Rupali Bank

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Credit Rating Report (Surveillance) Rupali Bank Limited
Ratings Long Term: Short Term: BBB3 ST - 3

Govt. Support : AAA

Date of Ratings 19 December 2010

Long Term BB2

Short Term ST- 3
National Support (Govt.) AAA

Date of Rating : 01 December 2011 Validity : 30 June 2012

Rating Based on: Audited financial statement up to 31 December 2010, and other relevant quantitative as well as qualitative information up to the date of rating declaration. Methodology: CRAB’s Bank Rating Methodology (www.crab.com.bd) Analysts: Tahmina Islam tahmina.islam@crab.com.bd Fareba Naz Shaule fareba.naz@crab.com.bd F in a n c ia l Hi g h lig h ts Y e a r en d e d De c em b e r 3 1 2 01 0 ROAA (after tax) % Return on RWA (after tax) % Cost to Income Ratio % RWCAR % Gross NPL Ratio % SMA to Total Loans % Loans to Deposit Ratio % Total Loans (Mil. BDT) Total Deposits (Mil. BDT) 70,000 60,000

20 09 2.0 2.0 47.8 (8.7) 20.9 0.7 70.9 52,344.2 73,803.4
50 40 30 20 10 0

Commercial Bank Ltd., Australasia Bank Ltd. and Standard Bank Ltd. operated in the former Pakistan through the Bangladesh Banks (Nationalization) Order

0.6 0.5 48.9 9.5 12.0 0.2 72.5 66,049.0 91,123.8

Government of Bangladesh held 92.77% shares and general public held 7.13% share. The Bank had 492 branches on 1972. As on 31st December 2010 December 31, 2010. Rupali Bank Limited formed a subsidiary “Rupali Investment Limited” in 2010 which would start its Merchant Banking Activities soon.

M i l. BDT

50,000 40,000 30,000 20,000 10,000 -

 RATIONALE
%

Credit Rating Agency of Bangladesh Limited (CRAB) has upgraded the long term rating of Rupali Bank retained short term rating at ST- 3. ”. CRAB performed the rating surveillance based on audited financial statements up to 31st December 2010 and other relevant information. Commercial Banks rated 'BBB' have adequate capacity to meet their financial commitments. or However, changing Limited at “BBB3 “(pronounced triple B three) and

2006

2007

2008

2009

2010

Year Credit Portfolio (Mil. BDT)


Gross NPL Ratio (%)

PROFILE
Bank”) was incorporated as public limited

Rupali Bank Limited (hereinafter referred as “RBL” or “the company on 14 December 1986. Its shares are listed in the Dhaka Stock Exchange and Chittagong Stock Exchange. After independence in March 1972 Rupali Bank Limited was constituted with the merger of 3 (three) erstwhile commercial banks i.e. Muslim

adverse

economic

conditions

circumstances are more likely to lead to a weakened capacity of the Commercial Banks to meet their financial commitments. “BBB” is subject to moderate credit risk. Commercial Banks rated ST-3 category are considered as average capacity for timely

Page 1 of 17 CRAB I CRAB Ratings on Bank Credit Digest I March 29, 2012

CRAB Rating Report

Bank

Previous Ratings

repayment of obligations, although such capacity may be impaired by adverse changes in business, economic, or financial conditions. Commercial Banks rated in this category are characterized with satisfactory level of liquidity, internal fund generation, and access to alternative sources of funds. Government support rating considers the government ownership of the bank. RBL is one of the systematically important state owned banks in the country. The ratings reflect the Bank’s improved asset quality, ability to accumulate low cost fund and adequate provision maintained. Ratings also consider the Bank’s wide branch network having 492 branches across the country. However, ratings are constrained by high cost to income ratio, quality of the capital and weak MIS. Revenue structure of RBL in 2010 changed significantly and was dominated by net interest income (57.64%) followed by investment income (23.07%) whereas in 2009 investment income was 36.80%. In 2010, investments income increased by 13.1% driven by income from treasury bills and bonds. In 2010 although Bank’s net interest income increased by 20.1%, net interest...
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