When Southeast Bank Limited (SBL) goes public some time this month, it can bank on its excellent management efficiency and high financial results to get good market response.

Starting in May. 1995, Southeast Bank Ltd has already

earned some respect for its progressive management and effi- ■ cient banking services.

The bank has been maintaining a tight supervision over its lending programmes. As against an average 32 per cent non-performing loans of the Krivate commercial banks. SBL as a classified loan of only 3.5 percent.

This is quite good for a

bank. You need to improve the external environment to really reduce the non-performing loans, says Syed Anisul Huq, the bank's Managing Director.

In 1998. the operating profit of the bank was Tk 170.66 million. registering an increase of 62.50 per cent. After meeting all taxes, obligations and appropriations, the divisible surplus was Tk 56.71 million. The bank declared a 20 per cent dividend as bonus share from the divisible profit for '98. In 1997. SBL had also declared 25 per cent dividend.

The bank’s deposits increased by 47 per cent in 1998, its import trade-business rose by 46 per cent, export trade business by 99 per cent and loans and advances by 31 per cent.

“The key to our having a good management in place is our recruitment policy. We go Growth of Liabilities and Risk Assets

through a strict screening process for recruitment, provide the probationary officers with in-house training and then send them to BIBM for better understanding of the total banking system. We give them good salaries and ensure favourable working environment. In return, we secure a good management system." Huq said.

"Even within the- limited scope of banking, we have pioneered in introducing syndication loans in Bangladesh. We need massive investments to ready ourselves for facing the challenges of year 2005. We need to set up backward linkage industries to get the readymade garment sector on a firm footing. That’s why we have pioneered syndication loans in union with foreign banks like ANZ Grindlays Bank and AMEX and other leasing com-

Taka in million

panies." '

This is also facilitating the transfer of technology from foreign banks to us." the SBL MD said. The foreign banks have better ways of assessing project risks and we are also acquiring the skills by going into syndication with them."

"By issuing public shares, we expect to expand our capital base. This will help us strengthen our capital adequacy. Our board will have two new directors from among the public share subscribers."

"With a view to expand our business, we hope to Introduce Islamic banking in the next millennium, as there is a segment of borrowers and depositors who prefer this mode of banking. The Islamic banking wing of our bank will have its own separate balance sheet. By June next year, we will also launch ATM and on-line banking services."

The bank's audited half-yearly results till June 30, 1999 also showed upward trends in its performances. Its deposits increased by over 42 per cent, loans and advances By over 40 per cent while the pre-tax profit surged by 12.47 per cent during the period.

The bank has 12 branches with 447 employees including 77 sub-ordinate staff.