Bangladesh Bank announces top 10 sustainable Bangladeshi Bank list.

Bangladesh Bank recently published a sustainable rating of Top Ten Bank of our countries and financial institutions for the first time. The Sustainable Finance Department (SFD) of Bangladesh Bank listed the top 10 sustainable Bangladeshi Bank and five non-bank financial institutions (NBFIs) of our country based on their performance in the year 2020. In this list there are 03 (Three) Shariah Based Banks and the other 07(seven) are conventional banks.

Read Also: Top Mobile Banking Services in Bangladesh.

Top 10 sustainable Bangladeshi Bank and Financial Institution list.

List of Top 10 sustainable banks 

01. Al-Arafah Islami Bank Limited
02. Bank Asia Limited
03. BRAC Bank Limited.
04. Dutch-Bangla Bank Limited
05. EXIM Bank Limited
06. Islami Bank Bangladesh Limited
07. Mutual Trust Bank Limited
08. Prime Bank Limited
09. The City Bank Limited and
10. United Commercial Bank Limited

List of Top Five sustainable non-bank financial institutions

01. Hajj Finance Company Limited
02. IDLC Finance Limited
03. IPDC Finance Limited
04. Saudi Bangladesh Industrial and Agricultural Investment Company Limited
05. United Finance Limited

This rating is decided with the help of 08 departments of Bangladesh Bank according to the data provided by the bank at the end of the year -2020.

Bangladesh Bank identifies the Methodology for Sustainability Rating of Banks and Financial Institutions based on the following components/parameters.

Bangladesh Bank mainly divided the Methodology for Sustainability Rating of Banks and Financial Institutions component into two components. These are;01. Core Banking Sustainability and
02. Banking Services Coverage component

Under Core Banking Sustainability sub- component are;

Sl. No.FactorsComponent Type
1Net NPL RateQuantitative
2Core Capital (Tier-1) against Risk Weighted AssetsQuantitative
3Provision Maintenance RatioQuantitative
4Net CMSME Loans and Advances Outstanding to Net Loans and Advances Outstanding RatioQuantitative
5Exceeding Large Loan Portfolio Ceiling against Bank’s Total Loans & AdvancesQualitative

Under Banking Services Coverage sub-components are;

Sl. No.FactorsComponent Type
1Number of BranchesQuantitative
2Number of Deposit A/CQuantitative
3Number of Loan A/CQuantitative
4Number of Agent OutletQuantitative

Along with this component Bangladesh Bank took into mind the amount of grants and financing on Education, Health and climate Fund of CSR activities. In addition to this, in the case of Green re-financing, performance of the banks is taken into consideration on yearly refinance rate, sector and sector wise refinance.

In our country there are 61 scheduled banks and 34 Non-Bank financial institutions operated under the full control and supervision of Bangladesh Bank. According to the Bangladesh Bank report on Green Financing by Banks and financial institutions, at the end of December 2020 Agrani Bank Limited financed Tk. 604 crore in Green financing projects which is the highest among the banks in our country.

At the second position Islami Bank Bangladesh Limited who financed Tk. 595 Crore, Then EXIM Bank Limited Tk. 502 Crore, BRAC Bank Limited Tk. 421 Crore, Al-Arafah Islami Bank Limited Tk. 142 Crore, Bank Asia Limited Tk. 122 Crore, IFIC Bank Limited Tk.107 Crore, NRB Bank Limited Tk. 65 Crore, Mercantile Bank Limited Tk. 18 Crore, BASIC Bank Limited Tk. 13 Crore.

These top 10 sustainable Bangladeshi Bank banks are financed more than 10% on Green financing projects of their total disbursed funded term loan. And among the non-bank financial institutions Bangladesh Infrastructure Finance Fund Limited (BIFFL) financed more than 05% on the Green financing project of their total disbursed funded term loan.

Was This Article Helpful?

Leave a Reply

Your email address will not be published. Required fields are marked *