - 5,775,037,313 - - - - - 5,775,037,313
Buildings 1,524,312,748 374,675,170 - - 1,898,987,918 4% 357,278,241 53,357,385 - 410,635,626 1,488,352,292
Furniture and fixtures 884,008,982 131,043,614 - (688,484) 1,014,364,112 10% 340,229,712 61,052,193 388,407 401,670,312 612,693,800
Office appliances 12,142,094 2,094,619 - (43,240) 14,193,473 20% 7,660,051 1,238,052 (43,239) 8,854,864 5,338,609
Computer 113,605,311 66,786,729 - - 180,392,040 20% 40,537,969 19,968,426 1,725,555 62,231,950 118,160,090
Electrical appliances 987,214,210 106,702,539 - (5,667,158) 1,088,249,591 20% 527,652,280 105,691,837 (4,162,526) 629,181,591 459,068,000
ATM Booth 158,100,064 20,880,439 - (4,234,350) 174,746,153 20% 59,176,131 20,857,361 109,441 80,142,933 94,603,220
Professional and reference
- - - - - 30% - - - - -
books
Motor vehicles 45,215,426 18,257,400 - (68,626) 63,404,200 20% 11,714,144 10,448,440 - 22,162,584 41,241,616
9,073,045,560 1,147,031,098 - (10,701,858) 10,209,374,800 1,344,248,528 272,613,694 (1,982,362) 1,614,879,860 8,594,494,940
Residence of executives:
Furniture and fixtures 3,704,290 550,000 - - 4,254,290 10% 1,342,120 265,597 (45,826) 1,561,891 2,692,399
Electrical Appliances 17,619,983 3,275,000 - (833,303) 20,061,680 20% 10,290,466 1,703,686 (658,885) 11,335,267 8,726,413
21,324,273 3,825,000 - (833,303) 24,315,970 11,632,586 1,969,283 (704,711) 12,897,158 11,418,812
9,094,369,833 1,150,856,098 - (11,535,161) 10,233,690,770 1,355,881,114 274,582,977 (2,687,073) 1,627,777,018 8,605,913,752
Leased assets
Furniture and fixtures 106,026,227 - - - 106,026,227 10% 106,026,227 - - 106,026,227 -
Motor vehicles 76,331,617 - - (9,438,242) 66,893,375 20% 63,741,460 4,817,210 (9,438,243) 59,120,427 7,772,948
182,357,844 - - (9,438,242) 172,919,602 169,767,687 4,817,210 (9,438,243) 165,146,654 7,772,948
Balance as at 31 December 2016 9,276,727,677 1,150,856,098 - (20,973,403) 10,406,610,372 1,525,648,801 279,400,187 (12,125,316) 1,792,923,672 8,613,686,700
Balance as at 31 December 2015 9,029,980,257 273,691,222 - (26,943,802) 9,276,727,677 1,268,806,637 263,312,640 (6,470,475) 1,525,648,802 7,751,078,875
Southeast Bank Limited Annexure-F
Names of Directors and their interest in different entities
Names of firms/companies
in which interested as
Sl. Status with % of
Name proprietor/ director/ Position
No. the Bank Shareholdings
managing agent/ guarantor/
employee/ partner, etc.
Asia Insurance Limited Director 6.40%
1 Mr. Alamgir Kabir, FCA Chairman Independent
National Life Insurance Co. Ltd. Nil
Director
Managing
The Sylhet Tea Co. Limited 21.46%
Director
Mr. Ragib Ali Rajnagar Tea Co. Limited Do 41.66%
Vice
2 (ceased to be Director on and
Chairman Union Syndicate Limited Do 22.55%
from March 8, 2017)
Doloi Tea Co. Limited Chairman 99.98%
Panchaghar Tea Co. Limited Do 25.76%
3 Mr. M. A. Kashem Director Rose Corner (Pvt.) Limited Chairman 50.00%
Managing
Mutual Food Products Ltd. 44.78%
Director
Mutual Milk Products Ltd. Do 52.00%
4 Mr. Azim Uddin Ahmed Director
Chairman &
Mutual Trading Co. Limited Managing 71.30%
Director
Mutual Food Products Ltd. Chairman 31.78%
5 Mrs. Duluma Ahmed Director Mutual Milk Products Ltd. Do 16.00%
Mutual Trading Co. Limited Director 12.96%
6 Mrs. Jusna Ara Kashem Director Rose Corner (Pvt) Ltd. Director 20.00%
7 Mr. Md. Akikur Rahman Director - - Nil
Managing
8 Mrs. Rehana Rahman Director Bengal Tradeways Limited 74.61%
Director
9 Mrs. Sirat Monira Director - - Nil
Karnafuli Tea Company Limited
(represented by Mr. Abdul Hye)
10 Director - - Nil
(ceased to be Director on and
from March 8, 2017)
International Publication Ltd.
Independent
11 Mr. A.H.M. Moazzem Hossain (Owning company of the Director 1.33%
Director
Financial Express)
Independent
12 Dr. Quazi Mesbahuddin Ahmed - - Nil
Director
Managing
Director
13 Mr. M. Kamal Hossain - - Nil
(Current
Charge)
Southeast Bank Limited Annexure-G
Islamic Banking Branches

Balance Sheet
2016 2015
Note
Taka Taka
PROPERTY AND ASSETS

Cash 1
In hand (including foreign currencies) 138,891,477 85,651,425
(including foreign currencies) 885,846,050 835,234,394
1,024,737,527 920,885,819
In Bangladesh 300,122,666 221,110
300,122,666 221,110
Money at call and on short notice - -
Investments in shares and securities 3
Government 650,000,000 640,000,000
Others 2,887,364,353 3,174,173,488
3,537,364,353 3,814,173,488
Investments 4
General Investments etc. 8,965,151,558 12,211,769,601
Bills purchased and discounted 326,049,485 158,940,930
9,291,201,043 12,370,710,531
Fixed assets including premises, furniture and fixtures 5 20,834,669 21,977,545
Other assets 6 6,431,807,594 7,756,135,005
Non - banking assets - -
Total assets 20,606,067,852 24,884,103,498
Liabilities
Borrowings from other banks, financial institutions and agents 7 1,500,000,000 -
Bills payable 333,143,196 105,260,070
16,740,571,724 22,018,061,751
Acceptances and endorsements 10.1 849,894,171 1,190,152,160
Letters of guarantee 10.2 908,652,217 711,261,320
Irrevocable letters of credit 10.3 727,081,836 674,363,740
Bills for collection 10.4 1,013,397,994 894,904,882
Other contingent liabilities - -
3,499,026,218 3,470,682,102
Southeast Bank Limited Annexure-G.1

Profit and Loss Account
2016 2015
Note
Taka Taka
Profit on investments 11 1,871,410,563 2,301,101,633

Profit shared on deposits and borrowings etc. 12 (1,073,283,905) (1,448,561,806)
Net profit on investments 798,126,658 852,539,827
Commission, exchange and brokerage 13 71,521,015 59,885,760
99,279,967 85,964,224
Total operating income (A) 897,406,625 938,504,051
Salaries and allowances 15 78,885,814 65,896,637
Rent, taxes, insurance, electricity etc. 16 37,555,015 28,818,708
Legal expenses 36,500 16,450
Postage, stamp, telecommunication etc. 17 8,217,481 7,476,055
Stationery, printing, advertisements etc. 18 3,273,577 3,331,088
Depreciation and repair of bank's assets 19 7,415,589 6,063,055
Other expenses 20 26,177,936 23,641,527
Total operating expenses (B) 161,561,912 135,243,520
Profit before provision (C=A-B) 735,844,713 803,260,531
Provision for investments 9.1
General provision (56,358,307) 66,516,369
Specific provision 440,905,620 (233,058,135)
384,547,313 (166,541,766)
Provision for off-balance sheet items 9.2 283,441 (399,591,185)
Provision for diminution in value of investments 9.3 (587,847,712) 722,967,262
Total provision (D) (203,016,958) 156,834,311
Total profit before tax (C-D) 938,861,671 646,426,220
Southeast Bank Limited Annexure-G.2

2016 2015
Note Taka Taka
1 Cash
In hand:
Local currency 138,859,993 85,572,925
Foreign currencies 31,484 78,500
138,891,477 85,651,425
Balance with Bangladesh Bank:
Local currency 870,294,183 834,839,164
Foreign currencies - -
870,294,183 834,839,164
Balance with Sonali Bank Limited (as agent of
Bangladesh Bank):
Local currency 15,551,867 395,230
885,846,050 835,234,394
1,024,737,527 920,885,819
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.
The statutory Cash Reserve Ratio on the Shariah-based Islamic Bank's demand and time liabilities at the rate of
minimum 6.0% on daily basis and 6.50% 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 (6.50% of average Demand and Time Liabilities:) 815,652,913 783,041,796
Actual reserve held (Average daily on bi-weekly basis): 870,294,183 834,839,164
Surplus 54,641,270 51,797,368
b) Statutory Liquidity Ratio (SLR) for Islamic Banking
Required reserve (5.50 % of average Demand and Time Liabilities:) 690,167,850 662,573,830
Surplus 168,907,627 115,270,193
Held for Statutory Liquidity Ratio of Islamic Banking:
Cash in hand 138,891,477 85,651,425

Balance with agent bank (Sonali Bank Ltd.) as per 15,543,000 395,230
statement
Government Securities (HTM) 650,000,000 640,000,000
859,075,477 777,844,023
2016 2015
Note Taka Taka
In Bangladesh 2.1 300,122,666 221,110
300,122,666 221,110
2.1 In Bangladesh
Current account with:
Sonali Bank Limited 740 740
740 740
Savings deposits account with:
EXIM Bank Limited - 110,557
Social Investment Bank Limited - 108,679
- 219,236
Short term deposits account with:
Sonali Bank Limited 1,134 1,134
EXIM Bank Limited 120,792 -
121,926 1,134
Fixed deposits with other banks:
300,000,000 -
300,122,666 221,110
3 Investments in shares and securities
Bangladesh Government Islamic Bond 650,000,000 640,000,000
Others 3.1 2,887,364,353 3,174,173,488
3,537,364,353 3,814,173,488
3.1 Others
Shares in listed companies 2,887,364,353.00 3,174,173,488

Shares in un-listed companies - -
2,887,364,353 3,174,173,488
Provision for diminution in the market value of shares (722,164,321) (1,310,012,033)
2,165,200,032 1,864,161,456
3.2 Investments classified as per Bangladesh Bank Circular
Held to maturity (HTM) 650,000,000 640,000,000

Other securities 2,887,364,353 3,174,173,488
3,537,364,353 3,814,173,488
3.3 Cost and market value of investments

2016 2015
Cost price Market price Market price
Taka Taka Taka
Bangladesh Government Islamic Bond 650,000,000 650,000,000 640,000,000
650,000,000 650,000,000 640,000,000
3.3.2 Others (Investment in shares) 2016 2015
Taka Taka Taka
Shares in listed companies 2,162,953,949 2,887,364,353 3,174,173,488

Shares in un-listed companies - - -
2,162,953,949 2,887,364,353 3,174,173,488
3.4 Market price, cost price and related provision of investments as on 31 December 2016
2016 Differences
Name of the Company Market price Cost price (Provision to be
Taka Taka Required)
1 Bay Leasing & Investment Limited 306,804,803 643,319,328 (336,514,525)
2 EXIM Bank 1st Mutual Fund 91,050,036 93,296,119 -
3 EXIM Bank Limited 338,449,996 696,815,163 (358,365,167)
4 Lafarge Surma Cement Ltd. 131,028,398 155,264,542 (24,236,144)
5 National Life Insurance Co. Limited 456,695,360 397,735,353 58,960,007
6 Titas Gas Trans. Co. Ltd. 89,160,973 92,298,169 (3,137,196)
7 RN Spinning 3,446,079 4,459,649 (1,013,570)
8 Premier Cement Mills Limited 40,032,240 48,428,204 (8,395,964)
9 Prime Finance Limited 7,884,394 26,958,933 (19,074,539)
10 Premier Leasing & Finance Limited 18,234,930 26,902,718 (8,667,788)
11 Generation Next Fashion Limited 37,121,088 65,982,996 (28,861,908)
12 Union Capital Limited 12,218,995 14,012,426 (1,793,431)
13 Bangladesh LAMPS LTD 12,740,943 16,791,948 (4,051,005)
14 Bangladesh Submarine Cable Co. Ltd. 31,913,837 46,266,367 (14,352,530)
15 Delta Life Insurance Limited 55,206,866 99,456,628 (44,249,762)
16 Aftab Automobiles Limited 61,249,892 94,751,115 (33,501,223)
17 Global Heavy Chemicals Limited 24,917,992 34,247,190 (9,329,198)
18 Fuwang Food 160,000 125,956 34,044
19 Delta Spinners Limited 2,577,850 3,719,475 (1,141,625)
20 Envoy Textile Mills Ltd. 839,244 1,157,799 (318,555)
21 Meghna Petroleum Limited 11,955,946 16,651,636 (4,695,690)
22 ACME Laboratories Limited 285,575,400 151,004,255 134,571,145
23 Matin Spinning Mills Limited 11,400,720 14,044,434 (2,643,714)
24 Ifad Autos 400,800 324,726 76,074
25 Aman Feed Ltd. 13,708,854 14,321,866 (613,012)
26 ACI Formulation 11,109,984 11,887,880 (777,896)
27 IPDC Finance Ltd. 6,998,445 7,044,521 (46,076)
28 Phoenix Finance & Investment Ltd. 6,160,100 6,268,931 (108,831)
29 BSC 4,702,000 4,699,724 2,276
30 Fuwang Ceramic 1,829,100 1,592,344 236,756
31 S ALAM 3,730,000 4,004,908 (274,908)
32 LankaBangla Finance Limited 8,799,562 8,579,814 219,748
33 Saif Power Tec Ltd. 34,991,612 35,704,991 (713,379)
34 BSRM Limited 12,760,000 17,059,559 (4,299,559)
35 ShahjiBazar Power Company Ltd. 27,097,510 32,184,686 (5,087,176)
2,162,953,949 2,887,364,353 (722,164,321)
Actual provision 722,164,321
Surplus/(deficit) -
2016 2015
Note Taka Taka
4 Investments
Investments 4.1 8,965,151,558 12,211,769,601

Bills purchased and discounted 4.2 326,049,485 158,940,930
9,291,201,043 12,370,710,531
2016 2015
Note Taka Taka
4.1 Investments
In Bangladesh
Demand Investment 242,699,956 39,653,688
Bai-Muajjal (Time) Investment 310,841,197 259,042,064
Bai-Muajjal Time under CCS 55,960,365 45,738,419
Bai-Murabaha-BLC 32,499,080 6,738,157
Bai-Murabaha-LTR 476,095,001 1,199,083,998
Bai-Salam (PACKING CREDIT) 84,436,201 73,641,542
Staff House Building Investment 8,362,607 6,328,219
Export Development Fund (EDF) against LC 633,716,266 394,527,668
Investment against Cash Incentive 17,327,114 9,932,898
Bai-Muajjal - Investment 3,269,956,321 6,350,895,335
Murabaha - Investment 624,262,832 562,799,707
Hire purchase - Investment 3,208,994,618 3,263,282,206
Izarah - Investment - 105,700
8,965,151,558 12,211,769,601
8,965,151,558 12,211,769,601
In Bangladesh 248,139,426 140,539,241
326,049,485 158,940,930
5 Fixed assets including premises, furniture and fixtures
Cost:
Furniture and fixture 20,161,166 18,414,466
Office Appliances 81,620 581,620
Electrical Appliances 26,276,457 24,355,701
Motor Vehicles 2,620,000 2,620,000
ATM Booth 3,915,270 4,820,105
53,054,513 50,791,892
Furniture and fixture 11,270,813 9,812,806
Office Appliances 81,618 504,737
Electrical Appliances 18,515,303 16,642,945
Motor Vehicles 611,339 87,334
ATM Booth 1,740,771 1,766,525
32,219,844 28,814,347
Written down value as at 31 December 20,834,669 21,977,545

6 Classification of other assets
i) Stationery, stamps, printing materials, etc. 600,598 642,187
ii) Advance rent and advertisement 31,963,867 15,877,032
iii) Interest accrued on investment but not collected,
commission and brokerage receivable on shares and
debentures, and other income receivables 5,791,241 131,241
iv) Security deposits 69,460 69,460
v) Preliminary, formation and organisational expenses,
renovation, development and prepaid expenses 4,154,592 3,335,680
vii) Suspense account 2,404,214 5,034,090
viii) Silver - -
ix) Head office general account 6,384,977,192 7,728,329,525
X) Others 1,846,430 2,715,790
6,431,807,594 7,756,135,005
2016 2015
Note Taka Taka
7 Borrowing from other banks, financial institutions and agents
In Bangladesh 7.1 1,500,000,000 -

1,500,000,000 -
7.1 In Bangladesh
Secured
Borrowing against securities from Bangladesh Bank 1,500,000,000 -
1,500,000,000 -
Unsecured - -
1,500,000,000 -
8 Deposits and other accounts
Al-wadeeah current accounts and other accounts

Al-wadeeah current deposits 386,612,640 365,847,770
Foreign currency deposits 25,072,729 26,757,443
Sundry deposits 896,436,573 637,894,752
1,308,121,942 1,030,499,965
Bills payable
Payment order issued 332,989,460 105,081,077
T.T. payable 100,700 125,707
Demand draft 53,036 53,286
333,143,196 105,260,070
Mudaraba savings bank deposits 1,663,579,436 5,130,145,722
Mudaraba fixed deposits

Mudaraba fixed deposits 11,682,637,461 13,951,911,085
Mudaraba Special notice deposits 675,707,267 625,271,927
Scheme deposits 981,521,681 1,015,417,570
Interest Payable on FDR/Scheme 95,860,741 159,555,412
13,435,727,150 15,752,155,994
16,740,571,724 22,018,061,751
9 Other liabilities
Provision for investments 9.1 1,023,198,841 637,201,528

Provision for off-balance sheet exposures 9.2 34,990,262 34,706,821
Interest suspense account 123,540,202 135,050,659
Obligation under finance lease - -
Accrued expenses 1,003,044 85,000
Interest payable on borrowings 4,001,370 -
Accounts payable - Bangladesh Bank - -
Accounts payable - others 1,568,524 979,793
Provision for diminution in the market value of share 9.2 722,164,321 1,310,012,033
Provision for other assets - -
Unearned income 388,476,342 680,406,920
Withholding tax 66,562,222 67,598,993
2,365,946,128 2,866,041,747
2016 2015
Note Taka Taka
9.1 A. General provision for investments

Provision made during the year - 66,516,369
124,744,414 124,744,414
Adjustments made during the year (56,358,307) -
B. Specific provision for investments

Recoveries of amounts previously written off 1,441,000 -
Provision made during the year 440,905,620 -
954,803,734 745,515,249
C. Total provision on investments (C=A+B) 1,023,189,841 637,201,528
9.2 Provision for off-balance sheet exposures

Provision made during the year 283,441 -
34,990,262 434,298,006
9.3 Provision for diminution in the market value of share
Balance as at 1 January 1,310,012,033 587,044,771

Provision made during the year - 722,967,262
1,310,012,033 1,310,012,033
Adjustments made during the year (587,847,712) -
Balance as at 31 December 722,164,321 1,310,012,033
10 Contingent liabilities
10.1 Acceptances and endorsements
Acceptance under Letters of credit - Import 267,075,882 654,937,680

Acceptance under Letters of credit - Export 582,818,289 535,214,480
849,894,171 1,190,152,160
10.2 Letters of guarantee

Local 790,957,217 692,391,320

Foreign 117,695,000 18,870,000
908,652,217 711,261,320
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 908,652,217 711,261,320
908,652,217 711,261,320
10.3 Irrevocable letters of credit (L/C)
Back to back L/C 328,505,407 375,225,832
Others 398,576,429 299,137,908
727,081,836 674,363,740
2016 2015
Note Taka Taka
10.4 Bills for collection
Local 519,166,618 599,526,326

Foreign 494,231,376 295,378,556
1,013,397,994 894,904,882
11. Profit on investment
Demand investment 9,166,698 3,135,713
Bai-Muajjal (Time) investment 29,191,073 19,315,006
Bai-Muajjal time under CCS 6,076,491 5,678,947
Bai-Murabaha-BLC 7,132,582 5,038,070
Bai-Murabaha-LTR 78,329,760 164,424,716
Bai-Salam (PACKING CREDIT) 8,598,552 6,648,440
Staff house building investment 257,208 316,890
Staff car loan investment 166,130 464,143
Investment against cash incentive 1,707,058 994,744
Bai-Muajjal - Investment 403,072,130 453,633,383
Murabaha - Investment 56,450,361 63,004,321
Hire purchase - Investment 323,550,262 211,452,358
Izarah - Investment - 54,106
Quard against MTDR - 14,659
Interest on savings accounts 18,524 -
Interest on special term deposit STD 3,300,000 -
Bills purchased and discounted 37,123,554 31,771,932
Interest on placement with other banks 24,185,041 85,855,000
Interest branch interest income 883,085,139 1,249,299,205
1,871,410,563 2,301,101,633
12. Profit shared on deposits and borrowings etc.
Profit shared on deposits (Islamic Banking Branch): 80,923,783 187,470,478
Mudaraba Savings Deposits (MSB) 49,073,389 24,810,112
Mudaraba Short Term Deposits (MSTD) 903,655,225 1,131,300,980
Mudaraba Fixed Term Deposits (MFDR) 39,631,508 60,869,206
Interest on Re-finance borrowings - 44,111,030
Inter Branch interest expenses 1,073,283,905 1,448,561,806
13 Commission, exchange and brokerage
Commission and brokerage 60,283,607 52,899,859
Exchange gain 11,237,408 6,985,901
71,521,015 59,885,760
14 Other operating income
Other fees-telephone and postage 2,831,104 2,178,043
Income from retail banking 84,480 262,683
Other fees - SWIFT 8,362,968 7,483,894
27,758,952 26,078,464
Basic salary 39,540,655 30,882,057
Allowances 24,090,710 21,143,291
Bonus 11,770,082 11,100,653
Provident fund 3,484,367 2,770,636
78,885,814 65,896,637
2016 2015
Note Taka Taka
Rent, rates and taxes 23,940,299 15,990,000
Insurance 9,316,439 8,800,826
Electricity and lighting 4,298,277 4,027,882
37,555,015 28,818,708
Postage 2,150,441 1,916,248
Telephone /Telex 411,530 475,698
VSAT on-line 2,241,596 2,199,119
SWIFT services 3,413,914 2,884,990
8,217,481 7,476,055
Office stationery 862,027 767,155
Printing stationery 1,147,213 1,497,034
Security stationery 1,001,573 785,199
Computer stationery 250,094 278,842
Publicity and advertisement 12,670 2,858
3,273,577 3,331,088
Depreciation:
Furniture and fixtures 873,253 1,003,308
Office appliances - -
Motor vehicles 524,004 87,334
ATM Booth 592,011 453,255
3,701,421 3,648,450
Repair:
Furniture and fixtures 318,002 368,175
Office and electrical appliance 1,933,309 1,269,593
Repair and maintenance computers 172,965 197,200
Motor vehicles 106,130 98,040
Repair, maintenance and utilities 1,183,762 481,597
3,714,168 2,414,605
7,415,589 6,063,055
20 Other expenses
Security and cleaning 5,511,574 4,793,648

Entertainment 1,509,768 1,296,432
Car expenses 6,697,612 5,961,640
Books and periodicals 33,272 35,426
Subscription and donation 55,000 3,000
Travelling expenses 564,269 389,550
Conveyance 321,351 264,590
Fuel 187,131 121,480
Uniforms and apparels 187,949 156,837
Loss on sale of fixed assets 44,498 -
Finance charge on leased assets - 523,489
Expenses for CIB report 6,370 4,080
Expenses regarding retail banking 18,800 202,058
Miscellaneous 11,040,342 9,889,297
26,177,936 23,641,527
Southeast Bank Limited Annexure-H
Off-Shore Banking Unit, Bangladesh

Balance Sheet
2016 2015
Note
USD Taka Taka
PROPERTY AND ASSETS

Cash
In hand (including foreign currencies) - - -
Balance with Bangladesh Bank and its agent banks - - -
(including foreign currencies) - - -
Balances with other banks and financial institutions 3

In Bangladesh 393,079 30,939,647 25,288,318
Outside Bangladesh 31,799 2,502,922 25,993,493
424,878 33,442,569 51,281,811
Money at Call and on short notice - - -
Investments
Government - - -
Others - - -
- - -
Loans and advances 4
Loans, cash credit & overdrafts etc. 22,435,600 1,765,930,769 1,254,004,353
Bills purchased and discounted 57,950,547 4,561,351,334 3,643,187,365
80,386,147 6,327,282,103 4,897,191,718
Fixed assets including premises, furniture and fixtures 5 21,601 1,700,220 2,118,263
Other assets 6 159,516 12,555,735 14,505,983
Non-banking assets - - -
Total assets 80,992,142 6,374,980,627 4,965,097,775
Liabilities
Borrowings from other banks, financial institutions
and agents 7 77,405,000 6,092,632,695 4,795,975,829
Current accounts and other accounts 66,230 5,213,018 8,845,370
Bills payable - - -
Savings bank deposits - - -
Fixed deposits 210,847 16,595,974 13,142,470
277,077 21,808,992 21,987,840
Other liabilities 9 1,050,221 82,342,885 63,371,404
Total liabilities 78,732,298 6,196,784,572 4,881,335,073
Paid up capital - - -
Statutory reserve - - -
Other reserves - - -
Foreign currency losses - - -
Retained earnings 10 2,259,844 178,196,055 83,762,702
Total shareholders' equity 2,259,844 178,196,055 83,762,702
Total liabilities and shareholders' equity 80,992,142 6,374,980,627 4,965,097,775

Balance Sheet
2016 2015
Note
USD Taka Taka
Acceptances and endorsements - - 156,738,710
Letters of guarantee - - -
Irrevocable letters of credit 115,439 9,086,309 33,235,820
Bills for collection 2,427,026 191,033,922 22,613,972
2,542,465 200,120,231 212,588,502
- - -
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
Claims against the Bank not acknowledged as debt - - -
- - -
Other memorandum items
Value of travelers' cheques on hand - - -
Value of Bangladesh Sanchay Patra on hand - - -
Total off-balance sheet items including contingent liabilities 2,542,465 200,120,231 212,588,502
Southeast Bank Limited Annexure-H.1

Profit and Loss account
2016 2015
Note
USD Taka Taka
Interest income 11 4,046,078 317,159,565 219,271,868

Interest paid on deposits and borrowings etc. 12 (2,731,554) (214,118,055) (158,653,769)
Net interest income 1,314,524 103,041,510 60,618,099
Commission, exchange & brokerage 13 189,999 14,893,415 8,119,730
Other operating income 13.1 89,495 7,015,243 4,687,108
279,494 21,908,658 12,806,838
Total operating income (A) 1,594,018 124,950,168 73,424,937
Salaries and allowances 14 45,786 3,589,013 3,258,804

Rent, taxes, insurance, electricity etc. 15 12,243 959,695 854,789
Legal expenses 44 3,449 699,603
Postage, stamp, telecommunication 16 15,003 1,176,104 1,076,393
Stationery, printing, advertisements etc. 17 1,610 126,208 114,076
Depreciation and repair of bank's assets 18 5,891 461,737 414,823
Other expenses 19 138,296 10,840,461 8,130,434
Total operating expenses (B) 218,873 17,156,667 14,548,922
Operating profit (C=A-B) 1,375,145 107,793,501 58,876,015
Provision for loans and advances
General provision 9.1 182,337 14,292,821 30,569,299
Specific provision - - -
182,337 14,292,821 30,569,299
Provision for diminution in value of investments - -
Other provisions 9.2 (1,656) (124,682) 186,385
Total provision (D) 180,681 14,168,139 30,755,684
Total profit before tax (C-D) 1,194,464 93,625,362 28,120,331
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 Bangladesh Financial Reporting Standards (BFRS).
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. 78.7111 (closing rate as at 31 December 2016) and Tk. 78.3869 (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.
2016 2015
Note
USD Taka Taka
In Bangladesh 3.1 393,079 30,939,647 25,288,318

Outside Bangladesh 3.2 31,799 2,502,922 25,993,493
424,878 33,442,569 51,281,811
3.1 In Bangladesh
Southeast Bank Limited 393,079 30,939,647 25,288,318

Other commercial bank - - -
393,079 30,939,647 25,288,318
3.2 Outside Bangladesh (current account)
Standard Chartered Bank, New York 31,799 2,502,922 25,993,493
4 Loans and advances
Loans, cash credit, overdrafts etc. 4.1 22,435,600 1,765,930,769 1,254,004,353

Bills purchased and discounted 4.2 57,950,547 4,561,351,334 3,643,187,365
80,386,147 6,327,282,103 4,897,191,718
4.1 Loans, cash credit, overdrafts etc.
In Bangladesh - - -
Outside Bangladesh 4.1.1 22,435,600 1,765,930,769 1,254,004,353
22,435,600 1,765,930,769 1,254,004,353
4.1.1 Outside Bangladesh
Time loan 5,341,060 420,400,688 541,122,980

Term loan 16,050,898 1,263,383,837 638,664,332
Overdraft 37,109 2,920,921 2,949,219
Advance-LTR 1,006,533 79,225,323 71,267,822
22,435,600 1,765,930,769 1,254,004,353
In Bangladesh - - -
Outside Bangladesh 57,950,547 4,561,351,334 3,643,187,365
57,950,547 4,561,351,334 3,643,187,365
5 Fixed assets including premises, furniture

and fixtures
Cost:
Furniture and fixtures 40,730 3,205,905 3,157,511
Electrical appliances 21,014 1,654,017 1,649,587
61,744 4,859,922 4,807,098
Less:
Furniture and fixtures 21,803 1,716,144 1,490,283
Electrical appliances 18,340 1,443,558 1,198,552
40,143 3,159,702 2,688,835
Written down value as at 31 December 21,601 1,700,220 2,118,263
2016 2015
Note
USD Taka Taka
6 Other assets
Accrued interest on bill purchased and discounted 713 56,116 55,965
Prepaid interest expenses-ICICI - - 2,910,071
Prepaid management fee GCPF 84,591 6,658,410 3,528,428
Prepaid interest mashreq 65,167 5,129,340 -
Prepaid expense-IFC monitoring fee 5,750 452,590 7,817,321
Insurance 146 11,447 5,603
Advance office rent 2,149 169,121 168,668
Head office general account 1,000 78,711 -
Accounts receivable others - - -
Others - - 19,927
159,516 12,555,735 14,505,983
7 Borrowing from other banks, financial

Borrowings from IFC 15,000,000 1,180,666,500 1,177,504,500
Borrowings from Mashreq bank PSC-USD 5,000,000 393,555,500 -
Borrowings from GCPF 10,000,000 787,111,000 392,501,500
Borrowings from ICIC - - 549,502,100
Borrowings from Bank Muscat, Oman 5,000,000 393,555,500 -
Borrowings from CBQ - - 1,491,505,700
Borrowings from ADB 4,900,000 385,684,390 -
Borrowings from FGB, UAE 15,000,000 1,180,666,500 -
Borrowings from RAK Bank ,UAE 18,000,000 1,416,799,800 745,752,850
Borrowings from Head Office 4,505,000 354,593,505 439,209,179
77,405,000 6,092,632,695 4,795,975,829
8 Deposit accounts
Current accounts 8.1 66,230 5,213,018 8,845,370

Fixed deposits 210,847 16,595,974 13,142,470
277,077 21,808,992 21,987,840
8.1 Current deposits
Current accounts 19,755 1,554,917 3,167,981
Margin against L/C 11,544 908,631 3,323,582
Sundry creditors 204 16,057 1,627,783
Sundry deposit FCY 34,727 2,733,413 726,024
66,230 5,213,018 8,845,370
9 Other liabilities
Interest payable on borrowings 17,576 1,383,457 10,007,761
Interest payable on FDR 1 61 59
Accrued expenses payable 1,562 122,964 27,244
Interest payable-IFC loan 31,620 2,488,845 2,230,455
Interest payable on RAK Bank, UAE 60,000 4,722,667 -
Interest payable on Bank Muscat, Oman 42,328 3,331,677 -
Interest payable on FGB, UAE 33,364 2,626,091 -
Interest payable on ADB 30,404 2,393,099 -
Interest payable-CBQ Loan - - -
Provision for unclassified loans and advances 9.1 807,941 63,272,821 48,980,000
Provision for off-balance sheet exposures 9.2 25,425 2,001,203 2,125,885
Other provisions - - -
1,050,221 82,342,885 63,371,404
2016 2015
Note
USD Taka Taka
9.1 Provision for unclassified loans and advances
Balance as at 1 January 625,604 48,980,000 18,410,701
Provision made during the year 182,337 14,292,821 30,569,299
807,941 63,272,821 48,980,000
Adjustments made during the year - - -
Balance as at 31 December 807,941 63,272,821 48,980,000
9.2 Other provisions
Provision for off-balance sheet exposures
Balance as at 1 January 27,081 2,125,885 1,939,500
Add: Provision made during the year - - 186,385
27,081 2,125,885 2,125,885
Less: Adjustments made during the year (1,656) (124,682) -
Balance as at 31 December 25,425 2,001,203 2,125,885
10 Retained earnings
Balance as at 1 January 1,065,380 83,762,702 54,696,491
Add/less: foreign currency translation gain for last year - 807,991 945,880
1,065,380 84,570,693 55,642,371
Addition during the year 1,194,464 93,625,362 28,120,331
2,259,844 178,196,055 83,762,702
Add/less: foreign exchange gain (loss) - - -
Balance as at 31 December 2,259,844 178,196,055 83,762,702
11 Interest income on investment
Interest Income from loans and advances 959,475 75,210,306 48,268,010
Interest on overdraft 1,306 102,359 104,889
Interest income from bill purchased and discounted 3,085,297 241,846,900 170,898,969
4,046,078 317,159,565 219,271,868
12 Interest paid on deposits and borrowings etc.
Interest on IFC loan 662,347 51,919,334 14,472,797
Interest expense on mashreq bank loan 100,944 7,912,722 47,595,535
Interest on CBQ loan 456,651 35,795,422 50,649,008
Interest expenses -GCPE loan 360,612 28,267,290 13,125,581
Interest expenses -ICIC bank 93,275 7,311,538 10,545,132
Interest expenses -RAK bank,UAE 475,640 37,283,968 914,724
Interest expenses -Bank Muscat, Oman 204,341 16,017,653 -
Interest expenses FGB, UAE 115,999 9,092,776 -
Interest expenses ADB 30,404 2,383,242 -
Interest on FDR 19 1,483 884
Interest on calls and placement 231,322 18,132,627 21,350,108
2,731,554 214,118,055 158,653,769
13 Commission, exchange & brokerage
Commission and other charges 189,999 14,893,415 8,119,730
189,999 14,893,415 8,119,730
13.1 Other operating income
Other income- SWIFT 7,783 610,087 429,521
Miscellaneous income 13,982 1,096,011 972,766
Rebate from trade payments 67,730 5,309,145 3,284,821
89,495 7,015,243 4,687,108
2016 2015
Note
USD Taka Taka
Basic salary 21,663 1,698,081 2,009,151

Allowances 15,619 1,224,312 663,246
Provident fund contribution 1,927 151,046 126,848
Bonus 6,577 515,574 459,559
45,786 3,589,013 3,258,804
Rent, rates and taxes 10,101 791,789 699,799

Insurance 217 17,001 22,315
Electricity and lighting 1,925 150,905 132,675
12,243 959,695 854,789
Postage 126 9,852 11,631

Expenses regarding On-line - - -
Internet service 4,550 356,688 192,357
SWIFT charges 6,706 525,690 654,889
FC Nostro charges 3,086 241,906 171,023
Telephone 535 41,968 46,493
15,003 1,176,104 1,076,393
Office and printing stationery 1,610 126,208 114,076

1,610 126,208 114,076
Depreciation on own assets:

Furniture and fixtures 2,819 220,945 231,091
Electrical appliances 3,072 240,792 183,732
5,891 461,737 414,823
19 Other expenses
Entertainment 311 24,358 22,121

Management fee GCPF 10,355 811,691 393,808
Expense- IFC front-end fee 99,583 7,806,029 3,929,990
Expense-IFC commitment free - - 1,808,011

Expense-IFC portfolio monitoring expense 4,250 333,144 -
Travelling expenses and allowance 218 17,090 6,613
House maintenance (Executive ) 2,272 178,082 168,004
Repair, maintenance and utilities 554 43,391 32,840
Books and periodicals 93 7,265 9,214
Conveyance 557 43,623 58,926
Miscellaneous 20,103 1,575,788 1,700,907
138,296 10,840,461 8,130,434
362
Annexure-I
Geographical and Business Segment
I) Geographical Segment
Inside Bangladesh Outside Bangladesh
Southeast
Southeast
SEBL Southeast Financial Total
Particulars Off Shore SEBL Capital Exchange
(Conventional & Financial Services
Banking Unit Services Limited Company (South
Islamic Banking) Services (UK) Ltd (Australia) Pty
Africa) Pty Ltd
Ltd
Taka Taka Taka Taka Taka Taka Taka
Income 12,570,989,314 124,950,168 96,268,131 18,628,655 1,277,888 40,340,544 12,852,454,700
Less: Inter segmental income/expense 114,841,544 - (114,841,544) - - - -
Total Income 12,456,147,770 124,950,168 211,109,675 18,628,655 1,277,888 40,340,544 12,852,454,700
Operating profit (profit before unallocated 12,456,147,770 124,950,168 211,109,675 18,628,655 1,277,888 40,340,544 12,852,454,700
expenses and tax)
Allocated expenses (4,235,378,679) (17,156,667) (59,863,398) (17,679,772) (896,905) (18,256,943) (4,349,232,364)
Provision against loans & advances and others (3,237,277,734) (14,168,139) 38,821,526 - - - (3,212,624,347)
Profit (loss) before tax 4,983,491,357 93,625,362 190,067,803 948,883 380,983 22,083,601 5,290,597,989
Provision for tax including deferred tax (2,830,000,000) - (19,740,876) - - (5,783,515) (2,855,524,391)
Net profit 2,153,491,357 93,625,362 170,326,927 948,883 380,983 16,300,086 2,435,073,598
Segment assets 280,102,471,822 6,374,980,627 5,220,323,938 29,735,322 2,926,936 67,571,434 291,798,010,079
Segment liabilities 280,102,471,822 6,374,980,627 5,220,323,938 29,735,322 2,926,936 67,571,434 291,798,010,079
Annexure-I
Geographical and Business Segment
II) Business Segment

Inside Bangladesh Outside Bangladesh
Southeast
Southeast
Conventional Southeast Financial Total
Particulars Islamic SEBL Capital Exchange
Banking Financial Services
Banking Services Limited Company (South
including OBU Services (UK) Ltd (Australia) Pty
Africa) Pty Ltd
Ltd
Taka Taka Taka Taka Taka Taka Taka
Income 11,798,532,857 897,406,625 96,268,131 18,628,655 1,277,888 40,340,544 12,852,454,700
Less: Inter segmental income 114,841,544 - (114,841,544) - - - -
Total income 11,683,691,313 897,406,625 211,109,675 18,628,655 1,277,888 40,340,544 12,852,454,700
Operating profit (profit before unallocated 11,683,691,313 897,406,625 211,109,675 18,628,655 1,277,888 40,340,544 12,852,454,700
expenses and tax)
Allocated expenses (4,090,973,434) (161,561,912) (59,863,398) (17,679,772) (896,905) (18,256,943) (4,349,232,364)
Provision against loans & advances and others (3,454,462,831) 203,016,958 38,821,526 - - - (3,212,624,347)
Profit (loss) before tax 4,138,255,048 938,861,671 190,067,803 948,883 380,983 22,083,601 5,290,597,989
Provision for tax including deferred tax (2,830,000,000) - (19,740,876) - - (5,783,515) (2,855,524,391)
Net profit 1,308,255,048 938,861,671 170,326,927 948,883 380,983 16,300,086 2,435,073,598
Segment assets 265,871,384,597 20,606,067,852 5,220,323,938 29,735,322 2,926,936 67,571,434 291,798,010,079
Segment liabilities 265,871,384,597 20,606,067,852 5,220,323,938 29,735,322 2,926,936 67,571,434 291,798,010,079
363
Appendix-A
Audited Financial Statements

of
Southeast Bank Capital Services Limited
AUDITOR’S REPORT TO THE SHAREHOLDERS

OF
SOUTHEAST BANK CAPITAL SERVICES LIMITED
We have audited the accompanying financial statements of Southeast Bank Capital Services Limited which comprises
the Statement of Financial Position as at December 31, 2016 and the related Statement of Profit or Loss and Other
Comprehensive Income, Statement of Changes in Shareholders Equity, Statement of Cash Flows and for the year ended
and a summary of significant accounting policies and other explanatory notes.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
Bangladesh Financial Reporting standards (BFRS), the companies Act 1994, and other applicable laws and regulations,
This responsibility includes designing, implementing, and maintaining internal control relevant to 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.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with Bangladesh standards on Auditing (BSA). Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation and fair presentation of the financial statements 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 entity’s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
In our opinion, the financial statements prepared in accordance with Bangladesh Financial Reporting Standards (BFRS),
give a true and fair view of the state of the company’s affairs as at December 31, 2016 and its cash flows for the year ended
and comply with the companies Act 1994 and other applicable laws and regulations.
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 account as required by law have been kept by the company so far as it
appeared from our examination of those books and proper returns adequate for the purpose of our audit have
been received from branches not visited by us;
(iii) The financial statements dealt with by the report are in agreement with the books of account and returns.
Dhaka Pinaki & Company

Dated: 23.03.2017 Chartered Accountants
Southeast Bank Capital Services Ltd.

Statement of Financial Position
2016 2015
PARTICULARS Note
Taka Taka
ASSETS
A. NON-CURRENT ASSETS 327,715,305 126,334,270
Property, Plant and Equipment 04 327,715,305 126,334,270
B. CURRENT ASSETS 5,473,896,220 4,595,272,201
Margin Loan 05 2,500,642,443 2,363,503,024
Accounts Receivable 06 35,890,284 17,631,297
Advances, Deposits and Prepayments 07 79,461,626 251,911,612
Investment in Quoted Shares 08 2,276,624,953 1,940,851,629
Cash and Cash Equivalents 09 581,276,914 21,374,639
C. TOTAL ASSETS [A + B] 5,801,611,525 4,721,606,471
EQUITY AND LIABILITIES
D. CAPITAL AND RESERVE 5,463,491,041 1,404,418,618
Share Capital 10 5,500,000,000 1,500,000,000
Retained Earnings 11 (36,508,959) (95,581,382)
E. NON-CURRENT LIABILITIES - -
- -
F. CURRENT LIABILITIES 338,120,484 3,317,187,852
Margin Deposit 12 21,003,651 16,693,063
Accounts Payable - -
Advance Received for Rent 13 13,095,140 19,091,280
Collection in Transit 14 67,035,027 27,320,020
Loan From ICB 15 7,687,819 37,139,427
Bank Overdraft 10,674 2,863,903,191
Provision for Corporate Income Tax 16 61,831,939 42,091,063
Provision for Diminution in Value of Investments 17 114,303,939 153,125,465
Accrued Expenses 18 486,276 114,684,052
Other Liabilities 19 52,666,021 43,140,292
G. TOTAL EQUITY AND LIABILITIES [D + E + F] 5,801,611,525 4,721,606,471
Chairman Director Managing Director (C.C.) PINAKI & COMPANY


Statement of Profit or Loss and Other Comprehensive Income
For the year ended December 31, 2016
2016 2015
PARTICULARS Note
Taka Taka
Income:
Interest on Portfolio Loan 76,502,732 125,781,000
Interest on Fixed Deposit - -
Portfolio Management Fee 15,192,687 16,095,484
Documentation Charge 22,087 78,887
Settlement Fee 14,385,736 11,484,801
Commission on Underwriting 442,368 120,001
Income on Investment Shares 30,470,312 (4,589,920)
Commission on Issue Management - 34,996
Dividend Income 34,720,326 37,952,581
Other Income 20 3,785,285 3,358,080
Interest on SND Acc. 22,214,126 80,092
IPO Application Commission - 9,862
Total Income 197,735,660 190,405,863
Expenses:
Salary & Allowances 21 8,625,400 9,836,715
Financial Expenses 22 97,880,488 255,758,304
Printing & Stationery 202,117 209,108
Local Conveyances 15,550 12,480
Entertainment 247,863 225,393
House Service & Utilities 154,000 244,800
House Maintenance 614,000 720,000
Telephone & Postage 128,918 142,425
Office Rents and Other Rates & Taxes 16,831,652 8,242,562
Miscellaneous Expenses 42,854 77,177
CDBL Expenses 2,068,918 1,644,216
Car Maintenance 361,490 895,480
Misc. Contractual Services 778,165 738,599
Bank Charges 29,570 28,209
Director Remuneration 215,000 40,000
Other Professional Service Charge 132,250 115,000
Audit Fees 40,000 40,000
Corporate Expenses (Subscription) 887,875 105,000
Repair , Maintenance & Utilities 1,255,742 1,088,745
Trainning & Seminar 37,000 90,000
Interest Waiver on Margin Loan - -
Electricity & Lighting 4,850 2,340
Depreciation 27,190,185 14,093,586

Total Expenses 157,743,888 294,350,140
Net Profit Before Provision 39,991,772 (103,944,277)
Add/(Less): Provision for Diminution in Value of Investments 23 38,821,526 4,673,592
Profit/(Loss) Before Tax 78,813,298 (99,270,685)
Less: Provision for Corporate Income Tax 19,740,876 (7,590,516)
Retained Earnings Carried Forward 59,072,422 (106,861,201)
Chairman Director Managing Director (C.C.) PINAKI & COMPANY


Statement of Changes in Shareholders Equity
(Amount in Taka)
General Retained
Particulars Share Capital Total
Reserve Earnings
Balance as on 01.01.2016 1,500,000,000 - (95,581,382) 1,404,418,618
Add: during the year 4,000,000,000 - - 4,000,000,000
Retained earnings during the year - - 59,072,422 59,072,422
Balance as on 31.12.2016 5,500,000,000 - (36,508,960) 5,463,491,040
Statement of Changes in Shareholders Equity

(Amount in Taka)
General Retained
Particulars Share Capital Total
Reserve Earnings
Balance as on 01.01.2015 1,000,000,000 - 11,279,819 1,011,279,819
Add: during the year 500,000,000 - - 500,000,000
Retained earnings during the year - - (106,861,201) (106,861,201)
Balance as on 31.12.2015 1,500,000,000 - (95,581,382) 1,404,418,618

Statement of Cash Flows
2016 2015 (Restated)

Taka Taka
Cash flow from operating activities

Cash receipt from Customer 58,243,745 110,173,485
Cash Received from Others 64,298,475 26,592,192
Cash paid to Employee and Suppliers (23,045,110) (20,885,763)
Advances, Deposits and Prepayments 182,332,995 7,817,520
Income Tax Paid (9,883,009) (8,830,870)
Margin Loan (137,139,419) (8,717,985)
Margin Deposit 4,310,588 (3,366,142)
Advance Received for Rent (5,996,140) (5,984,640)
Collection in Transit 39,715,007 749,823
Net cash provided by operating activities 172,837,132 97,547,620
Cash flow from investing activities
Investment in Quoted Shares (508,568,787) (105,585,806)
Disposal of Investment in Quoted Shares 172,795,463 17,536,549
Acquisition of Fixed Asset (Land) (228,571,220) -
Interest on SND 22,214,126 80,092
Income from Dividend 34,720,326 37,952,581
Net cash used in investing activities (507,410,091) (50,016,584)
Cash flow from financing activities
Net Increase/(Decrease) in Overdraft (2,863,892,516) (376,627,124)
Net Increase/(Decrease) ICB Loan- Pronodona Scheme (29,451,609) (27,477,129)
Interest Paid on Overdraft (210,342,810) (138,016,287)
Interest on ICB Loan - Pronodona Scheme (1,837,830) (3,812,312)
Increase share capital 4,000,000,000 500,000,000
Net cash used in financing activities 894,475,234 (45,932,852)
Increase/(decrease) in cash and cash equivalents 559,902,275 1,598,184
Cash and cash equivalents at the opening 21,374,639 19,776,455
Cash and cash equivalents at the closing 581,276,914 21,374,639 Financial statements

As at December 31, 2016
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
Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS), 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 BAS – 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 BAS 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 BAS-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 26-12-2016 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 31-12-2016.
c) Figures of the previous year have been rearranged, wherever considered necessary to conform to current year’s presentation.
d) The Statement of Cash flows for the year ended 31st December 2015 has been restated for fair presentation.

2016 2015
No. Particulars Note
Taka Taka
04. Property, Plant and Equipment

Details of Property, Plant and Equipment and Depreciation as on December 31, 2016 are shown in the
annexed Schedule - A. This is arrived at as follows:
Written Down Value (a-b) 327,715,305 126,334,270
Opening Balance - At Cost 176,908,853 176,908,853
Add: Addition during the year ( At Cost) 228,571,220 -
405,480,073 176,908,853
Less : Adjustment during the year - -
Closing Balance (a) 405,480,073 176,908,853
Accumulated Depreciation
Opening Balance 50,574,583 36,480,997
Add: Charged during the year 27,190,185 14,093,586
77,764,768 50,574,583
Closing Balance (b) 77,764,768 50,574,583
05 Margin Loan 2,500,642,443 2,363,503,024
As per Last Account 2,363,503,024 2,354,785,039
Add: During the year 1,836,503,044 1,438,263,990
4,200,006,068 3,793,049,029
Less: Received during the year 1,699,363,625 1,429,546,006
06 Accounts Receivable 35,890,284 17,631,297
BLI Securities Ltd. 06.1 35,328,355 3,748,872
AD Holdings Ltd. 06.2 399,584 409,183
Int. Leasing Securities Ltd. 06.3 121,654 2,260,237
National Securities & Consultants Ltd. 06.4 2,788 457,544
IIDFC 06.5 37,903 10,755,461
06.1 BLI Securities Ltd. 35,328,355 3,748,872
As per Last Account 3,748,872 479,335
Add/Less: Net balancing figure during the year 31,579,483 3,269,537

06.2 AD Holdings Ltd. 399,584 409,183
As per Last Account 409,183 345,726
Add/Less: Net balancing figure during the year (9,599) 63,457
06.3 Int. Leasing Securities Ltd. 121,654 2,260,237
As per Last Account 2,260,237 1,150,761
Add/Less: Net balancing figure during the year (2,138,583) 1,109,476
06.4 National Securities & Consultants Ltd. 2,788 457,544
As per Last Account 457,544 47,961
Add/Less: Net balancing figure during the year (454,756) 409,583
06.5 IIDFC 37,903 10,755,461
As per Last Account 10,755,461 -
Add/Less: Net balancing figure during the year (10,717,558) 10,755,461

2016 2015
Taka Taka
07 Advances, Deposits and Prepayments 79,461,626 251,911,612

Lease Rental (Eunoos Center) 07.1 14,802,960 22,204,440
Corporate Income Tax 07.2 51,291,888 41,408,879
Interior Decoration and Air Conditioning-(As per Last Account) 13,078,428 13,078,428
Security Deposits-(As per Last Account) 238,915 238,915
Office Space Purchase-(As per Last Account) - 174,780,200
Advance for Misc. Expenses 20,835 200,750
Advance for Salary 28,600 -
07.1 Lease Rental (Eunoos Center) 14,802,960 22,204,440
Less : Adjustment during the year 7,401,480 8,018,270
07.2 Corporate Income Tax 51,291,888 41,408,879
Add: Addition during the year 9,883,009 8,830,870
51,291,888 41,408,879
08 Investment in Quoted Shares 08.01 2,276,624,953 1,940,851,629
As per Last Account 1,940,851,629 1,852,802,372
Add: Net investment during the year 335,773,324 88,049,257
08.01 The total amount is invested as under:
Exim Bank Ltd. 97,872,791 97,872,791
Bay Leasing & Investment Ltd. 382,935,045 255,014,682
VIPB( Non Listed) 3,500,000 -
National Life Insurance Co. Ltd. 1,501,719,117 1,384,784,845
Asia Insurance Co. Ltd. 39,043,100 39,043,100
Delta Life Insurance Co. Ltd. 75,668,264 63,233,226
Rupali Life Insurance Co. Ltd. 9,203,333 1,673,266
Greemen One : Sceem Two 352,526 -
Appolo Ispat 5,358,122 -
Titas Gas 15,838,465 -
Generation Next Fashion Ltd 667,731 -
Beximco pharma 221,962 -
ACI Ltd. 38,231,777 -
BATA Shoes 1,434,152 -
Fortune Shoes Ltd.(IPO) 102,470 -
FU-Wang Ceramic 1,656,378 -
Unique Hotels & Resorts Ltd. 28,506,765 19,391,600
Bangladesh Shipping Corporation - 4,533,015
Prime Bank Ltd. 74,312,955 74,312,955
Orion Pharma Ltd - 992,148
2,276,624,953 1,940,851,629
09 Cash and Cash Equivalents 581,276,914 21,374,639

Cash in hand - -
Cash at bank 09.1 581,276,914 21,374,639

2016 2015
Taka Taka
09.1 Cash at Bank 581,276,914 21,374,639
Southeast Bank Ltd -CD A/C- 1100007409 5,398,400 47,300,701
Southeast Bank Ltd -SND-13100000785(Public Issue) 512,098,296 6,038,517
Southeast Bank Ltd -Al- Wadiah A/C- 11100006778 63,780,218 (31,964,579)
10 Share Capital 5,500,000,000 1,500,000,000

Authorised Capital
600,000,000 shares of TK. 10/- each 6,000,000,000 3,000,000,000
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 1,500,000,000
11 Retained Earnings (36,508,959) (95,581,382)
As per Last Account (95,581,382) 11,279,819
Add: Profit/Loss during the year 59,072,422 (106,861,201)
12 Margin Deposit 21,003,651 16,693,063
Add:During the year 230,147,989 255,653,970
246,841,052 275,713,175
Less: Paid during the year 225,837,401 259,020,112
13 Advance Received for Rent 13,095,140 19,091,280
Add:Received During the year - -
19,091,280 25,075,920
Less : Adjustment during the year 5,996,140 5,984,640
14 Collection in Transit 67,035,027 27,320,020
Add: Received During The Year 2,715,903,852 1,934,805,184
2,743,223,872 1,961,375,381
Less: Paid during the year 2,676,188,845 1,934,055,361

15 Loan From ICB 7,687,819 37,139,427
Add: Received during the year - 7,822,360
37,139,427 72,438,916
Less: Paid during the year 29,451,609 35,299,489
16 Provision for Corporate Income Tax 61,831,939 42,091,063

Add: Addition during the year (Tax on Dividend Income U/S 54) 19,740,876 7,590,516
61,831,939 42,091,063
17 Provision for Diminution in Value of Investments Schedule-B 114,303,939 153,125,465
Opening Balance 153,125,465 157,799,057
Add:/(Less): During the year (38,821,526) (4,673,592)

2016 2015
Taka Taka
18 Accrued Expenses 486,276 114,684,052
Interest on ICB Loan 44,846 216,646
Interest on Overdraft - 114,128,352
Excise Duty & Bank Charge 40,375 31,500
CDBL Bill 271,813 265,254
Audit Fee 40,000 40,000
News paper Bill 644 -
Other Expenses 88,598 -
Closing Allowance - 2,300
19 Other Liabilities 52,666,021 43,140,292
Accounts Payable (Others) 41,603,981 37,176,292
IPO Application Fund 10,702,600 5,964,000
Provident Fund 359,440 -
20 Other Income 3,785,285 3,358,080
Rental Income 3,587,040 3,358,080
Miscellaneous Income 198,245 -
21 Salary & Allowances 8,625,400 9,836,715
Salary & Allowances 6,544,600 6,985,411
Festival Bonus 661,100 625,400
Incentive Bonus - 453,000
Leave Fare Concession 1,046,600 1,123,471
Provident Fund Contribution 373,100 389,433
Leave Encashment - 104,000
Gratuity - 156,000
22 Financial Expenses 97,880,488 255,758,304
Interest on Bank Overdraft 96,214,458 252,144,639
Interest on ICB Loan 1,666,030 3,613,665
23 Provision for Diminution in Value of Investments 38,821,526 4,673,592
Opening Balance 153,125,465 157,799,057
Less: Required on December 31, 2016 114,303,939 153,125,465
Property, Plant and Equipment Schedule - A

Cost Depreciation
W.D.V as on
Name of Assets Balance as on Addition during Balance as on Rate of % Balance as on Charged during Balance as on 31.12.2016
01.01.2016 the year 31.12.2016 01.01.2016 the year 31.12.2016
Land 4,745,000 7,060,000 11,805,000 - - - 11,805,000
Buildings 144,803,147 221,481,220 366,284,367 10% 42,853,779 24,814,704 67,668,483 298,615,884
Furniture & Fixture 19,425,716 - 19,425,716 10% 3,768,841 1,565,688 5,334,529 14,091,187
Electrical Appliance 6,634,990 30,000 6,664,990 20% 2,692,588 789,480 3,482,068 3,182,922
Computer Software 1,300,000 - 1,300,000 50% 1,259,375 20,313 1,279,688 20,312
Total 176,908,853 228,571,220 405,480,073 50,574,583 27,190,185 77,764,768 327,715,305
375

Schedule to the Financial Statements
Diminution in Value of Investments Schedule-B

Net Difference
Particulars Cost Price Market Price
(Provision Required)
Exim Bank Ltd. 97,872,791 59,492,640 (38,380,151)

Bay Leasing & Investment Ltd. 382,935,046 318,854,883 (64,080,163)
VIPB( Non Listed) 3,500,000 - -
National Life Insurance Co. Ltd. 1,501,719,117 1,575,602,207 73,883,090
Asia Insurance Co. Ltd. 39,043,100 23,725,191 (15,317,909)
Delta Life Insurance Co. Ltd. 75,668,265 51,424,708 (24,243,557)
Rupali Life Insurance Co. Ltd. 9,203,333 8,349,626 (853,707)
Greemen One : Sceem Two 352,526 388,326 35,800
Appolo Ispat 5,358,121 7,407,421 2,049,300
Titas Gas 15,838,465 15,493,322 (345,143)
Generation Next Fashion Ltd 667,731 825,680 157,949
Beximco pharma 221,962 215,090 (6,872)
ACI Ltd. 38,231,778 29,538,938 (8,692,840)
BATA Shose 1,434,152 1,347,560 (86,592)
Fortune Shoes Ltd.(IPO) 102,470 520,548 418,078
FU-Wang Ceramic 1,656,379 1,934,471 278,092
Unique Hotels & Resorts Ltd. 28,506,766 24,487,632 (4,019,134)
Prime Bank Ltd. 74,312,955 39,212,775 (35,100,180)
Orion Pharma Ltd - -
2,276,624,957 2,158,821,018 (114,303,939)

Appendix-B
Financial Statements
of
Southeast Financial Services (UK) Ltd
SOUTHEAST FINANCIAL SERVICES (UK) LTD

DIRECTORS’ REPORT
FOR THE YEAR ENDED 31 DECEMBER 2016
The directors present their report and accounts for the year ended 31 December 2016
PRINCIPAL ACTIVITIES
The principal activity of the company in the year under review was MONEY REMITTANCE
DIRECTORS
The directors who served during the year and their interests in the share capital of the company were as follows:
2016 2015
No. No.
ALAMGIR KABIR, FCA 0 0
SHAHID HOSSAIN 0 0
MUHAMMAD NAZMUL HUDA AZAD 0 0
DIRECTORS RESPONSIBILITIES
The directors are responsible for preparing the Directors' Report and the financial statements in accordance with
applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year Under that law they have
elected to prepare the financial statements in accordance with UK Accounting Standards and applicable law (UK
Generally Accepted Accounting Practice)
The financial statements are required by law to give a true and fair view of the state of affairs of the company and of the
profit or loss for that period.
The report of the directors has been prepared in accordance with the special provisions within Part 15 of the Companies
Act 2006.
This report was approved by the board on 13 January 2017
MUHAMMAD NAZMUL HUDA AZAD

Director

ACCOUNTANTS’ REPORT TO THE BOARD OF DIRECTORS ON THE
FINANCIAL STATEMENTS OF SOUTHEAST FINANCIAL SERVICES (UK) LTD
In order to assist you to fulfill your duties under the Companies Act 2006, we have prepared for your approval the
accounts of SOUTHEAST FINANCIAL SERVICES (UK) LTD for the year ended 31 December 2016 as set out on pages 5 to 9
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 (CIMA), we are subject to its ethical and
other professional requirements which are detailed on their website.
This report is made solely to the Board of Directors of SOUTHEAST FINANCIAL SERVICES (UK) LTD, as a body, in accordance
with the terms of our engagement letter dated 28 December 2011. 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 Directors of SOUTHEAST FINANCIAL SERVICES (UK) LTD, as a body, in this report, in accordance
with the requirements of the Chartered Institute of Management Accountants (CIMA) as detailed on their 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 Board of Directors 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 profitability of
SOUTHEAST FINANCIAL 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 2017

PROFIT AND LOSS ACCOUNT
2016 2015
Note
£ £
TURNOVER 2 176,454 180,698

GROSS PROFIT 176,454 180,698
Distribution costs (2,963) (702)
Administrative expenses (164,503) (146,245)
OPERATING PROFIT 3 8,988 33,751
PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION 8,988 33,751
PROFIT ON ORDINARY ACTIVITIES AFTER TAXATION 8,988 33,751

PROFIT FOR THE FINANCIAL YEAR 8,988 33,751

BALANCE SHEET
AT 31 DECEMBER 2016
2016 2015
Notes
£ £
FIXED ASSETS
Tangible assets 5 21,972 29,199
Current Asset
Debtors (amounts falling due within one year) 6 258,055 207,683
Cash at bank and in hand 26,182 29,862
284,237 237,545
CREDITORS: Amounts falling due within one year 7 193,925 163,448
NET CURRENT ASSETS 90,312 74,097
TOTAL ASSETS LESS CURRENT LIABILITIES 112,284 103,296
CAPITAL AND RESERVES
Called up share capital 8 300,000 300,000

Profit and loss account 9 (187,716) (196,704)
SHAREHOLDERS' FUNDS 112,284 103,296
For the year ending 31 December 2016 the company was entitled to exemption under section 477 of the Companies
Act 2006 relating to small companies.
The members have not required the company to obtain an audit in accordance with section 476 of the Companies Act
2006.
The directors acknowledge their responsibilities for complying with the requirements of the Act 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.
Approved by the board on 13 January 2017 and signed on
their behalf by
MUHAMMAD NAZMUL HUDA AZAD

Director

NOTES TO THE ACCOUNTS
1. ACCOUNTING POLICIES
1a. Basis Of Accounting
The accounts have been prepared under the historical cost convention and in accordance with the Financial Reporting
Standard for Smaller Entities (effective January 2015).
1b. Cash Flow Statement
The Company is exempt from including a statement of cash flows in its accounts in accordance with Financial
Reporting Standard for Smaller Entities (effective January 2015).
1c. Depreciation
Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.
Short Leasehold Properties straight line 14.28%
Fixtures and Fittings reducing balance 20%
Equipment reducing balance 20%
1d. Turnover
Turnover represents the invoiced value of goods and services supplied by the company, net of value added tax and
trade discounts.
2. TURNOVER
The turnover and pre-tax result is attributable to MONEY REMITTANCE.
2016 2015
£ £
Remittance Commissions 86,752 93,049
Exchange Gain 80,646 75,016
Fees Income 9,056 12,633
176,454 180,698
3. OPERATING PROFIT
Operating Profit is stated after charging:
Depreciation 8,418 9,175
8,418 9,175
4. TAX ON ORDINARY ACTIVITIES Financial statements
5. TANGIBLE FIXED ASSETS

Short Fixtures
Leasehold and Total
Equipment
Properties Fittings
£ £ £ £
Cost
At 1 January 2016 30,000 47,262 8,635 85,897
Additions - 311 880 1,191
At 31 December 2016 30,000 47,573 9,515 87,088
Depreciation
At 1 January 2016 20,700 30,368 5,630 56,698
For the year 4,200 3,441 777 8,418
At 31 December 2016 24,900 33,809 6,407 65,116
Net Book Amounts
At 31 December 2016 5,100 13,764 3,108 21,972
At 31 December 2015 9,300 16,894 3,005 29,199

NOTES TO THE ACCOUNTS
2016 2015
£ £
6. DEBTORS
Amounts falling due within one year:
Trade debtors 244,526 193,104
Other debtors 13,529 14,579
258,055 207,683
Trade debtors represent money in transit from merchant service providers. Other Debtors balance includes
Prepayments of £2529, Rent Deposit of £9000 and Amount Receivable from Parent of £2000
7. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Taxation and social security 3,118 2,991
Other creditors 190,807 160,457
193,925 163,448
Other creditors balance includes TT Payable balance of £186,046, Accrued Expenses of £2676 and Suspense Account
balance of £2085. TT Payable balance is not reconciled with the Parent Company balance
8. SHARE CAPITAL
Allotted, issued and fully paid:
300000 Ordinary shares of £ 1 each 300,000 300,000
300,000 300,000
9. PROFIT AND LOSS RESERVE
Opening balance (196,704) (230,455)
Profit for the year 8,988 33,751
(187,716) (196,704)

TRADING AND PROFIT AND LOSS ACCOUNT
2016 2015
£ £
Turnover 176,454 180,698
Cost of Sales:
Gross Profit 176,454 180,698
176,454 180,698
Less:
Distribution costs 2,963 702
Administrative expenses 164,503 146,245
167,466 146,947
Net profit for the year before taxation 8,988 33,751
Net profit for the year after taxation 8,988 33,751
Retained losses brought forward (196,704) (230,455)
Retained losses carried forward (187,716) (196,704)
This page does not form part of the Company's Statutory Accounts and is prepared for the information of the Directors
only.

PROFIT AND LOSS ACCOUNT SUMMARIES
2016 2015
£ £
Distribution Costs:
Advertising and sales promotion 2,839 531
Travel and Subsistence 124 171
2,963 702
Administrative Expenses:
Rent, Rates & Insurance 33,645 31,987
Business Insurance 904 882
Heat, light & water 1,558 1,927
Waste Disposal - 192
Cleaning 972 589
Wages - regular 72,020 64,585
Staff Bonus - 1,000
Staff welfare 1,027 407
Training - 253
Repairs & maintenance 955 1,358
Computer and IT costs 420 350
Accountancy fees 3,800 3,800
Legal and Professional expenses 150 1,339
Stationery & office supplies 2,918 2,379
Telephone 1,734 2,612
Fees & Subscriptions 989 933
Customer Due Diligence 432 432
Security costs 908 651
Bank charges 33,653 21,394
Depreciation and Amortisation:

Depreciation of short leasehold properties 4,200 4,200
Depreciation of fixtures and fittings 3,441 4,224
Depreciation of equipment 777 751
164,503 146,245
This page does not form part of the Company's Statutory Accounts and is prepared for the information of the Directors
only.

455/8986421677
CORPORATION TAX COMPUTATION
FOR THE PERIOD 01/01/2016 - 31/12/2016
£
Profit as per Accounts 01/01/2016 - 31/12/2016 8,988
Add:
Depreciation & Asset Disposal 8,418
8,418
Less:
General Pool Allowances 7,005
(7,005)
Trading Profit 10,401
Losses brought forward and used against profits (10,401)
Capital Allowances
General Pool
01/01/2016 - 31/12/2016
pool b/f 38,916
additions
disposals
38,916
wda (18%) 7,005 7,005
wdv 31,911
Corporation tax chargeable
Trading and professional profits 10,401.00
Losses brought forward 10,401.00
Net trading and professional profits .00
Bank building society or other interest and profits .00
Income from UK land and buildings .00
Annual profits and gains not falling under any heading .00
Profit before charges and reliefs .00
Profits chargeable to corporation tax .00
Totals
Tax
Tax payable .00
Tax reconciliation
MEMO: Summary of trading losses

Losses brought forward 186,579
Losses brought forward used against profits 10,401
Losses carried forward 176,178
Appendix-C
of
Southeast Financial Services (Australia) Pty Ltd

ABN 40 160 673 165
FINANCIAL REPORT
Prepared by:
SolTax Pty Ltd
Level 2, 356 Chapel Road
Bankstown NSW 2200

ABN 40 160 673 165
FINANCIAL REPORT
Contents
Page
Trading Statement 2
Balance Sheet 3
Notes to Financial Statement 4
Director’s Declaration 5
Compilation Report 6

ABN 40 160 673 165
TRADING, PROFIT AND LOSS STATEMENT

$ $
INCOME
Commission Collected 438.76 4,794.24
Exchange gain 4,416.15 7,480.00
Interest Earned 0.09 409.31
Other Income 17,063.80 90.00
21,918.80 12,773.55
EXPENDITURE
Advertising - 110.00
Bank charges 179.02 388.33
Depreciation - SB general pool 2,614.13 8,546.99
Electricity - 822.95
Entertainment - -
Insurance 149.36 1,136.93
Legal Services - 834.19
Motor vehicle expenses: - -
Other vehicle expenses 35.2 725.90
Parking - -
Office supplies - 89.57
Postage - 47.00
Printing and Stationery - 89.57
Rental expenses 6,319.08 48,488.00
Repair and maintenance - 187.00
Security - 416.46
Superannuation 415.00 4,519.98
Telephone, mobile and fax 372.25 1,728.44
Wages 5,300.00 30,482.75
Total 15,384.04 98,614.06
PROFIT/LOSS BEFORE INCOME TAX 6,534.76 (85,840.51)


ABN 40 160 673 165
BALANCE SHEET
As on 31 December 2016

$ $
ASSETS
Current Assets
Cash on Hand 763.45 32.20
Westpac Cheque Account - 321645 19.15 2,323.87
St George Freedom Account- 10775735 2,839.08 30,006.73
St George Saver Account 158.11 -
SEBL Account 883.68 383.68
Westpac Cash Reserve - 321653 117.44 6,902.37
Receivables 13,860.87 12,467.99
Office Bond Deposit 19,119.04 19,119.04
37,760.82 71,235.88
Non-current Assets
SB general pool 42,652.06 42,652.06
Less accumulated depreciation (28,109.69) (25,607.81)
14,542.37 17,044.25
TOTAL ASSETS 52,303.19 88,280.13
LIABILITIES
Current Liabilities
Remittance Payable - -
PAYG Withhold Payable 11,696.35 10,958.85
SEBL Account 29,526.62 62,293.46
Rent Payable 12,016.29 15,809.07
Superannuation payable 4,624.99 4,209.99
Provision for GST (24,734.28) (17,629.70)
33,129.97 75,641.67
EQUITY
Share Capital 312,082.90 312,082.90
Retained Earnings
Accumulated Losses beginning of the year (299,444.44) (213,603.93)
Prior Year Adjustments - -
Gain/Losses for the Period 6,534.76 (85,840.51)
TOTAL EQUITY (292,909.68) (299,444.44)
Total Liability & Equity 52,303.19 88,280.13

ABN 40 160 673 165
NOTES TO THE FINANCIAL STATEMENTS
For the period ended 31 December 2016
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNT POLICY

a. This financial report is a 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 with 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:
b. 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.
c. Inventories
Inventories are measured at the lower of its cost and net realizable value. Costs are assigned on a first-in first-
out basis and include direct materials, direct labour, and appropriate proportion of variable and fixed overhead
expenses.

ABN 40 160 673 165
DIRECTORS’ DECLARATIONS
The directors have determined that the company is not a reporting entity. The directors have determined that this
special purpose financial report should be prepared in accordance with the accounting policies outlines in Note 1 to the
financial statements.
The directors of the company declared that:
1. The financial statements and the notes attached present fairly the company’s financial position as at 31/12/2016
and its performance for the period ended on that date in accordance with the accounting policies described in
Note 1 to the financial statements;
2. In the directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as
and when they become due and payable.
This declaration is made in accordance with the resolution of the Board of Directors:
Manager & Director:
Khandoker Ziaul Karim

Dated: 16/01/2017

ABN 40 160 673 165
COMPILATION REPORT
Scope
On the basis of information provided by the directors of Southeast Financial Services (Australia) Pty Ltd, we have compiled
in accordance with APES 315: Compilation of Financial Information the special purpose financial report of Southeast
Financial Services (Australia) Pty Ltd for the period ended 31/12/2016.
The specific purpose for which the special purpose financial report has been prepared is set out in Note 1. The extent to
which Accounting Standards and other mandatory professional reporting requirements have or have not been adopted
in the preparation of the special purpose financial report is set out in Note 1.
The directors are solely responsible for the information contained in the special purpose financial report and have
determined that the accounting policies used are consistent with the financial reporting requirements of Southeast
Financial Services (Australia) Pty Ltd constitution and are appropriate to meet the needs of the directors and members
of the company.
Our procedures use accounting expertise to collect, classify and summarize the financial information, which the directors
provided into a financial report. Our procedures do not include verification or validation procedures. No audit or review
has been performed and accordingly no assurance is expressed.
To the extent permitted by law, we do not accept liability for any loss or damage which any person, other than the
company, may suffer arising from any negligence on our part. No person should rely on the special purpose financial
report without having an audit or review conducted.
The special purpose financial report was prepared for the benefit of the directors and members of Southeast Financial
Services (Australia) Pty Ltd and the purpose identified above. We do not accept responsibility to any other person for the
contents of the special purpose financial report.
Name of the Firm SolTax Pty Ltd
Name of the Partner Hasan Shahiad
SolTax Pty Ltd

Level 2, 356 Chapel Road
Bankstown NSW 2200
Date: 16/01/2017
Appendix-D
of
Southeast Exchange Company (South Africa) Pty Ltd
SOUTHEAST EXCHANGE COMPANY (SOUTH AFRICA) (PTY) LTD

(REGISTRATION NUMBER 2011/008619/07)
ANNUAL FINANCIAL STATEMENTS

Southeast Exchange Company (South Africa) (Pty) Ltd

Annual Financial Statements for the year ended 31 December 2016
General Information
Country of incorporation and domicile South Africa
Nature of business and principal activities Facilitator of funds remittance
Directors Alamgir Kabir
Shahid Hossain
Registered office 9 Dolly Rathebe Road
Corner Mint Road
Fordsburg
Johannesburg
2092
Business address 9 Dolly Rathebe Road
Corner Mint Road
Fordsburg
Johannesburg
2092
Holding company Southeast Bank Limited
incorporated in Bangladesh
Bankers Standard Bank of South Africa
First National Bank
Auditors GL Palmer and Company
Registered Auditors
Secretaries KPMG Inc
Tax reference number 9084402180
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 03 February 2017

Index
The reports and statements set out below comprise the annual financial statements presented to the shareholder:
Contents page
Independent Auditors' Report 3-5

Directors' Responsibilities and Approval 6
Directors' Report 7 -9
Statement of Financial Position 10
Statement of Comprehensive Income 11
Statement of Changes in Equity 12
Statement of Cash Flows 13
Accounting Policies 14 -16
Notes to the Annual Financial Statement 17 -20
The following supplementary information does not form part of the annual financial statements and is unaudited:
Detailed Income Statement 21 - 22
Independent Auditors’ Report

To the shareholder of Southeast Exchange Company (South Africa) (Pty) Ltd
Opinion
We have audited the annual financial statements of Southeast Exchange Company (South Africa) (Pty) Ltd. Set out on
pages 10 to 20, which comprise the Statement of Financial Position as at 31 December 2016, 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) (Pty) Ltd As at 31 December 2016, and its financial performance and cash flows 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 the International Standards on Auditing. Our responsibilities under those
standards are further described in the Auditor's 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 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 judgment, 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.
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 the
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 the International Standards on Auditing, we exercise professional judgement 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
03 February 2017

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 statements 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
auditor is 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 judgments 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 minimize it by ensuring that appropriate infrastructure, 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 2017 and, in the 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 7 to 22, which have been prepared on the going concern basis, were
approved and signed by the directors on 03 February 2017:
Alamgir Kabir M. Kamal Hossain
Johannesburg

Directors’ Report
The directors have pleasure in submitting their report on the annual financial statements of Southeast Exchange
Company (South Africa) (Pty) Ltd for the year ended 31 December-2016.
1. Nature of business
Southeast Exchange Company (South Africa) (Pty) Ltd was incorporated 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 of the company are set out in these annual
financial statements.
3. Share capital
2016 2015
Authorised Number of Shares
Ordinary shares 4 000 4 000
2016 2015 2016 2015

Issued R R Number of Shares
Ordinary shares 120 120 120 120
There have been no changes to the authorised or issued share capital during the year under review.
4. Control over unissued shares
The unissued ordinary shares are the subject of a general authority granted to the directors in terms of section 38 of the
Companies Act 71 of 2008.
5. Dividends
No dividends were declared or paid to the shareholder during the year under review (2015-Nil)
6. Directors
The directors in office at the date of this report are as follows :
Directors
Alamgir Kabir
Shahid Hossain
There have been no changes to the directorate for the year under review.
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 2016 the company's investment in property , plant and equipment amounted to R493 140(2015 -R573
536), of which R1 14 840(2015 - R48 194) were introduced in the current year through additions .

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 2016.
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 of the
2017 financial year.
14. Secretaries
The company secretaries are KPMG Inc.
Business address 85 Empire Road

Parktown
Johannesburg
2198
15. Date of authorisation for issue of financial statements
The annual financial statements have been authorised for issue by the directors on 03 February 2017. No authority was
given to anyone to amend the financial statements after the date of issue .

Statement of financial position as at 31 December 2016
Figures in Rand Note 2016 2015
Assets
Non-current Assets 2 493,140 573,536

Property, plant and equipment 3 25,017 19,622
Deferred tax 518 157 593,158
Current Assets
Trade and other receivables 4 971 689 26 282
Current tax receivable 122 764 -
Cash and cash equivalents 5 11 016 877 9 651 392
12 111 330 9 677 674
12 629 487 10 270 832
Total Assets
Equity and liabilities

Equity
Share capital 6 6 632 179 6 632 179
Retained income 2 741 705 (318 597)
9 373 884 6 313 582
Liabilities
Non-Current Liabilities 7 89 347 70 077
Operating lease liability
Current Liabilities
Trade and other payables 8 3 166 256 3 887 173
Total Liabilities 3 255 603 3 957 250
Total Equity and Liabilities 12 629 487 10 270 832

Statement of Comprehensive Income
12 months 10 months
ended ended
Figures in Rand Note
31 December 31 December
2016 2015
Revenue 9 6 935 214 1 669 486

Other income 10 45 363 800
Operating expenses (3 427 693) (1 666 378)
Operating profit 3 552 884 3 908
Investment revenue 11 593 263 494 080
Finance costs 12 (4) -
Profit before taxation 4 146 143 497 988
Taxation 13 (1 085 841) 6 809
Profit for the year 3 060 302 504 797
Other comprehensive income - -
Total Comprehensive income for the year 3 060 302 504 797

Statement of Changes in Equity
Share
Share Total share Retained
Figures in Rand Capital Total equity
premium capital income
and Reserves
Balance at 01 March 2015 6 594 179 - 6 594 179 (823 394) 5 770 785
Profit for the year - - - 504 797 504 797
Other comprehensive income - - - - -
Total comprehensive income for the period - - - 504 797 504 797
Shareholder's contributions 38 000 38 000 - 38 000
Total Changes 38 000 38 000 - 38 000
Balance at 31 December 2015 6 594 179 38 000 6 632 179 (318 597) 6 313 582
Profit for the year 3 060 302 3 060 302
Other comprehensive income - - - - -
Total comprehensive income for the year - - - 3 060 302 3 060 302
Shareholder's contribution 38 000 (38 000) - - -
Total Changes 38 000 (38 000) - - -
Balance at 31 December 2016 6 632 179 - 6 632 179 2 741 705 9 373 884
Note 6 6 6

Statement of Cash Flows
12 months 10 months
ended ended
Figures in Rand Note
31 December 31 December
2016 2015
Cash flows from operating activities
Cash generated from operations 14 2 101 066 2 193 821

Interest income 593 263 494 080
Finance costs (4) -
Tax paid 15 (1 214 000) -
Net cash from operating activities 1 480 325 2 687 901
Cash flows from investing activities
Purchase of property, plant and equipment 2 (114 840) (48 194)
Cash flows from financing activities
Proceeds on share premium 6 - 38 000
Total cash movement for the year 1 365 485 2 677 707
Cash at the beginning of the year 9 651 392 6 973 685
Total cash at end of the year 5 11 016 877 9 651 392

Accounting Policies
1. Presentation of annual financial statements

The annual financial statements have been prepared 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 is carried at cost less accumulated depreciation and accumulated impairment losses.
Cost include 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 recognised in the carrying amount of an
item of property, plant and equipment, the carrying amount of the replaced part is derecognised.
Depreciation is provided using the straight-line method to write down the cost, less estimated residual value over the
useful life of the property, plant and equipment as follows:
Average useful
Item Depreciation
life
Leasehold improvements Straight line 5 years
Office equipment Straight line 3 years
Computer equipment Straight line 3 years
The residual value, depreciation method and useful life of each asset are reviewed only where there is an indication that
there has been a significant change from the previous estimate.
1.2 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.
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.
1.2 Financial instruments (continued)
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 are
measured at cost less impairment.

Accounting Policies
1.3 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.
1.4 Leases
A lease is classified as a 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.
1.5 Share capital and equity
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.
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 performed.
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.

Notes to the Annual Financial Statements
12 months 10 months
ended 31 ended 31
Figure in Rand
December December
2016 2015
2. Property, plant and equipment
2016 2015
Accumulated Carrying Accumulated Carrying
Cost Cost
depreciation value depreciation value
Leasehold improvements 625 800 (260 750) 365 050 600 000 (130 000) 470 000
Office equipment 20 093 (6 613) 13 480 10 493 (2 049) 8 444
Computer equipment 238 365 (123 755) 114 610 158 925 (63 833) 95 092
Total 884 258 (391 118) 493 140 769 418 (195 882) 573 536
Reconciliation of property, plant and equipment - 2016

Opening
Additions Depreciation Total
balance
Leasehold improvements 470 000 25 800 (130 750) 365 050
Office equipment 8 444 9 600 (4 564) 13 480
Computer equipment 95 092 79 440 (59 922) 114 610
573 536 114 840 (195 236) 493 140
3. Deferred tax
Deferred tax asset
Operating lease accrual 25 017 19 622
Reconciliation of deferred tax asset
At beginning of year 19 622 12 812

Movement in operating lease accrual 5 395 6 810
25 017 19 622
4. Trade and other receivables

Cash in transit 946 889 -
Deposits 24 800 24 800
Prepayments - 1 482
971 689 26 282
5. Cash and cash equivalents

Cash and cash equivalents consist of:
Cash on hand 733 108 -
Bank balances 10 283 769 9 651 392
11 016 877 9 651 392
Included in the above bank balances figure at year end, is an amount of R 5 000 000 (2015 - R 5 000 000) which
is an unimpaired capital requirement of the South African Reserve Bank.

12 months 10 months
ended 31 ended 31
Figure in Rand
December December
2016 2015
6. Share capital
Authorised
4000 Ordinary shares of no par value
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 6 632 179 6 594 179
Reserves - 38 000
6 632 179 6 632 179
Reserves consist of capital contributions made by the shareholder.
7. Operating lease accrual

Lease accrual 89 347 70 077
8. Trade and other payables
Trade payables 2 922 368 3 764 773

Value added tax 52 402 -
Accrual for audit fees 74 100 122 400
Other payables 117 386 -
3 166 256 3 887 173
9. Revenue
Commissions and transaction fees 4 237 061 1 861 181
Exchange gain income/(loss) 2 698 153 (191 695)
6 935 214 1 669 486
10. Other income

Query, cancellation and amendment income - 200
Sundry income 45 363 600
45 363 800
11. Investment revenue

Interest revenue
Bank 593 263 494 080
12. Finance costs

Interest paid 4 -
13. Taxation
Major components of the tax expense (income)
Current
Local income tax - current period 1 091 236 -
Deferred
Deferred tax (5 395) (6 809)
1 085 841 (6 809)

12 months 10 months
ended 31 ended 31
Figure in Rand
December December
2016 2015
Reconciliation of the tax expense
Reconciliation between accounting profit and tax expense.
Accounting profit 4 146 143 497 988
Tax at the applicable tax rate of 28% (2015: 28%) 1 160 920 139 437
Tax effect of adjustments on taxable income

Non-deductible expenses 94 617 78 848
Temporary differences (89 222) (72 038)
Assessed tax loss brought forward (75 079) (221 326)
1 091 236 (75 079)
14. Cash generated from operations
Adjustments for:
Depreciation 195 236 144 306
Interest received (593 263) (494 080)
Finance costs 4 -
Movements in operating lease assets and accruals 19 270 24 318
Changes in working capital:
Trade and other receivables (945 407) 116 188
Trade and other payables (720 917) 1 905 101
2 101 066 2 193 821
15. Tax paid
Current tax for the year recognised in profit (loss) or loss (1 091 236) -
Balance at end of the year (122 764) -
(1 214 000) -
16. Directors' remuneration
No emoluments were paid to the directors or any individuals holding a prescribed office during the year.
17. Auditors' remuneration
Fees 65 000 52 500

Adjustment for previous year 40 123 -
105 123 52 500
18. Related parties
Relationships
Holding company Southeast Bank Limited
Related party balances and transactions with entities over which the company has control, joint control
or significant influence
Related party balances

Amounts included in Trade Payables regarding related parties
Southeast Bank Limited 2 922 368 3 764 773
19. Comparative figures
The comparative figures are for a 10 month period. Certain comparative figures have been reclassified to conform with
changes in presentation in the current year.

Detailed Income Statement
12 months 10 months
Figure in Rand Note ended 31 ended 31
Revenue 4 237 061 1 861 181

Commissions and transaction fees 2 698 153 (191 695)
Exchange gain income/(loss) 9 6 935 214 1 669 486
Other income
Query, cancellation and amendment income - 200
Sundry income 45 363 600
Interest received 11 593 263 494 080
638 626 494 880
Expenses (Refer to next page) (3 427 693) (1 666 378)

Operating profit 4 146 147 497 988
Finance costs 12 (4) -
Taxation 13 (1 085 841) 6 809
Profit for the year 3 060 302 504 797
The supplementary information presented does not form part of the annual financial statements and is unaudited

Detailed Income Statement
12 months 10 months
Figure in Rand Note ended 31 ended 31
Operating expenses
Accounting fees 128 187 28 342
Advertising 62 264 30 301
Auditors remuneration 17 105 123 52 500
Bank charges 403 867 134 804
Cash carrying charges 638 699 -
Cleaning - 19 000
Computer expenses 30 531 -
Depreciation 195 236 144 306
Employee costs 750 469 380 000
Entertainment 51 642 30 335
Insurance 29 264 -
Lease rentals on operating lease 337 919 281 599
Municipal expenses 25 179 23 000
Office expenses 8 862 -
Postage 16 892 4 450
Printing and stationery 81 675 51 625
Profit and loss on exchange differences 180 131 -
Rates and taxes - 746
Repairs and maintenance 44 730 31 804
Security 215 672 385 766
Staff costs 1 746 -
Telephone and fax 53 855 31 374
Travel - local 65 750 36 426
3 427 693 1 666 378
The supplementary information presented does not form part of the annual financial statements and is unaudited
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
MANCOM Management Committee
NII Net Interest Income
NIM Net Interest Margin
NPL Non Performing Loan
OBU Of 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
Standard
Disclosure
Checklist
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. 85
Adequate representation of non executive directors i.e. one third of the Board, subject to a
1.2 87
minimum of two
At least one independent director on the board and disclosure / affirmation of the Board on
1.3 87
such director’s independence.
1.4 Chairman to be independent of CEO 88
Responsibilities of the Chairman of the Board appropriately defined and disclosed. Disclosure
1.5 89
of independence of Non Executive Directors
Existence of a scheme for annual appraisal of the boards performance and disclosure of the
1.6 89
same.
1.7 Disclosure of policy on annual evaluation of the CEO by the Board. 90
Disclosure of policy on training (including details of the continuing training program) of
1.8 directors and type and nature of training courses organized for directors during the year 90
Existence of a scheme for annual appraisal of the boards performance
At least one director having thorough knowledge and expertise in finance and accounting to
1.9 provide guidance in the matters applicable to accounting and auditing standards to ensure 91
reliable financial reporting.
Disclosure of number of meetings of the board and participation of each director (at least 4
1.10 91
meetings are required to be held)
Directors issue a report on compliance with best practices on Corporate Governance that is
1.11 91
reviewed by the external auditors
2. VISION / MISSIONS AND STRATEGY
Company’s vision / mission statements are approved by the board and disclosed in the annual
2.1 7-8
report.
2.2 Identification of business objectives and areas of business focus disclosed 9
2.3 General description of strategies to achieve the company's business objectives 10-11
3. AUDIT COMMITTEES
3.1 Appointment and Composition 93
3.1.1 Whether the Audit Committee Chairman is an independent Non – Executive Director 93
Whether it has specific terms of reference and whether it is empowered to investigate /
3.1.2 144-145
question employees and retain external counsel
3.1.3 More than two thirds of the members are to be Non Executive Directors 87
All members of the audit committee to be financially literate and at least one member to have
3.1.4 93
expert knowledge of finance and accounting.
3.1.5 Head of internal audit to have direct access to audit committee 93
The committee to meet at least four times a year and the number of meetings and
3.1.6 93
attendance by individual members disclosed in the annual report.
3.2 Objectives & Activities
Statement on Audit Committee’s review to ensure that internal controls are well conceived
3.2.1 145
properly administered and satisfactorily monitored
Statement to indicate audit committees role in ensuring compliance with Laws, Regulations
3.2.2 145
and timely settlements of Statutory dues
3.2.3 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 action is
being taken
- Review and approve any non audit work assigned to the external auditor and ensure that
such work does not compromise the independence of the external auditors. 144-146
- Recommend external auditor for appointment/ reappointment
Statement on Audit committee involvement in selection of appropriate accounting policies
3.2.4
that are in line will applicable accounting standards and annual review.
Statement of Audit Committee involvement in the review and recommend to the Board of
3.2.5
Directors, annual and interim financial releases
3.2.6 Reliability of the management information used for such computation
4. INTERNAL CONTROL & RISK MANAGEMENT
4.1 Statement of Director's responsibility to establish appropriate system of internal control 82
Narrative description of key features of the internal control system and the manner in which
4.2 144-145, 160-161
the system is monitored by the Board, Audit Committee or Senior Management.
4.3 Statement that the Director's have reviewed the adequacy of the system of internal controls 82-83
4.4 Disclosure of the identification of risks the company is exposed to both internally & externally 161-165
4.5 Disclosure of the strategies adopted to manage and mitigate the risks 124-125
5. ETHICS AND COMPLIANCE
Disclosure of statement of ethics and values, covering basic principles such as integrity,
5.1 14-15
conflict of interest, compliance with laws and regulations etc..
Dissemination / communication of the statement of ethics & business practices to all directors
5.2 54,96
and employees and their acknowledgement of the same
Board’s statement on its commitment to establishing high level of ethics and compliance
5.3 95
within the organization
Establishing effective anti-fraud programs and controls, including effective protection of
5.4 147-148
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 97
Disclosure of the composition of the committee (majority of the committee should be non-
6.2 97
executive directors, but should also include some executive directors)
Disclosure of key policies with regard to remuneration of directors, senior management and
6.3 97
employees
6.4 Disclosure of number of meetings and work performed 95-96
6.5 Disclosure of remuneration of directors, chairman, chief executive and senior executives. 97
7. HUMAN CAPITAL
Disclosure of general description of the policies and practices codified and adopted by
the company with respect to Human Resource Development and Management, including
7.1 191-192
succession planning, merit based recruitment, performance appraisal system, promotion and
reward and motivation, training and development, grievance management and counseling.
7.2 Organizational Chart 25

8. COMMUNICATION TO SHAREHOLDERS & STAKEHOLDERS
Disclosure of the Company's policy / strategy to facilitate effective communication with
8.1 97-98
shareholders and other stake holders
Disclosure of company’s policy on ensuring participation of shareholders in the Annual
8.2 General Meeting and providing reasonable opportunity for the shareholder participation in 97-98
the AGM.
9. ENVIRONMENTAL AND SOCIAL OBLIGATIONS
Disclosure of general description of the company's policies and practices relating to social and
9.1
environmental responsibility of the entity
186-88
Disclosure of specific activities undertaken by the entity in pursuance of these policies and
9.2
practices
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 12-15
e.g., the number of employees, revenue and number of countries in which the organization operates 211
highlighting, in particular, significant changes from prior periods 219
• Significant factors affecting the external environment and the organization’s response 190
(include aspects of the legal, commercial, social, environmental and political context that affect the 70-71
organization’s ability to create value in the short, medium or long term) 53
Eg:
• The legitimate needs and interests of key stakeholders
• Macro and micro economic conditions stability, globalization, and industry trends
• Market forces, such as the relative 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
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
80-98
requirements influence the design of the governance structure
• Specific processes used to make strategic decisions and to establish and monitor the culture of the
organization, including its attitude to risk and mechanisms for 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
Items Page No.

• 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.
Capitals 214-215
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 189
An integrated report need to identify the various forms of capitals which are essential for the success of
its business operations.
Eg: financial, manufactured, intellectual , human, social and relationship,and natural,
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:
• 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 19
opportunities, and performance (including KPIs and financial considerations, like cost containment
and revenues).
Inputs 206-211
An integrated report shows how key inputs relate to the capitals on which the organization depends, 218-219
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.
Items Page No.

Outputs
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)
72-76
• 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)
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 to key
stakeholders’ legitimate needs and interests
• The linkages between past and current performance, and between current performance and the 197-215
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 and opportunities

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?
This can include identifying:

• The specific source of risks and opportunities, which can be internal, external or, commonly, a mix 158-165
of the two. 166-177
• 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 or to create value from key
opportunities, including the identification of the associated strategic objectives, strategies, policies,
targets and KPIs.
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
• 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:

• 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:
9-11
• 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.
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:
9
160-165
• 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, relevantinformation
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.
Items Page No.

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
• Identification of the role of those charged with governance and key personnel in the identification
189
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).
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 189
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
Conciseness
An integrated report should be concise.
9-10
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
3.2 Reliability and completeness
An integrated report should include all material matters, both positive and negative, in a 189
balanced way and without material error
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 198-200
• 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 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).
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 189
- Content elements
- Past , Present & Future
- Finance and other information
3.5 Materiality
An integrated report should disclose information about matters that substantively affect the 189-190
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 189
• any qualifications arising from the assurance, and the nature of the relationship between the
organization and the assurance providers
SAFA Standard Disclosure Index

Disclosure checklist to the key sections of the Annual Report - 2016
Items Ref. Page No.

CORPORATE OBJECTIVES, VALUES & STRUCTURE CLARITY AND PRESENTATION
Vision and Mission 6-8
Overall strategic objectives 9
Core values and code of conduct/ethical principles 12-15
Profile of the Company 17
Director’s profiles and their representation on Board of other companies & Organizations Chart 36-47,25
MANAGEMENT REPORT AND ANALYSIS INCLUDING DIRECTOR’S REPORT / CHAIRMAN’S REVIEW/CEO’S REVIEW ETC.
A general review of the performance of the company 50-56
Description of the performance of the various activities / products / segments of the company
72-76
and other companies of the group during the period under review.
A brief summary of the Business and other Risks facing the organization and steps taken to
158-165
effectively manage such risks
A general review of the future prospects/outlook. 28,55-56
Information on how the company contributed to its responsibilities towards the staff (including
192,224-225
health & safety)
Information on company's contribution to the national exchequer and to the economy 78,226
SUSTAINABILITY REPORTING
Corporate Social Responsibility (CSR) Initiatives 54,182-185
Environment Related Initiatives 186-187
Environmental and Social Obligations 188
Integrated Reporting 189-190
APPROPRIATIONS 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 272-290
Impairment of Assets
Changes in accounting policies/Changes in accounting estimates
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
206-211,362-363
- Segment Revenue
- Segment Results
- Turnover
- Operating profit
- Carrying amount of Net Segment assets
FINANCIAL STATEMENTS (INCLUDING FORMATS)
Disclosures of all contingencies and commitments 322
Comprehensive related party disclosures 333
Disclosures of Remuneration & Facilities provided to Directors & CEO 327-328
Statement of Financial Position / Balance Sheet and relevant schedules 267
Income Statement / Profit and Loss Account and relevant schedules 269
Items Ref. Page No.

Statement of Changes in Equity / Reserves & Surplus Schedule 271
Disclosure of Types of Share Capital 317
Statement of Cash Flow 270
Consolidated Financial Statements (CFS) 262
Extent of compliance with the core IAS/IFRS or equivalent National Standards 288
Disclosures / Contents of Notes to Accounts 272
INFORMATION ABOUT CORPORATE GOVERNANCE
Board of Directors, Chairman and CEO 85-86
Audit Committee (Composition, role, meetings, attendance, etc) Internal Control and Risk
144-150
Management
Ethics and Compliance 95
Remuneration and other Committees of Board 97,32
Human Capital 191
Communication to Stakeholders
- Information available on website 197-215
- Other information
Management Review and Responsibility 100-127
Disclosure by Board of Directors of Audit Committee on evaluation of quarterly reports 151
Any other investor-friendly information 215
RISK MANAGEMENT AND CONTROL ENVIRONMENT
Description of the Risk Management Framework 158-165
Risk Mitigation Methodology 158-165
Disclosure of Risk Reporting 125
STAKEHOLDERS INFORMATION
Distribution of shareholders (Number of shares as well as category wise, e.g Promoter group,
211
FII etc)
Shares held by Directors/Executives and relatives of Directors/Executives 211
Redress of investors complaints 215
GRAPHICAL/ PICTORIAL DATA
Earnings per Share 207
Net Assets 209
Stock Performance 207
Shareholders’ Funds 209
Return on Shareholders Fund 209
HORIZONTAL/VERTICAL ANALYSIS OF DIFFERENT PERFORMANCE/OPERATION INDICATORS
Operating Performance (Income Statement)
- Total Revenue
- Operating profit
- Profit before Tax
- Profit after Tax
- EPS 198-200
Statement of Financial Position (Balance Sheet)
- Shareholders Fund
- Property Plant and Equipment
- Net Current Assets
- Long Term Liabilities/Current Liabilities
PROFITABILITY/DIVIDENDS/ PERFORMANCE AND LIQUIDITY RATIOS
Gross Profit Ratio
Earning before Interest, Depreciation and Tax
Price Earning Ratio
198-200
Current Ratios
Return on Capital Employed
Debt Equity Ratio
Items Ref. Page No.

VALUE ADDED STATEMENT AND ITS DISTRIBUTION
Taxes Paid to the Government
Dividend Paid to Shareholders
Bonus/Remuneration Paid to Employees
194-196
Retained by the entity
Market share information of the Company’s product/services
Economic value added
ADDITIONAL DISCLOSURES
Sustainability Development Reporting 180
Human Resource Accounting 191-192
Geographical Presence 233
SPECIFIC AREA FOR BANKING SECTOR
Disclosure of ratings given by various rating agencies for instruments issued by /of Bank. 143
Details of loans and advances portfolio: classification wise as per the direction of Bangladesh
Bank
Disclosure for Non Performing Assets
- Movements in NPA
- Sector-wise breakup of NPA 156-157
- Movement of Provisions made against NPA
- Details of accounts restructured as per regulatory guidelines
Maturity Pattern of Key Assets and Liabilities
Classification and valuation of investments as per regulatory guidelines/Accounting 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
25,198-200
- Capital Adequacy Ratio
- Operating profit as a percentage of working funds / Return on Asset
- 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 301-302
The break-up of ‘Provisions and contingencies’ included in the Profit and Loss Account 312-113
Disclosure under regulatory guidelines (Market Discipline- Pillar 3 Disclosures under Basel-III) 319-320
Details of Non-Statutory investment portfolio 295
Disclosure in respect of assets given on operating & finance lease 315
Disclosures for derivative investments 295-300

Bank's Network : List of Branches or Centers 232
Important Financial Indicators with

Quantitative and Qualitative Factors
Items Page No.
A Quantitative Factors
Profitability
1 ROA (before Tax)
2 ROE (After Tax)
3 NIM 27,198-202
4 Return of Average weighted Asset
5 Efficiency ratio
Capital Adequacy
1 Risk Weighted Asset
2 Internal Capital Generation Ratio 319-321
3 Leverage Ratio
Asset Quality
1 Gross NPL Ratio
2 Net NPL Ratio
156-157
3 Gross NPL Coverage
4 SMA to Credit Portfolio
Liquidity and Funding
1 Liquid Asset Ratio
52,174-175
2 Loan to Deposit Ratio
B Qualitative Factors
Capital Adequacy
1 Capital Buffer
154-155
2 Trend of Internal Capital Growth
Asset Quality
1 Trend of Non Performing Assets
2 Credit Growth/Outreach
156,27,301-302
3 Exposure Concentration
4 Priority Sector Financing
Board and Management
1 Organization Development
25-26,29,34-
2 Director's Profile
47,80-98
3 Corporate Governance
Earnings
1 Bank Vs Industry Earnings
2 Earnings Stability 198-210
3 Movement of Profitability Indicators
Liquidity
1 Liquidity and Deposit Base 73-75
Quality of Accounts & Disclosure
1 Quality of Accounts/ Compliance
260-261,272-363
2 Disclosure
Risk Management & Compliance
1 Risk Management Guidelines
2 Related Party Transaction 159-165,92,177
3 Capital Market Exposure
Franchise Value
1 Foreign Affiliation
2 Credit Rating of the Bank
3 Contribution of National Exchequer 244-257,143,226,
182-185
4 Contribution of CSR Activities
Market Presence
1 Market Share
196,232-237,
2 Branch Network
218-219
3 Product Diversification
Events
2016

donated BDT10.00 million
to the Prime Minister’s Relief
and Welfare Fund for blankets
for country’s cold-hit poor
people. Honorable Prime
Minister Sheikh Hasina is seen
receiving the Cheque from
Alamgir Kabir, FCA, Chairman
of the Bank. Azim Uddin
Ahmed, Director of Southeast
Bank was also present on the
occasion.
Azim Uddin Ahmed,

Director, Southeast Bank
handed over a Cheque for
BDT 7.50 million to Prime
Minister Sheikh Hasina on
August 09, 2016 in Dhaka
as donation for Prime
Minister’s Relief Fund.
Azim Uddin Ahmed,

handed over a Cheque
for Tk. 15.00 million to
the Honorable Prime
Minister Sheikh Hasina at
Gonobhaban on June 27,
2016 in Dhaka as donation
for Prime Minister’s Relief
Fund.
Southeast Bank Foundation

organized a reception on 27
February 2016 for the Higher
Secondary and Graduation level
meritorious students coming
from different poor families for
disbursement of scholarships.
Dr. Atiur Rahman, former
Governor, Bangladesh Bank,
was present on the occasion as
the Chief Guest. Alamgir Kabir,
FCA, Chairman, Southeast Bank
Limited was present as the
special guest.

signed a Memorandum
of Understanding with
Hajj Agencies Association
of Bangladesh (HAAB)
on February 01, 2016 at
Southeast Bank, Head
Office. Shahid Hossain,
Former Managing Director
of Southeast Bank Limited
and the President of HAAB
Mohammad Ibrahim Bahar,
signed the agreement on
behalf of their respective
organizations.
Southeast Bank Limited signed

an Agreement with Bangladesh
Bank for Participation in
Green Transformation Fund.
Manoj Kumar Biswas, General
Manager, Sustainable Finance
Department, Bangladesh
Bank and Shahid Hossain,
Former Managing Director,
Southeast Bank Limited signed
the agreement on behalf of
their respective organizations.
Shitangshu Kumar (S.K.) Sur
Chowdhury, Deputy Governor,
Bangladesh Bank was the Chief
Guest of the signing ceremony.
Shahid Hossain, Former

Managing Director of
Southeast Bank unveiled
the newly designed
product “Ananya” along
with its first Account
Holder Hasnat Ara Haque.
Mohammed Gofran,
Additional Managing
Director of Southeast Bank
unveiled the Campaign
“NIBIR” at the Bank’s
Agrabad Branch with
valued clients of the Bank.

Southeast Bank unveiled
the newly designed
product “Bichokkhon”
along with its first Account
Holder Muhammad
Mahmood.
Southeast Bank launched a

new product in the name
and style “Southeast- Cash
Express Remit Card” in
collaboration with World
Wide Cash Express, UAE
for the expatriates’ family
members. Shahid Hossain,
of Southeast Bank formally
launched “Southeast-Cash
Express Remit Card” service.

launches EMI PAY (Equal
Monthly Installment Plan)
service. The formal launching
ceremony was held on April
26, 2016 at the Bank’s Head
Office, Dhaka. Shahid Hossain,
Former Managing Director of
the Bank formally launched
this service for Southeast
Bank Card Members.
Southeast Bank signed an

agreement with bKash
to provide payment and
collection service to bKash
distributors through the bank’s
branches network as well
as transmission of real time
collection information to bKash
through online link. Shahid
Hossain, Former Managing
Director of Southeast Bank and
Kamal Quadir, Chief Executive
Officer of bKash Limited signed
the agreement on behalf of
their respective organizations
on 22 August, 2016.
Southeast Bank facilitated the

modernization and automation
works of the Department of
Information Science and Library
Management as part of Bank’s
Corporate Social Responsibility.
The inauguration of the
“modernization and automation
works” of the Department of
Management, University of
Dhaka was held on June 06,
2016. Prof. Dr. A A M S Arefin
Siddique, Vice-Chancellor of
University of Dhaka was present
as Chief Guest. Shahid Hossain,
Former Managing Director of
Southeast Bank was also present
as the Special Guest. Muhammad
Shahjahan, Additional Managing
Director of the Bank was also
present in the function.
Southeast Bank donated Tk.5.00

million on June 23, 2016 for the
installation of a Capsule Lift for
Teachers at the MBA Bhaban of
the University of Dhaka as a part of
its Corporate Social Responsibility
in the area of education. In the
cheque handing over ceremony,
Prof. Dr. A A M S Arefin Siddique,
Vice-Chancellor, University of
Dhaka, Shahid Hossain, Former
Managing Director of Southeast
Bank and Prof. Shibli Rubayat-Ul-
Islam, Dean, Faculty of Business
Studies, University of Dhaka and
Muhammad Shahjahan, Additional
Managing Director of Southeast
Bank were present.
Southeast Bank gave financial

support for renovation

modernization of Computer
Laboratory of Department of
Management, University of Dhaka
as part of Bank’s Corporate Social
Responsibility. The inauguration
of the Computer Laboratory was
held on November 13, 2016. Prof.
Dr. A A M S Arefin Siddique, Vice-
Chancellor of University of Dhaka
graced the occasion as Chief Guest.
Shahid Hossain, Former Managing
Director of Southeast Bank Limited
was also present in the ceremony
as the Special Guest. Professor Dr.
Muhammad Mezbah-ul-Islam,
Chairman of the Department of
Management, University of Dhaka
chaired the function.
Annisul Huq, Mayor, Dhaka

North City Corporation,
received the cheque from
Managing Director,
Southeast Bank. As a part
of CSR activities, Southeast
Bank donated Tk.2.50 million
on January 21, 2016 at the
office of the Dhaka City
Corporation (North) for
installation of CCTV Cameras
primarily at the Diplomatic
Zone of Dhaka city to ensure
safety and security to the
communities.
Southeast Bank opened a

Municipal Tax Collection Booth
at Feni Pourashava on October
10, 2016 at College Road, Feni.
Nizam Uddin Hajari, MP and
Member, Parliamentary Standing
Committee on the Ministry
of Health and Family Welfare
formally inaugurated Booth as
Chief Guest. Haji Alauddin, Mayor,
Feni Pourashava; Abdur Rahman,
Upazila Chairman, Feni Sadar,
Feni Pourashava; Shahid Hossain,
Former Managing Director,
Southeast Bank were also present
as Special Guest in the program.
Southeast Bank Limited, as

a part of its Corporate Social
Responsibility, donated One
Double Cabin Pick-up Van to
“Valuka Model Thana” Valuka,
Mymensingh on November
02, 2016. S.M. Mainuddin
Chowdhury, Additional
Managing Director of the
Southeast Bank handed over
the key of One Double Cabin
Pick-up Van to A K M Shahidul
Hoque, bpm, ppm, Inspector
General of Police, Bangladesh
Police in presence of Fahmi
Gulandaz Babel, Member of
Parliament, Mymensingh-10.
Southeast Bank
inaugurated its Malibagh
Branch at Siddheswari
Circular Road, Dhaka
on May 29, 2015.
Mohammed Gofran,
Additional Managing
Director of the Bank
formally inaugurated the
Branch as the Chief Guest.
Southeast Bank and Bangladesh

Telecommunications Company
Limited (BTCL) signed an
agreement. Under this
agreement, SEBL will facilitate
BTCL customers’ bill collection
through its branch network and
delivery channels, and transmit
real time collection information
to BTCL through online link.
S. M. Mainuddin Chowdhury,
Deputy Managing Director of
Southeast Bank and Golam
Fakhruddin Ahmed Chowdhury,
Managing Director, BTCL signed
the agreement on behalf of their
respective organizations.
Southeast Bank signed

an MoU with Bakhrabad
Gas Distribution Company
Limited for collection of
Gas bills. The signed MoU
was exchanged between
Southeast Bank and M. A.
Hannan Azad, Secretary of
Bakhrabad Gas Distribution
Company Limited.
Southeast Bank signed

a Memorandum
of Understanding
with Infrastructure
Development Company
Limited on February
07, 2016 for a strategic
partnership for Renewable
Energy and Infrastructure
projects. Shahid Hossain,
of Southeast Bank Limited
signed the agreement on
behalf of the Bank.
An agreement was signed between

Southeast Bank and Le Meridien
Dhaka. Under this agreement,
Southeast Bank Credit Cardholders
can now enjoy luxurious lodging,
dining, fitness centre and laundry
services at Le Meridien Dhaka at
attractive discounts up to 15% on
the regular price. S. M. Mainuddin
Chowdhury, Additional Managing
Director of the Bank and Ashwini
Nayar, General Manager of Le
Meridien Dhaka exchanged copies
of the agreement. Senior officials
from the both sides were present at
the signing ceremony.
An agreement was signed

between Southeast Bank
and US-Bangla Airlines on
October 20, 2016. Under
this agreement, Southeast
Bank Credit Cardholders can
avail EMI (Equal Monthly
Installment) facility up to
6 months @ 0% interest.
Managing Director and
Md. Shafiqul Islam, Head of
Sales and Marketing of US-
Bangla Airlines signed the
Agreement on behalf of their

opened its 125th
Branch at Chuadanga
on December 08, 2016.
Muhammad Shahjahan,
Additional Managing
Director and Company
Secretary, Southeast Bank,
formally inaugurated the
Chuadanga Branch as the
Chief Guest.
Southeast Bank and Election

Commission (EC) signed
an agreement on May 15,
2016. Under this agreement,
Southeast Bank will collect
fees against NID related
services for the commission.
S. M. Mainuddin Chowdhury,
Additional Managing
Director of Southeast Bank
and Md. Anowar Hossain,
Director (Administration and
Finance) of EC signed the
agreement on behalf of their

opened its 127th Branch at
R.K.Mission Road, Dhaka on
December 26, 2016. Shahid
Hossain, Former Managing
formally inaugurated the R,
K, Mission Road Branch as
the Chief Guest.
Notes
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 22nd Annual General Meeting of the company to be held on May 22, 2017 and
at any adjournment thereof.
As witness my/our hand this …………………day of ……………….. 2017.
……………………………… ……………………….
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 must agree with the recorded signature.

ii. A Member entitled to attend and vote at the 22nd 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
set for the Meeting, i.e. 11:00 a.m. of May 20, 2017.
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 22nd Annual General Meeting being held today, the Monday, May 22, 2017
at 11:00 a.m. at Officers’ Club Dhaka, 26 Baily Road, 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
REQUEST : Please bring your copy of Annual Report to the Meeting.

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.
PS: As per Bangladesh Securities and Exchange Commission’s Circular No.SEC/CMRRCD/2009-193/154 dated October 24,
2013, “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 22nd Annual General Meeting of the Bank.
Registered Office: Eunoos Trade Centre
52-53, Dilkusha C/A (Level 2,3,4,6 & 16), Dhaka-1000, Bangladesh
Phone:+88 02 9571115, 9576415, 9555466 & 9578324
SWIFT: SEBDBDDHXXX, E-mail: info@southeastbank.com.bd
Website: www.southeastbank.com.bd

Southeast Bank Annual Report 2016 PDF

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Southeast Bank Annual Report 2016 PDF

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COMMITTED TO

PROFILE OF BOARD OF DIRECTORS AND REVIEW OF THE GROUP CHAIRMAN

SUSTAINABILITY APPRAISAL AND INTEGRATED REPORTING

STANDARD DISCLOSURES CHECKLIST 419

Annual Report of Southeast Bank Limited for the Year -2016

Thank you for supporting us in the preceding years.

Notice of the 22nd Annual

3. To elect / re-elect Directors.

5. Miscellaneous, if any, with the permission of the chair.

Dated: May 07, 2017 Muhammad Shahjahan

Priorities followed in 2016

iii) Prudent Liability Management

iv) Excellence in Delivering Customer Service

v) Effective Risk Management

vi) Effective IT Framework and System

Evaluating employees based on Key Performance Efficiency and expense management

Code of Conduct and Ethical

A. WE ADHERE TO THE FOLLOWING PRINCIPLES IN B. WE BELIEVE IN THE FOLLOWING PRINCIPLES IN

1. Follow strict ethical banking practices. 1. Adequate disclosure of corporate information

2. We discourage financing projects that are not

3. We provide material support for protection of

4. We give aid to the poor, helpless and natural calamity-

5. We support charitable ventures.

6. We give sponsorships to sports, culture, education,

Name of the Company : Southeast Bank Limited

Corporate Philosophy and

Our philosophy is to reduce lines and layers of

Business Model Canvas of

Key Partners Key Activities Value Proposition

Customers Deposit Complete Solution of

Highly Professional and

Customer Segments Delivery Channels Customer Care

Corporate Clients Branches KYC – Know Your Customer

Listing with Dhaka Became a member

Subscription Opened Launching of

1999 2003 2006

2010 Introduction of Chip-based

Awards and Recognitions

Awards and Recognitions

Awards and Recognitions

Risk Management Executive Board Audit

Managing Director Board Audit Cell

Additional Managing Director Additional Managing Additional Managing

Corporate Banking Information Board Internal Control

Southeast Bank Limited

Main Operations Subsidiaries CSR Wing

Southeast Bank Southeast Southeast Southeast

Ltd. (UK) Ltd. (Australia) Pty Ltd. Africa) Pty Ltd.

Banking, Debit Cards, Time/ Term Loan in March 18,2013

Forward Looking Ideology

A forward-looking statement is a statement that contains predictions,

This Annual Report-2016 of Southeast Bank Limited also contains forward-

Managing Director (CC)

From Left Standing

Zakir Ahmed Khan Advisor

Alamgir Kabir, FCA Chairman

Risk Management Committee

Shariah Supervisory Committee

Mr. Kashem is the former President of the Federation of Bangladesh

M. A. Kashem Mr. Kashem is an eminent industrialist, renowned patron of education,

As a philanthropist, Mr. Kashem set up a number of Schools, Madrashas,

Mr. Azim Uddin Ahmed is a well-known business personality of the country.

Mr. Azim is associated with a number of trade bodies and associations