Capital Management of the Bank is to maintain an adequate capital base to support the projected business and regulatory requirement. NBL always maintains a prudent balance between Tier-I and Tier-2 capital. Total capital as on December 31, 2010 was Tk. 19,190.79 million and capital adequacy ratio was 12.29 %. Maintenance of adequate capital enhanced the Bank's single borrower's exposure limit up to a high level to cope with the corporate customers demand.
The deposit base of the bank registered a growth of 33.37 percent in the reporting year over the last year and stood at Tk.102,471.83 million. Expansion of branch network, competitive interest rate and deposit products contributed to the growth. The customers of the bank were individuals, corporations, financial institutions, government and autonomous bodies etc.
In harmony with earlier years' trend, National Bank Limited was intensely active in international trade during the year 2010. The Bank put forth every possible attempt to expand its external business by establishing LC, undertaking export bill negotiations, realization of export proceeds, foreign remittance etc.
The Bank opened a total 24,775 LCs amounting to USD 1,390.03 million for facilitating import trade in 2010. The main commodities were capital machinery, raw cotton, scrap vessels, rice, wheat, edible oil, petroleum products, yarn, fabrics, garment accessories and other consumer items.
The Bank has been nurturing the export business enthusiastically since its inception. In 2010 it handled 22,135 export documents valuing USD 691.79 million with a growth of 24 percent over the last year's volume of USD 559.78 million. Export finances were extended mainly to readymade garments, knitwear, frozen food and fish, tanned leather, handicraft, tea,jute goods etc.
Efficient Board and management, strong capital base, wide branch network, support from other stakeholders helped NBL in revenue earnings and profit maximization. During the period NBL earned an operating profit of Tk. 8,940.60 million in 2010 which was Tk 3,397.50 million in 2009 registering a growth of 163.15 percent. Net Profit after tax grew by 231.34 percent to Tk. 6,860.34 million in 2010 after making provision for loan loss and taxation.
National Bank Limited formulated befitting credit risk management criteria and strategies for creation of balanced lending mix in it's portfolio both for short and long term with the bottom line objective to ensure risk adjusted rate of return in it's credit transactions. Loan and advances in the year 2010 registered an increase by 41.26% to BDT 92,003.56 million from BDT 65,129.29 million in 2009. During the year 2010, the credit expansion mainly was in bilateral project finance, syndicate finance, export, import and trade finance as well as SME and Agri finance. The bank as a matter of policy prioritizes to make lending in the thrust sectors of the economy so as to make distinctive value addition in overall economic uplift of the country.
National Bank Limited exerted highest emphasis on overseas operation and handling a sizeable quantum of homebound foreign
remittance since beginning. By this time, it has earned a reputation as the leader in providing such remittances not only among
the customers but also among the regulators. In 1985 the Bank established exchange house with equity ownership and management in
Oman. Subsequently many arrangements have been made with different exchange houses and also by establishing subsidiaries abroad for
expanding the Bank's overseas network in places with high concentration of Bangladeshi expatriates.
National Bank Limited in 1993 introduced Western Union Money Transfer, a global leader in money transfer services in Bangladesh remained lone agent till 2002. It was a breakthrough in getting prompt payment of foreign remittances by the beneficiaries which encouraged remitters to use legal channel. As a contributor of national economy, NBL is relentlessly working to ease the flow of inward foreign remittance. The bank introduced different products and technology including Online Banking, EFT and other automated devices for uninterrupted speedy payments. Furthermore, NBL entered into a deal with ASA, a leading NGO having 3,000 outlets throughout the country and also with Social Islamic Bank Limited (SIBL) to provide inward remittance products on behalf of NBL. In 2010, foreign remittance brought through NBL was USD 708.67 million with an increase of USD 62.70 million over the previous year showing a growth of 9.70%.