Apr 2, 2001 ... RATING REPORT. OF. JAMUNA BANK LIMITED (JBL). RATING ASSIGNED:
Long Term: BBB+. (Triple B Plus). Short Term: ST- 3. (March 27 ...
RATING REPORT OF JAMUNA BANK LIMITED (JBL)
RATIONALE RATING ASSIGNED: Long Term: BBB+ (Triple B Plus) Short Term: ST- 3 (March 27, 2005) ANALYSTS: Mr. Ayub Moer RAM, Malaysia Ms. Sabeen Salim
JCR-VIS, Pakistan M. Maniruzzaman Tel: (8802) 9349905 E-mail:
[email protected]
CRISL, Bangladesh
JAMUNA BANK LIMITED PRINCIPAL ACTIVITY: Commercial Banking INCORPORATED ON: April 02, 2001 EQUITY: Tk. 549.18 million. LOANS & ADVANCES: Tk. 5,421.51 million. DEPOSITS: Tk. 8,954.29 million. CHAIRMAN: Mr. Golam Dastagir Gazi MANAGING DIRECTOR: Mr. Nazrul Islam
Page 1 of 16
CRISL assigns ‘BBB+’ (Triple B Plus) rating to Jamuna Bank Limited in the long term and ST- 3 rating in the short term. The above rating is based on the banks' good fundamentals such as superior asset quality, adequate capital adequacy, moderate profitability and comfortable liquidity. However, the above is constrained to some extent by limited market share, weak fund management and high concentration risk. Financial Institutions rated in this category fall under the CRISL category of investment grade and are adjudged to offer moderate degree of safety for timely repayment of financial obligations. This level of rating indicates that a bank has got weaknesses in some areas of operation. However, these entities are considered to have the capability to overcome the above limitations with persistent efforts. Risk factors are more variable in periods of economic stress than those rated in the higher categories. JBL is a third-generation private bank in the country and is performing average as compared to its peer. It is managed by a team of professionals having expertise in traditional banking system. The management has been taking utmost care of capital adequacy maintenance and liquidity management as per the requirement of Bangladesh Bank.
BANK PROFILE Jamuna Bank Limited hereinafter called JBL was incorporated as a public limited company under Companies Act, 1994. The JBL commenced functioning on 3rd June 2001 under the ambit of the Bank Companies Act, 1991 with the vision “To become a leading banking institution and to play a pivotal role in the development of the country”. Over the last four years, the bank has been successfully operating and providing services to an incremental number of clientele. The JBL has been increasing its service coverage through introducing branches at different strategically located areas of the country. The bank is going for public offerings of shares (IPO) in order to comply with the rules of Securities and Exchange Commission, Bangladesh Bank and Bank Companies Act, 1991 and to increase its paid up capital to Tk. 1,014.00 million from TK. 507.00 million subject to the permission of Securities and Exchange Commission. The bank has been sponsored by a group of local businessmen representing various business groups having exposure in RMG, Real Estate, Leathers sectors, etc. The bank is being managed under the orbit of the Banking Companies Act 1991 and Companies Act 1994 with the experienced bankers. It provides a wide range of commercial banking services including Shariah based services under Islami Principles. The Bank has 19 branches (including 2 Islami branches), with staff strength of 369 as on December 31, 2004.
