Dutch-Bangla Bank, a prominent private sector lender in Bangladesh, has unveiled plans to venture into merchant banking and brokerage businesses, marking a significant expansion beyond its conventional banking operations. The bank’s board decision, made on August 14th, entails the establishment of two fully owned subsidiaries pending regulatory approval. One subsidiary, Dutch-Bangla Bank Investment Limited, with a proposed capital of Tk25 crore, will focus on merchant banking services encompassing issue management, underwriting, and portfolio management. Simultaneously, the bank is set to form another subsidiary for brokerage services, involving stock dealing and stock brokering, with an allocated capital of Tk10 crore.
Amidst these developments, Dutch-Bangla Bank is also poised to become a sponsor shareholder in the anticipated Digi10 Bank PLC. By investing Tk12.5 crore, the bank will join a consortium of 10 banks in pursuing a digital banking license. The move aligns with a broader trend toward digital transformation in the financial sector. The bank’s financial performance for the first half of 2023 reflects a growth in total operating income, reaching Tk1637 crore, a 7.96% rise from the same period in 2022. However, its net profit witnessed a marginal decline of 3.38% to Tk240.34 crore. The bank disbursed Tk38,422.91 crore in loans until June 2023, indicating a 5% increase compared to December 2022. Nevertheless, classified loans surged to Tk2,124.61 crore from Tk1,559.95 crore by mid-2023, contributing to a disbursed and classified loan ratio of 5.53%, up from 4.29% at the close of 2022. The bank, which went public in 2008, reported a profit of Tk566 crore in 2022, distributing a 17.5% cash and 7.5% stock dividend to its shareholders.
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