Letter of Transmittal

April 30, 2024

All the Shareholders of Midland Bank PLC.

Bangladesh Bank
Bangladesh Securities and Exchange Commission (BSEC)
Registrar of Joint Stock Companies and Firms (RJSC)
Dhaka Stock Exchange PLC. (DSE)
Chittagong Stock Exchange PLC. (CSE)

Dear Sir,

Annual Report of Midland Bank PLC. for the year ended on December 31, 2023.

We are pleased to enclose a copy of the Bank’s Annual Report 2023, together with the Audited Financial Statements
for the year ended December 31, 2023 for your kind information and record.

Thank you.

Sincerely,

Khalid Mohammad Sharif FCS

Company Secretary
 Contents
Introduction 04 Midland Bank Profile: Successes and Promises
05 Corporate Information
06 Value Creation for Stakeholders during 2023
07 Performance Dashboard
09 Vision & Mission
10 Corporate Values
11 Strategic Goals
12 Customer Charter and Ethical Preferences
13 Milestones
14 MDB Financial Performance and Ratios: 5 Years Overview
16 Sponsors & Shareholders

The Board of Directors 17

30
The Board of Directors
Committees of the Board of Directors
& Committees 31 The Members of the Shariah Supervisory Council
32 The Profiles of Shariah Council Members
33 Management Committees

Reports 41 From the Desk of the Chairman

44 Report of the Audit Committee of the Board of Directors
47 Managing Director & CEO's Review
50 Directors’ Report
66 Performance Overview by Different Divisions/Departments
86 Chief Financial Officer’s Report
88 Report on Economic Impact
90 Corporate Governance
95 Compliance Certificate on Corporate Governance
109 Message from the CRO
113 Disclosures on Risk Based Capital (Basel-lll)
 Contents
Photo Gallery & 136 MDB Photo Gallery
160 Sustainability Report
Social Resposibility 163 Green Banking
165 MDB CSR Activity
166 Financial Literacy

Financial 167
168
Financials Statements 2023 (Auditor’s Report to the Shareholders)
Statement of Directors on Adequacy of the System of Internal Control
Statements 169 Directors Responsibility in Relation to Financial Statements
170 Declaration of Managing Director & CEO and
Chief Financial Officer to the Board of Directors
171 Independent Auditor’s Report
178 Financial Statements
185 Notes to the Financial Statements

MDB Services 249 MDB Services Network

Network

Other 257 AGM Notice

259 Proxy Form
 Midland Bank Profile: Successes and Promises
Midland Bank PLC. (MDB) came to the financial frontier of Bangladesh in 2013 as a fourth generation Bank to serve people from all walks
of life. The Bank was issued certificate of incorporation and certificate of commencement of business on March 20, 2013 under the
Companies Act 1994 as a Public Limited Company by shares for conducting all types of banking activities. The Bank is led by a Board of
Directors who are experienced and expert in their respective field of business. A highly competent and expert team of bankers steer the
Bank’s everyday operations to the path of progress as envisioned by its Shareholders.

MDB started commercial operation on June 20, 2013 with a corporate slogan “bank for inclusive growth”. Bank’s business model has
been evolving over time in response to significant changes in the operating environment– notably tightening of regulatory oversight,
rapid development of new information and communication technologies and the more worth noticing, constantly changing customer
behaviour. We are well aware of our requirement to bring qualitative changes in our operational module as to make our position even
more competitive and customer centric and shall remain focused to come up to the maximum possible wavelength of our customer
satisfaction. MDB as a matter of policy perception believe in innovation and as part of it exploring of new avenues to ramify our financial
services across the different demographic and geographical segments.

MDB is presenting its 2023 financial results as a fast growing fourth generation Bank in Bangladesh with the pride of a solid capital base,
quality assets and strong profitability. The year 2023 has seen that deposit accounts increased by 51,364 from 239,952 in 2022 to 291,316
in 2023 and loan accounts increased by 644 from 4,757 in 2022 to 5,401 in 2023. Total Loans and Advances increased by 3.92%, or BDT
2,069.85 million from BDT 52,792.81 million in 2022 to BDT 54,862.66 million in 2023. However, overall loans portfolio remained relatively
balanced between Institutional Banking, MSME and Retail segments. Customer deposits grew by 4.40%, or BDT 2,539.71 million from
57,763.01 million in 2022 to BDT 60,302.72 million in 2023. While growing our deposits book, we have focused on low cost and no cost
(CASA) deposits acquisition and eventually by the end of 2023 our CASA ratio stood at 28%.

Operating profit before provision on loans and tax increased by 14.17% from BDT 1,526.73 million in 2022 to BDT 1,743.00 million in 2023,
after covering net loss of BDT 134.38 million from revaluation of Treasury Bills/Bonds during the year. But Net profit after tax registered
at BDT 1,133.11 million in 2023 against BDT 561.97 million in 2022, i.e., up by BDT 571.14 million, or 101.63% over 2022, due to deferred tax
income, considering provision for classified loans and advances.

Return on Equities (ROE) stood at 13.49% in 2023 from 7.47% in 2022, Return on Assets (ROA) stood at 1.39% in 2023 from 0.75% in 2022
and Earnings Per Share (EPS) stood at BDT 1.77 in 2023 against BDT 0.88 in 2022. At the year-end of 2023, shareholders’ equity stood at
BDT 9,150.66 million against BDT 7,646.54 million in 2022. Bank’s Capital to Risk Weighted Asset Ratio (CRAR) stood at 17.28% in 2023
against 14.83% in 2022 which stayed much above the minimum required ceiling of 12.50% as per Basel-iii accord. Total deposits
customer-base of MDB grew by 43,134 to 230,373 in 2023 from 187,239 accounts in 2022 with considerable growth in the rural customer
base. In our strategic action, we are giving priority to developing MSMEs placing special attention in extending finance to manufacturing
sector. A total of 953 MSME entrepreneurs were stood at BDT 5,684.14 million in 2023 against 517 MSME entrepreneurs and loans amount
of BDT 5,687.07 million in 2022. We’re getting growth rates above the market benchmark which gives us confidence for the future.

In the year 2020, MDB launched its Islami Banking Window “MDB Saalam” on 23 April 2020 after getting approval from Bangladesh
Bank and within the short time break Deposit stood at BDT 3569.73 million in Dec’23 compared to BDT 2,952.89 million in Dec’22,
Investment stood at BDT 2,545.68 million in Dec’22 compared to BDT 2,297.92 million in Dec’22 and aggregated total assets stood at
BDT 3,593.51 million in Dec’23 compared to BDT 2,972.78 million in Dec’22. Operating profit of Islami Banking Window of the Bank
reported at BDT 18.57 million in Dec’23 compared to BDT 24.95 million in Dec’22.

On the other hand, Off-shore Banking Unit (OBU) after getting approval from Bangladesh Bank launched of its operation on 20 June
2020 and as of 31 December 2023 total disbursed amount of loans stood at USD 30.79 million in Dec’23 compared to USD 29.10 million
in Dec’22 out of bill purchase and discounting facilities. During the period, OBU borrowed USD 19.85 million in Dec’23 compared to USD
6.50 million in Dec’22 from Midland on-shore (DBU-Treasury) and other Banks’ OBU. It is noteworthy to mention that from the very
outset of launching, the OBU gathered business momentum and as on 31 December 2023, its operating profit reported to USD 200,465
in Dec’23 compared to USD 99,243 in Dec’22.

Being committed to the clients, community and economy, the Bank is on its way to binding the nation together by including people from
all across the frontiers - Urban and Rural, Local and Global. The Bank is forging ahead with a soaring ambition. We are convinced that
Midland Bank will be successful in realizing its full potential to become the leading client-centric Bank in country.

MDB Profile
Midland Bank PLC.
04 Annual Report 2023
Corporate Information
Name of the Company: Authorized Capital: Chairman:
Midland Bank PLC. (MDB) BDT 10,000 million Nilufer Zafarullah

Legal Form: Paid up Capital: Vice Chairman:

Public Limited Company BDT 6,396.70 million Md. Shamsuzzaman
Registered Office: Total Capital (Tier-I & II): Managing Director & CEO
N.B. Tower (Level 6 to 9), BDT 9,178.36 million Md. Ahsan-uz Zaman
40/7 North Avenue, Gulshan-2, Dhaka-1212
Date of Incorporation: Capital to Risk Weighted Deputy Managing Director
March 20, 2013 Asset Ratio (CRAR): 17.28% Md. Zahid Hossain
Company Registration: Total Assets: Chief Risk Officer (CRO)
C-108070/13 BDT 83,425.87 million Md. Zahid Hossain
Bangladesh Bank Permission: Statutory Reserves Chief Financial Officer (CFO)
BRPD (P-3)745(67)/2013-1665, April 09, 2013 BDT 1881.77 million Md. Zahirul Islam, FCA
Formal Inauguration: Earnings Per Share (EPS) Company Secretary
June 20, 2013 BDT 1.77 Khalid Mohammad Sharif FCS

Institutional Banking Activities:

All types of commercial banking activities Head of Internal Control &
Net Asset Value Per Share
(both conventional and islamic), Money Compliance:
(NAV) BDT 14.31
Market Operations, Financial intermediary Mohammad Syejuddin Ahmmed
services and any related financial services.
Delivery Channels:
39 Branches (19 urban and 20 rural), 19
Total Manpower Statutory Auditors
Sub-branches, 131 Agent Banking Centre, 11
Collection Booths, 65 ATMs, Real-Time Online Employee: 807
(including 292 contractual) Hoda Vasi Chowdhury & Co.
Banking, Internet Banking, SMS/Alert Banking,
Debit/ Credit/ Prepaid Card with global access,
Chartered Accountants
Shared network across the country.

Contact Centre: Website: Accounting Year-end

16596 (Short Code), (+88) 09617016596 and www.midlandbankbd.net December 31
(+88) 09611016596

Credit Rating: Emerging Credit Rating Limited (ECRL)

Bank’s long term rating is “A+” which indicates strong capacity to meet
Long Term A+ financial commitments/obligations of the Bank. It is judged to be of high
quality and are subject to low variability in credit risk.

Bank’s short term rating stood at ST-2 (High Grade). It indicates strong
capacity for timely repayment of obligations. It is also characterised with
Short Term ST-2
commendable position in terms of liquidity, internal fund generation, and
access to alternative sources of funds is outstanding.
Bank’s outlook status is “Stable” which underlines that Bank’s overall status
Outlook Status Stable is stable. The outlook provides information to investors on the potential
evolution of a rating, thereby underpins the precision of the rating status.
Valid till June 30, 2024

Corporate Information
Midland Bank PLC.
05 Annual Report 2023
Value creation for stakeholders during 2023
Customers: 2023 2022
Total Deposit accounts 291316 239,952
Total advances and loans/investment accounts 5397 4,757
Total Deposits BDT 60,302.72 M BDT 57,763.01 M
Interest paid to customers BDT 3,740.46 M BDT 3,201.24 M
Loans & advances/investments BDT 54,862.66 M BDT 52,792.81 M
Interest/profit received from loans/investments BDT 4,503.46 M BDT 3,657.21 M
Investment in government securities BDT 13,889.64 M BDT 13,186.01 M
Income from investments BDT 1,612.53 M BDT 1,455.08 M
Shareholders:
Paid up Capital BDT 6,396.70 M BDT 5,696.70 M
Shareholders’ equity BDT 9,150.66 M BDT 7,646.54 M
Profit after tax BDT 1,133.11 M BDT 561.97 M
Earnings per share (EPS) BDT 1.77 BDT 0.88
Dividend payout 5.00% cash
(Recommended 5% cash dividend for the FY 2023) 5.00% cash

Employees:
Total regular headcount 515 488
Total contractual headcount 292 239
Total staff cost BDT 708.32 M BDT 635.09 M
Operating profit before provision of loans & Tax BDT 1,743.00 M BDT 1,526.73 M
Net profit after tax BDT 1,133.11 M BDT 561.97 M
Talent development training hours 2,500 hrs (approx.) 1,000 hrs (approx.)
Per employee operating profit before tax BDT 3.38 M 3.13 M
Per employee net profit after tax BDT 2.20 M 1.16 M

Government Institutions:
Tax paid to Government BDT 1,331.60 M BDT 1,229.22 M
VAT & Withholding Tax collected on behalf of Govt. BDT 766.39 M BDT 625.08 M
Excise Duty collected on behalf of government BDT 116.10 M BDT 105.80 M
Business partners:
Commission, exchange & fees BDT 684.08 M BDT 736.39 M
Payment to service providers BDT 511.43 M BDT 373.17 M
No. of correspondent banks (RMA) 154 101
Business partnership signed 88 Deals 177 Deals
Community:
CSR/Donation BDT 17.88 M BDT 27.95 M
Internet customers (midland online) 59,534 44,515
Refinance to SME, Agri, Women and Green Finance 472.80 M 665.02 M
Utility bill collection 14,095.23 M 9,501.27 M
Call received by Contract Centre 112,603 113,545
SMS alert A/C 178,988 143,939
Total Digital A/C 5,799 3,742
Total Digital self e-KYC 14,259 6,204

Corporate Information
Midland Bank PLC.
06 Annual Report 2023
 Deposits grew to
BDT 60,302.72 MN from
BDT 57,763.01 MN (up by 4.40%)

Loans & Advances grew to

BDT 54,862.66 MN from
BDT 52,792.81 MN (3.92 % ahead)

Assets grew to BDT 83,425.87 MN

from BDT 79,866.87 MN
(4.46% ahead)
Performance
Dashboard
2023
Volume Growth Operating profit grew to
BDT 1,743.00 MN from BDT 1,526.78 MN
(up by 14.17%)

Net Profit After Tax grew to

BDT 1,133.11 MN from BDT 561.96 MN
(up by 101.63%)

Earnings Per Share (EPS)

grew to BDT 1.77 MN from
BDT 0.88 MN (101.63% ahead)

Performance Dashboard 2023

Midland Bank PLC.
07 Annual Report 2023
 Shareholders’ Equity grew to
BDT 9,150.66 MN from BDT
7,646.53 MN (up by 19.66%)

Return on Asset (ROA)

increased to 1.39% from
0.75% (up by 0.64%)

Return on Equity (ROE)

increased to 13.49% from
7.47% (up by 6.02%)
Performance
Dashboard
2023
Volume Growth Capital to Risk Weighted Assets
Ratio (CRAR) increased to 17.28%
from 14.83% (up by 2.45%)

Net Assets Value per share

grew to BDT 14.31 from
BDT 11.95 (up by 19.75%)

NPL Ratio increased to 3.81%

from 2.78% (up by 1.03%)

Performance Dashboard 2023

Midland Bank PLC.
08 Annual Report 2023
Vision
We seek to be the first choice of our customers as a distinct financial service provider, trusted, respected and valued by all stakeholders
within the region and beyond pursuing an endless voyage towards excellence in every respect.

Mission
We, in our everyday journey forward, nurture and practice the following values underpinning supporting our mission:
• To continuously provide quality banking service with enhanced customer focus and innovate a wide variety of need based
products with widely popular solutions.

• To achieve supremacy in customer service through state-of-the-art delivery channels and user-friendly tools and technology.

• To sharpen leadership with the standard of a learning organization well supported by the finest team of banking experts and
professionals.

• To maintain a healthy and diversified financial profile for inclusive economic growth.

• To be a responsible social enterprise by effectively blending commercial pursuits with social banking.

• To be the benchmark for the regulators in terms of compliance, corporate governance and ethics.

• To build long-term shareholder value with consistent growth momentum.

Vision & Mission

Midland Bank PLC.
09 Annual Report 2023
 Corporate
Values
Quality Integrity

Mutual Building
Togetherness
Respect the Future

Resposible Customer
Citizenship Centricity

Customer Centricity
We are a listening and caring partner.
We continuously improve our efficiency to serve customer better.
We Focus on solutions and deliver on our promises.

Quality
We strive to exceed expectations.
We take delight in delivering high standards in all areas of operations.
We do not compromise with our service standard.

Togetherness
We value teamwork and work together for success.
We support each other in our journey to excellence.
We draw strength from our diversity and synergy.

Mutual Respect
We treat our customers and colleagues with respect.
We inspire each individual so that we can make a difference.
We recognize achievement and ensure rewards and fair returns for all.

Integrity
Integrity and ethics is the hallmark of our banking relationship.
We prefer truth, justice and fair-play above all means.
We do business on a win-win proposition.

Responsible Citizenship
We are tax compliant.
We are committed to corporate governance and internal control and compliance.
We are respectful to the laws and values of the land.

Building the Future

We believe in real and sustainable development.
We are going green to protect our planet and our environment.
We keep building a family with our employees, shareholders, customers and community

Corporate Values
Midland Bank PLC.
10 Annual Report 2023
 CAPITAL STRENGTH

OPTIMIZATION OF PROFITABILITY

RISK MITIGATION

INNOVATIVE BANKING

Strategic Goals
Balance Sheet Focus
Our top priority is a resilient and fortress like Balance Sheet based on solid provisioning and sustainable profitability.

Capital Strength
We ensure that our Bank is adequately capitalized to weather any financial downturn and look forward to meeting new norms as they
phase in.

Cost Control
We emphasize efficient and competitive cost management without compromising our quality and maximize profitability through
planned reduction in cost of funds, increased yield on advances and investments besides downsizing the cost of operation through
technological leverage.

Risk Mitigation
We manage financial as well as non-financial risks to optimize profitability through effective risk management and internal control
system.

Innovative Banking
We inspire innovation in product, process and market as the root for growth as much as technology as the prime agent for change.

Business Diversification
We continue to diversify our portfolio into leading corporate, large businesses, MSMEs, agriculture and retail customers to come
together in a more sensible way.

A Better Human Force

We adore our employees and foster their growth as the future force with constant training and development.

For a Green Living Habitat

We are careful about the community and the environment and exert effort to make our homeland a green living habitat for all.

Strategic Goals
Midland Bank PLC.
11 Annual Report 2023
Customer Charter
• We have a commitment to the customers to build long-term beneficial relationship based on mutual respect, pursuit of
excellence and integrity.
• We appreciate customers’ needs and demands in the right perspective and remain constantly well aware of their needs of
services and our ability to deliver.
• We are aware of our contractual commitments and obligations with our customers and meet the terms of agreements with
due diligence.
• We pursue good common practices and digital procedures for customers’ comfort and put a grievance redress system in
place to mitigate their complaints.
• If there is any disagreement, we step forward to seek speedy and equitable solutions framed in the context of long-term
and enduring relationship.
• We have Product Policy Guidelines (PPG) outlining the guiding principles in respect of various products and services offered
by the Bank and the terms and conditions governing the conduct of the accounts.
• We enforce greater transparency in dealing with individual customers and create awareness among customers of their rights.
• We create customer value, loyalty and equity, which add to customer delight over a lifetime of patronage.

Ethical Preferences
• We ensure full compliance with the laws of the land.
• We exercise zero tolerance to misconduct and corruption.
• We speak up when we sense any breach of rules and regulations.
• We stay compliant on Anti Money Laundering and Combating Financing of Terrorism
guidelines and other prudential regulations.
• We sustain confidentiality of our customers and fidelity to our principles.
• We do not go beyond the bounds of our banking business.
• We always look forward to sustainable means, free of risks and full of returns.

Customer Charter
Midland Bank PLC.
12 Annual Report 2023
 Milestones

20 March 20 June
2013 2013
First Branch Operation
Commencement
(Dilkusha Corporate
of Business
Branch)

11 Sep 01 Oct
2014 2015
midland online Completion of
(Internet Banking) Centralized Banking
launched Model (CBM)

23 Jan
02 Oct 2017 07 March
2017 First Agent
2019
Became one of the few Banking Centre
member banks of Became PFI for project
NPSB fund transfer of Bangladesh Bank
project of Bangladesh funded by IDA, World
Bank Bank group

05 Dec 31 Dec
2019 2019
Obtained Islami
Banking Window Crossing of
License from 100,000
Bangladesh Bank Customers
23 March
2020 05 July
30 June Obtained Off-Shore
2020
Banking (OBU) 2021
License Launched Automated
Bank’s Total Capital Challan (A-Challan)
crossed BDT 8,000 service successfully as
million benchmark one of the pioneer
banks

20 June
2022 02 Oct
Launched Special 20 March 2022
Deposit Product 2023 Launched Retail
‘Double Benefit Sales Department
Plus Scheme’ Listed with
Stock
Exchange(s)

Milestones
Midland Bank PLC.
13 Annual Report 2023
MDB Financial Performance and Ratios: Five Years Overview
in BDT Million
Financial Highlights % Changes
2019 2020 2021 2022 2023 in 2023
Over 2022
Income Statement:

Interest income 4,276.13 3,160.18 3,232.76 3,657.21 4,503 23.14%

Interest expenses 2,983.90 2,748.19 2,262.66 3,201.24 3,740 16.84%
Net interest income 1,292.23 411.99 970.11 455.97 763 67.34%
Investment income 649.62 1,565.25 1,358.11 1,455.08 1,613 10.82%
Commission, exchange and brokerage 321.05 276.58 224.19 736.39 684 -7.10%
Other operating income 65.02 66.31 83.72 98.25 132 34.49%
Total Operating income 2,327.92 2,320.13 2,636.12 2,745.69 3,192 16.25%
Operating expenses 1,042.36 1,102.30 1,065.22 1,218.96 1,449 18.85%
Profit before provision and tax 1,285.57 1,217.83 1,570.90 1,526.73 1,743 14.17%
Provision for loans and off-balance sheet exposure 197.14 257.86 444.74 438.09 466 6.33%
Profit after provision before tax 1,088.43 959.97 1,126.17 1,088.64 1,277 17.32%
Provision for tax 491.84 303.61 612.15 526.67 144 -72.64%
Profit after tax 596.59 656.36 514.02 561.97 1,133 101.63%
Balance Sheet:

Authorized capital 10,000 10,000 10,000 10,000 10,000 0.00%

Paid-up capital 5,697 5,697 5,697 5,697 6,397 12.29%

Total shareholders’ equity 7,078 7,614 7,404 7,647 9,151 19.67%

Deposits 39,501 45,068 50,730 57,763 60,303 4.40%

Loans and advances 31,750 39,087 45,867 52,793 54,863 3.92%

Investments 12,710 14,633 14,980 16,906 17,380 2.81%

Fixed assets 259 660 634 575 611 6.28%

Earning assets 47,294 55,919 61,808 70,817 72,680 2.63%
Total assets 52,911 63,146 69,019 79,867 83,426 4.46%

Total liabilities 45,834 55,532 61,615 72,220 74,275 2.85%

Total Off-balance sheet exposure 5,979 9,249 12,300 12,675 13,957 10.11%

Foreign Exchange Business:

Import 13,497 7,665 11,773 16,616 20,667 24.39%

Export 7,430 7,847 15,322 19,450 18,679 -3.96%

Inward Remittance (wages & others) 3,248 3,409 3,835 4,450 6,227 39.95%
Capital Measure:

Risk Weighted Assets (RWA) 35,572 45,800 51,240 55,257 53,123 -3.86%
Core Capital (Tier-I) 7,075 7,313 7,380 7,631 8,579 12.42%
Supplementary Capital (Tier-II) 511 675 753 565 599 6.08%
Total Capital Held (T-I + T-II) 7,587 7,988 8,133 8,196 9,178 11.99%
Required Capital (12.50% of RWA, Or 4,000 million which is higher) 4,446 5,725 6,405 6,907 6,640 -3.86%

Capital Surplus/(Deficit), (A-B) 3,140 2,263 1,728 1,289 2,538 96.90%

MDB Financial Performance and Ratios

Midland Bank PLC.
14 Annual Report 2023
MDB Financial Performance and Ratios: Five Years Overview
in BDT Million
Financial Highlights % Changes
2019 2020 2021 2022 2023 in 2023
Over 2022
Tier I Capital Ratio 19.89% 15.97% 14.40% 13.81% 16.15% 2.34%
Tier II Capital Ratio 1.44% 1.47% 1.47% 1.02% 1.13% 0.11%
Capital to Risk Weighted Asset Ratio (CRAR) 21.33% 17.44% 15.87% 14.83% 17.28% 2.45%

Credit Quality:

Non-performing loans (NPLs) 570 453 1,455 1,470 2,092 42.31%

NPL to total loans and advances (%) 1.79% 1.16% 3.17% 2.78% 3.81% 1.03%
Provision for unclassified loans 457 590 643 452 495 9.42%
Provision for classified loans 264 784 455 955 1,449 51.71%
Provision for Off-Balance Sheet exposure 54 85 110 113 105 -7.26%
Provision for other assets and diminution in Investments 48 72 139 280 201 -28.14%
Share Information:

No. of Shares outstanding 569.67 M 569.67 M 569.67 M 569.67 M 6,396.70 M 12.29%

Earnings per share (EPS), (BDT) 0.98 1.15 0.90 0.88 1.77 101.14%

Net Assets Value Per Share (BDT) 12.42 13.37 13.00 11.95 14.31 17.59%
Profitability & Performance Ratio:

Net Interest Margin (NIM) 4.29% 2.41% 4.11% 2.78% 3.36% 0.58%

Advance to Deposit Ratio 81.64% 82.01% 83.62% 81.71% 84.51% 2.80%

Cost to income Ratio 44.78% 47.51% 40.41% 44.40% 45.39% 0.99%

Cost of fund on average deposits 7.71% 6.14% 4.17% 5.01% 5.44% 0.43%

Return on average assets (ROA) 1.21% 1.13% 0.78% 0.75% 1.39% 0.64%

Return on shareholders’ equity (ROE) 8.80% 8.96% 6.85% 7.47% 13.49% 6.02%
Liquidity Ratio:

Cash Reserve Ratio (CRR) 6.67% 4.42% 4.52% 4.82% 4.50% -0.32%
Statutory Liquidity Ratio (SLR) 35.18% 13.04% 31.32% 27.92% 26.80% -1.12%
Liquidity Coverage Ratio (LCR) 163.59% 147.51% 156.22% 214.04% 223.03% 8.99%
Net Stable Funding Ratio (NSFR) 109.99% 114.81% 101.00% 109.80% 110.15% 0.35%

Leverage Ratio 12.65% 11.17% 9.89% 9.02% 9.76% 0.74%

Other information:

No. of Branches 33 34 35 37 39 5.41%

No. of Sub-Branches 2 7 13 16 19 18.75%

No. of Collection Booths 6 7 10 10 10 0.00%

No. of ATM 38 44 51 51 65 27.45%
Agent Banking Centre (ABC) 46 60 100 100 131 31.00%
No. of employees including contractual staff of 632 650 711 727 807 11.00%
225 in 2022 and 239 in 2023)
Number RMA 121 122 101 101 154 52.48%

No. of NOSTRO Accounts (Five Major currency) 15 15 15 15 17 13.33%

MDB Financial Performance and Ratios

Midland Bank PLC.
15 Annual Report 2023
 The Sponsors and Other Shareholders

1 Mr. Kazi Zafarullah Sponsor Shareholder 0.24%

2 Mrs. Nilufer Zafarullah Sponsor Shareholder 2.00%
3 Mr. Kazi Omar Zafar Sponsor Shareholder 2.00%
4 Ms. Anushka Mehreen Zafar Sponsor Shareholder 2.00%
5 Mr. Kazi Raihan Zafar Sponsor Shareholder 2.00%
6 Dr. Kazi Shahidullah Sponsor Shareholder 0.22%
7 Mrs. Sabiha Mahboob Sponsor Shareholder 0.22%
8 Ms. Scherezad Joya Monami Latif Sponsor Shareholder 8.68%
9 Mr. Abdullah Ahmed Yousuf Sponsor Shareholder 4.90%
10 Mr. Nazib Ahmed Sponsor Shareholder 0.22%
11 Mrs. Israt Ahmed Sponsor Shareholder 0.22%
12 Dr. Fahmida Haque Sponsor Shareholder 0.22%
13 Mr. Niranjan Chandra Saha (Deceased) Sponsor Shareholder 0.22%
14 Mrs. Salina Maksuda Sponsor Shareholder 0.22%
15 Mr. Basudev Saha Sponsor Shareholder 0.22%
16 Reedisha Knitex Ltd. (Rep. by: Mr. Rezaul Karim) Sponsor Shareholder 4.45%
17 Mondol Fabrics Ltd. (Rep. by: Mr. Abdul Momin Mondol) Sponsor Shareholder 4.45%
18 Liberty Knitwear Ltd. (Rep. by: Mr. Md. Samsuzzaman) Sponsor Shareholder 4.68%
19 Hazrat Amanat Shah Spinning Mills Ltd. (Rep. by: Mrs. Lutfa Begum) Sponsor Shareholder 2.03%
20 Garment Export Village Ltd. (Rep. by: Mrs. Shahida Alam) Sponsor Shareholder 0.16%
21 Beq Knit Ltd. (Rep. by: Mr. Hafizur Rahman Sharkar) Sponsor Shareholder 4.23%
22 Mr. Master Abul Kashem Sponsor Shareholder 4.12%
23 Mr. Mohammed Jamal Ullah Sponsor Shareholder 3.58%
24 Al-haj Mohammed Issa Badsha Sponsor Shareholder 0.19%
25 Mr. Ahsan Khan Chowdhury Sponsor Shareholder 4.45%
26 Mr. Md. Wahid Miah Sponsor Shareholder 4.45%
27 Popular Pharmaceuticals Ltd. (Rep. by: Dr. Mostafizur Rahman) Director Shareholder 4.45%
28 Mr. Khandaker Rashed-S-Zaman Sponsor Shareholder 1.43%
29 Mr. A K M Badiul Alam Director Shareholder 3.00%
30 Explore Garments Limited (Rep. by: Mr. Kamal Hossain) Director Shareholder 4.45%
31 Next Collections Limited (Rep. by: Mrs. Shahnaj Parveen) Director Shareholder 4.45%
32 Mother Steel Limited (Rep. by: Mrs. Nigar Sultana Daizy) Shareholder 0.33%
33 Azan Limited (Rep. by: Mrs. Salma Issa) Shareholder 0.33%
34 Ms. Mutaffin Issa Shareholder 0.19%
35 Ms. Moomtahina Issa Shareholder 3.75%
36 Mrs. Shahnaz Jamal Shareholder 0.28%
37 Mr. Walid Mohammed Shamuel Shareholder 0.32%
38 Mrs. Fariha Nousheen Shareholder 0.28%
39 Mrs. Rasheda Zaman Shareholder 0.31%
40 Ms. Khandaker Sabrina Zaman Shareholder 0.71%
41 Mr. Mohammed Helal Mia Shareholder 2.42%
42 Dr. A.F.M Ruhal Haque Shareholder 0.06%
43 Mr. Ziaul Haque Shareholder 0.11%
44 Dr. Mehjabin Haque Shareholder 0.06%
45 Mr. Manshood Alam Shareholder 1.29%
46 Mr. Kazi Shayan Ekramullah Shareholder 0.22%
47 Mr. Zobair Mahboob Latif Shareholder 0.22%
48 General Public and Institution through IPO Shareholder 10.94%
Total 100.00%

The Sponsor Shareholders

Midland Bank PLC.
16 Annual Report 2023
The Board of
Directors &
Committees
 Mrs. Nilufer Zafarullah
Chairman
Mrs. Nilufer Zafarullah is the Chairman of Midland Bank PLC. An architect
by profession, Mrs. Zafarullah has contributed to education and
development sector for over 26 years. She is renowned for her
humanitarian effort. She is a member of the Board of Trustees of
Independent University Bangladesh (IUB) and Chittagong Independent
University (CIU). She is also a Director of Hong Kong Shanghai Manjala
Textiles Ltd. and Donor Trustee of Begum Zebunnesa & Kazi
Mahabubullah Gono Kallyan Trust.

As a life member of Zonta International, a worldwide organization for

executives in the business profession, Mrs. Nilufer Zafarullah provided her
services to improve legal, political, economics, health and professional
status of woman at the global and local levels. Her leadership competence
was evident when she served Zonta International District 25 comprising of
Bangladesh, India, Nepal and Srilanka Area 02 as Director and District 25 as
Lt. Governor from 1994-96 and 2006-08 respectively.

She was a Member of the National Parliament in the 9th and 10th Parliament.
She also served as the Chairman of the Parliamentary Standing Committee
for the Ministry of Foreign Affairs, Government of Bangladesh from 2012-13,
in the ninth Parliament.

The Board of Directors

Midland Bank PLC.
18 Annual Report 2023
Mr. Md. Shamsuzzaman
Vice Chairman
Mr. Md. Shamsuzzaman, is the Vice Chairman of Midland Bank PLC. He is the
nominee director from Liberty Knitwear. Mr Shamsuzzaman is a prominent
industrialist & holds Directorship in multiple profitable ventures like Liberty
Knitwear Ltd., Orient Chem-tex Ltd., Micro Fiber Ltd., Midland Knitwear Ltd.,
A-One Polar Ltd., Tangon Garments Ltd. and Turbingen Chemicals (BD) Ltd.

In his previous term with MDB, Mr. Shamsuzzaman acted as the Chairman of
Risk Management Committee as well as Member of the Audit Committee of
the Bank. He is a Textile Engineer and active in many community
development and social service programs.

Mr. Master Abul Kashem

Director
Mr. Master Abul Kashem is the Founding Director of Midland Bank PLC. He is
also a member of the Executive Committee of the Bank. He has over 27 years
of experience in the Iron & Steel industry. He was the highest tax payer in
Chittagong District for four times - three consecutive years - 2009, 2010 &
2011 and recently for the year of 2016. He is an ex-member of the Executive
Committee of Bangladesh Ship Breakers and Recyclers Association. He is a
member of the Chittagong Seniors’ Club Limited, a life member of Sitakunda
Samity Chittagong and Maa-O-Shishu Hospital and also a member of
Sitakunda Community Police Committee. Ex-President of Shitalpur High
School and Shitalpur Gouchia Madrasha, Shitakunda, Chittagong.

The Board of Directors

Midland Bank PLC.
19 Annual Report 2023
Mr. Kazi Omar Zafar
Director
Mr. Kazi Omar Zafar is a Sponsor Director and a member of the Executive Committee
of Midland Bank PLC. After completing B.F.A. Degree from Clark University in the USA,
Mr. Kazi Omar Zafar started his early career as an exhibiting artist in New York. His 21
years business career began with ship management in Greece and in Bangladesh as
the Managing Director of Refresh 360 Ltd, that ran as a 3D animation company for few
years. During his formative business years he also ran the concern, Reliance Textile
Industries, after which he went back to Greece and then shortly returned to
Bangladesh as consultant for Chinese firms; whereby he successfully implemented
Bangladesh’s first large scale Chinese G to G investment in the fertilizer sector.

Mr. Zafar has ventured into the energy business as CEO, where his family owned
company Hongkong Shanghai Manjala Power Limited (HSMPL) has recently signed
agreement with GOB to implement offshore LNG Terminal project. Simultaneously, Mr.
Zafar is working with various foreign JV partners for the LNG business and for future
energy infrastructure business in Bangladesh. Mr. Zafar, is an energetic and promising
entrepreneur and apart from his numerous business interests in Bangladesh and
abroad, Mr. Zafar is also an avid sportsman who constantly participates in Squash
tournaments. Mr. Zafar is compassionate about social responsibility and contributes to
philanthropic services for the underprivileged women and children. This apart, he has
affiliation with a number of social groups. He is a donor trustee of Begum Zebunnessa
and Kazi Mahabubullah Gono Kallyan Trust.

Mr. Kazi Raihan Zafar

Director
Mr. Kazi Raihan Zafar is a Sponsor Director of Midland Bank PLC. He
completed B.F.A. Degree from Parsons School of Design, New York, USA.
Since returning to Bangladesh, Mr. Zafar is engaged in his family owned
Textile business i.e. Hong Kong Shanghai Manjala Textiles Limited (HSMTL)
as well as Power company i.e. Hongkong Shanghai Manjala Power Limited
(HSMPL) as Directors. The power company has agreement with GOB to
implement offshore LNG Terminal project. Simultaneously, Mr. Zafar is
working with various foreign JV partners for the LNG business and for future
energy infrastructure business in Bangladesh. In addition to his relentless
thrive for setting up & operating successful ventures, Mr. Zafar is
compassionate about social responsibility and contributes to philanthropic
services for the underprivileged women and children, has affiliation with a
number of social groups and donor trustee of Begum Zebunnessa and Kazi
Mahabubullah Gono Kallyan Trust.

The Board of Directors

Midland Bank PLC.
20 Annual Report 2023
Mr. Abdullah Ahmed Yousuf
Director
Mr. Abdullah Ahmed Yousuf is one of the sponsor shareholders of Midland
Bank. He holds a B.Sc. (Hons) and M.Sc. in Geography from Dhaka University.
He is a proponent of higher education and is currently teaching in Auckland,
New Zealand. Mr. Ahmed is associated with various CSR initiative. He is a
Donor Trustee of Zebunnessa and Kazi Mahabubullah Gono Kallyan Trust.

Mr. Alhaj Mohammad Helal Miah

Director
Mr. Alhaj Mohammad Helal Miah is a member of Board of Director of Midland
Bank PLC. He is also a member of the audit committee. Having more than 35
years of experience in the textile industry, he has expanded the business in
different sectors. Mr. Helal Miah is currently the Chairman & Managing
Director of Standard Co. Ltd., Chairman of Amanat Shah Group Ltd., Hazrat
Amanat Shah Securities Ltd., Amanat Shah Weaving Processing Ltd., and
Hazrat Amanat Shah Spinning Mills Ltd.

He is also a member of the Governors Board at Southeast University, and a

Member of the Bangladesh Red Crescent Society, Diabetic Association of
Bangladesh, Narsingdi Club, and Narsingdi Foundation. Additionally, he is the
President of Bangladesh Lungi Manufacturers, Traders & Exporters.

The Board of Directors

Midland Bank PLC.
21 Annual Report 2023
Mr. Ahsan Khan Chowdhury
Director
Ahsan Khan Chowdhury is the Founding Director of Midland Bank PLC. He is
also a member of the Executive Committee of the Bank. He is the Chief
Executive Officer & Chairman of PRAN-RFL Group, one of the leading
business conglomerates in Bangladesh. Mr. Chowdhury initially studied in
Dhaka and later, went to USA for higher studies and completed graduation
from Wartburg College Iowa in 1992.

Mr. Chowdhury started his business career in the family Real State, Food,
Plastic and Light engineering business. He worked in all three fields and was
extremely successful in making profitable deals for his company. Under his
dynamic leadership, PRAN-RFL Group earned extensive acceptability &
recognition in Bangladesh as well as globally in a short span of time. Today,
it is the fastest growing corporate in Bangladesh, which contributes
significantly to the socio-economic, development of the country. Currently
the group has diversified interest in Agro-processing, Food and Plastic, Light
Engineering, Banking etc. The group has its own production facilities in 13
different locations all over Bangladesh. The Group is directly employing over
95000 people and another 15,00,000 people subsists of PRAN-RFL Group.

Over the last 26 years, Mr. Chowdhury’s role is instrumental in the success of
the Group. By profession he is an entrepreneur, but he is a pioneer on several
fronts. He is known as an executive in the fields of sales, marketing and
business development. From the start of his career, he had special focus on
Sales & Marketing with a strong vision to make his products and services
available in every shop even at the remotest parts of the country. He travels
all over Bangladesh to build up the strong sales and distribution network.
Today the group occupies the largest market share in respective industries
of Bangladesh despite tough competition from the multinational companies.
Mr. Chowdhury strongly believes that in spite of Bangladesh being the
world’s most densely populated and poorest country, there is a lot of
potential for development if given an opportunity. After winning the hearts of
millions in Bangladesh, Mr. Chowdhury focused on export market. Under his
charismatic and effective leadership the group has established overseas
offices in Dubai, Oman, India, Africa, Malaysia and Spain. Currently, his group
is exporting its products to over 134 countries of the world. In recognition of
Mr. Chowdhury’s outstanding contribution in exports his company was
awarded with Best Exporters Trophy for last 13 consecutive years by the
government of Bangladesh. As a stepping stone, his company has
successfully installed its production facility in India and Nepal, emerging as
the first Bangladeshi Multinational company with production facilities in
different parts of the world.

Mr. Chowdhury’s father, Late Major General Amjad Khan Chowdhury (Retd.),
was a soldier turned into a businessman who started the family business in
1980 with the strong support of his mother, Sabiha Amjad, who continually
worked with him to establish the business.

Mr. Chowdhury is an active member of all Trade and Commerce bodies,

associations & clubs in Bangladesh. He is involved in many socio-economic
activities to serve the community.

The Board of Directors

Midland Bank PLC.
22 Annual Report 2023
Mr. Rezaul Karim
Director
Mr. Rezaul Karim is a member of the Board of Directors of Midland Bank PLC.
as the Nominee Director of Reedisha Knitex Limited. He is also the Chairman
of the Executive Committee of the Bank. He is a well-known and respected
personality in the business community of Bangladesh for more than 41 years.
He is also the Chairman of the Board of Trustees of Southeast University
Trust and Vice President of Bangladesh Textile Mills Association (BTMA). He
is engaged in many social and philanthropic activities.

Mr. A.K.M. Badiul Alam

Director
Mr. A.K.M. Badiul Alam is a member of the Board of Directors of Midland Bank
PLC. as the nominee Director of Garments Export Village Limited. He is also
member of the Executive Committee of the Board of Directors of the Bank.
On completion of post-Graduation with Honors in Management from
University of Dhaka, Mr. A.K.M. Badiul Alam chose “Business” as his
profession. In 1984, he established a small textile weaving unit, thereafter, he
turned his business line to the trend of national demand of the time. He has
a successful story in marketing, networking for exporting RMG as well as in
Apparel Manufacture. Under the leadership of Mr. Alam, AMTRANET GROUP
has become a one of the prominent RMG Exporters of Bangladesh.

His initiatives have created employment to many unemployed and made

unskilled workers to valuable workforce, who are now rendering their labor
and efforts for development of the national economy. Besides RMG
Manufacturing and exporting, Mr. Alam has also undertaken initiatives to
establish companies relating to Electricity generation and Oil refinery. He has
also involved with the Medical service, Technical education, local and
international standard basic educational institutions.

For extra ordinary performance in RMG Export, Mr. Alam has been awarded
CIP status by the Ministry of Commerce, Government of Peoples Republic of
Bangladesh. Mr. Alam also served as Director of BGMEA in 2019-2021
session.

The Board of Directors

Midland Bank PLC.
23 Annual Report 2023
Mrs. Shahnaj Parveen
Director
Mrs. Shahnaj Parveen is a Member of Board of Directors of Midland Bank
PLC. as the Nominee Director of Refat Garments Ltd. She is also a Member
of the Risk Management Committee of the Bank.

Mr. Mohammed Jamal Ullah

Director
Mr. Mohammed Jamal Ullah is one of the Sponsor Directors of Midland Bank
PLC. His core business interests include manufacturing and trading of
commodities. He earned notable name and fame in the business community
for his integrity, devotion and sincerity for a span of 40 years. Mr. Mohammed
Jamal Ullah has a deep affinity and attachment with various sociocultural
organizations. He is a life member of Chattogram Maa-O-Shishu Hospital,
Chittagong Diabetic General Hospital, Bhatiary Golf & Country Club and
Chittagong Boat Club.

The Board of Directors

Midland Bank PLC.
24 Annual Report 2023
Mr. Md. Wahid Miah
Director
Mr. Md. Wahid Miah is a Sponsor Director of Midland Bank PLC. . He is a very
successful businessman and has over 31 years of experience in Textiles,
Garments and Jute industry of the country. Under his dynamic Management
Karim Jute Spinners Ltd. was awarded 'Agrani Bank Trophy' for being best
export performer in 2010 and won the 2011 'National Export Trophy' for the
largest exporter of Jute yarn. Mr. Wahid Miah is a humanitarian who is
passionately involved in encouraging social awareness. Mr. Wahid regularly
donates to educational institutions and promotes women's education. He is
one of the largest donors to Muslim Missions and educational institutions. He
is a life member of Faridpur Diabetic Samitee and an Executive Member of
Bangladesh Textile Mills Association.

Mr. Abdul Momin Mondol, M.P.

Director
Mr. Abdul Momin Mondol is a member of the Board of Directors as Nominee
Director of Mondol Fabrics Limited. He is also a member of Executive
Committee of Midland Bank PLC. . He is a well-known personality in the RMG
sector in Bangladesh for more than 21 years. He is one of the members of the
12th Bangladesh National Parliament from Bangladesh Awami League from
his constituency Sirajganj-5. He was an elected Director of BGMEA during
2011-2012 session.
Presently Mr. Abdul Momin Mondol is the Managing Director of Mondol
Group, which is a well reputed and renowned business conglomerate in
Bangladesh. Mondol Group is engaged in export business all around the
globe for more than 25 years and earned excellence. Mondol Group consists
of various sister concerns, along with a prominent garments accessories
manufacturing unit and a member of the Dhaka Stock Exchange namely
Mondol Securities Ltd. He has been nominated 4 times as CIP by the
Government of the People Republic of Bangladesh. For his contribution to
the export of the country, different entities of Mondol Group consecutively
awarded with National Export Trophy and other recognitions by the
Government. Mr. Abdul Momin Mondol is known as a philanthropist and
prominent personality in his locality and to the entire business community.

The Board of Directors

Midland Bank PLC.
25 Annual Report 2023
Mr. Hafizur Rahman Sarker
Director
Mr. Hafizur Rahman Sarker is a Member of the Board of Directors of Midland
Bank PLC. He represents Beq Knit Limited in the Board. Mr. Sarker is a
renowned industrialist in Bangladesh who started his career in 1988 having
more than 32 years’ of experience in the Garments, Textiles and IT sectors.
He is also member of various business and social organizations like BGMEA,
BTMA, DCC, Gulshan Club, Uttara Club, Kurmitola Golf Club and Savar Golf
Club (SGC). He has been contributing to the national economy, job creation
and socio-economic development of the country.

Dr. Mostafizur Rahman

Director
Dr. Mostafizur Rahman is a member of the Board of Directors of Midland Bank PLC. He
is acknowledged as a role-model for his excellence in providing complete healthcare
services in Bangladesh for the last 38 years.He is the founder of Popular Group that
engaged in Diagnostic services, Pharmaceuticals Manufacturing, Hospital Services and
Medical Education. Currently, he is the Managing Director of the companies within the
Group. In June 1983, Dr. Rahman established Popular Diagnostic Center, where
technologically advanced and highly sophisticated medical instruments are used and
patients are getting accurate medical diagnosis. He established Popular
Pharmaceuticals Limited in 2005 which has created new wonder in the country’s
pharmaceuticals sector by adding innovative technologies in its manufacturing
operations within a very short span of time.
In 2009, he established most modern “Popular Specialized Hospital Limited” with a
vision of delivering world-class hospital services to the patients. Afterwards in 2010, he
opened another chapter in the history of Popular Group by establishing Popular
Medical College and Hospital Ltd. to create good physicians for providing updated
health services to the people of the country.
His amiable friendly behavior in personal life; his honesty, concentration and
persistence in business and above all, his excellent personality attracts all. He is also
engaged with different social welfare-oriented works besides giving healthcare
services. He is the member of executive committee of Bangladesh Private Clinic and
Diagnostic Owners’ Association and Executive Committee Member of Bangladesh
Oushodh Shilpa Shomity, life member of Bangladesh Heart Foundation, Bangladesh
Society of Pathologist, Bangladesh Ultra Sonogram Society, Bogra Shomity,
Shandhani, Bogra and Lions Club, Lalbagh, Dhaka. He also awarded as Commercially
Important Person (CIP) by the Ministry of Industry of the People’s Republic of
Bangladesh in 2016.
He has engaged himself in different research works apart from rendering health
services. He is carrying out research works with John Hopkins University (USA),
Nagasaki University (Japan), ICDDRB (Dhaka), and Dhaka Shishu Hospital.

The Board of Directors

Midland Bank PLC.
26 Annual Report 2023
Mr. Mahbubul Hady Fazle Rab
Independent Director
Mr. Mahbubul Hady Fazle Rab joined the Board of Directors of Midland Bank
PLC. with effect from 06 December 2018. He is a career banker, having
diversified experience in Risk Management, Credit Administration, Risk
Assessment and Structuring with multi-country experience. Initially he
started his job with American Express Bank, Dhaka in 1991 and later served
Standard Chartered Bank and Barclays Bank in Dubai in various responsible
positions. Before retirement from his 25 years banking career, he served at Al
Hilal Bank, Abu Dhabi, UAE as Senior Vice President- Corporate Credit. At
present, he is engaged in consultancy through his own firm i.e. RAB
Consulting, FZE, RAK, UAE. Mr. Mahbubul Hady Fazle Rab is an MBA with
major in Finance from IBA, University of Dhaka.

Mr. Nazimuddin Chowdhury

Independent Director
Mr. Nazimuddin Chowdhury joined the Board of Directors of Midland Bank
PLC. with effect from 26 February 2019. He is also a member of the Board
Audit Committee. As a veteran Civil Servant, he has experience in working at
the highest level of the Government. He served in different ministries in his
career which includes Ministry of Agriculture, Defense, Health and Family
Welfare, Commerce, Railway, Establishment, ERD, Women and Children
Affairs, Home Affairs and Energy and Mineral Resources. Before retirement
from the Government Service, he served as the Secretary of Ministry of
Energy and Mineral Resources. Mr. Nazimuddin Chowdhury has vast
experience in the Director role of different Government and private sector
companies which includes Bangladesh Infrastructure Finance Fund Limited
(BIFFL) and MJL (BD) Limited. He also served as the Chairman of the Board of
Directors of Omera Petroleum Limited.

Mr. Nazimuddin Chowdhury earned his Masters in Arts in History with

Honours from University of Dhaka. He has also earned a second Masters
degree in Government Financial Management from University of Ulster,
Northern Ireland, UK.

The Board of Directors

Midland Bank PLC.
27 Annual Report 2023
Mr. Khandhaker Thanveer Shamsul Islam
Independent Director
Mr. Khandhaker Tanveer Shamsul Islam joined the Board of Directors of
Midland Bank PLC. as Independent Director with effect from September 27,
2022. He is a seasoned senior international banker, who has more than
36years’ experience. He started his banking career in American Express Bank
Ltd. as local Management Trainee in Bangladesh in 1983. He also underwent
12 months’ long Global Management Trainee assignment in Bank’s Head
Quarter in New York. In Bangladesh he acted as Senior Director & Head of
Corporate Banking and Acting Country Manager at American Express Bank
Ltd. in Bangladesh. Subsequently, he worked at ABN ARMO Bank, UAE and
Royal Bank of Scotland, Dubai, UAE (after merger) as Vice President and
Head of Automotive & Wholesale Banking and Senior Vice President and
Head of Credit Portfolio Management and Country Risk Officer respectively.
Finally, he worked as Head of Corporate, Commercial Banking and Financial
Restructuring and Recovery at Commercial Bank of Dubai, UAE. Mr. Islam is
an MBA with major in Finance from IBA, University of Dhaka.

Mr. Mohammad Asif-uz-Zaman

Independent Director
Mr. Mohammad Asif-uz-Zaman joined the Board of Directors of Midland
Bank PLC. as Independent Director with effect from November 7, 2022.The
Independent Director was a veteran Civil Service Officer with experience in
working at the highest level of the Government. He served in different
ministries and Government Departments in his career which includes
Ministry of Primary and Mass Education, ERD- Ministry of Finance, Roads and
Highways Department, Bangladesh Railways, Director General in the Civil
Audit Directorate and Deputy Accountant General and Chief Accounts
Officer at different ministries. He served in the ERD of Ministry of Finance as
Joint Secretary w.e.f. 07.01.2010 and elevated to Additional Secretary on
13.01.2014 and continued his service at ERD. He became Secretary on
30.08.2016 and finally promoted to Senior Secretary on 12.02.2019. Mr.
Zaman has completed his B.Sc. (Hons) and M.Sc. from University of Dhaka.
However, he subsequently completed Post Graduate Diploma in Accounting
from University of Ulster, Northern Ireland, UK and Diploma in Audit
Learning, IDI Oslo, Norway. Moreover, he served in the ERD of Ministry of
Finance for a significant period (from 07.01.2010 to 30.08.2016) and took part
and lead in finalization of numerous international financial deals on behalf of
the Government of Bangladesh.

The Board of Directors

Midland Bank PLC.
28 Annual Report 2023
Mr. Md. Ahsan-uz Zaman
Managing Director & CEO
Mr. Md. Ahsan-uz Zaman is the Managing Director & CEO of Midland Bank
PLC. (MDB). Prior to joining MDB, Mr. Md. Ahsan-uz Zaman was working for
Mutual Trust Bank (MTB) as Additional Managing Director with responsibility
for business catering to companies and individuals, International Trade
Services, Information Technology and Alternative Delivery Channels. He
initially joined MTB as Deputy Managing Director in July 2009 and was
instrumental in developing existing and new client relationships, new
business initiatives, assist in recruiting key officers, providing strategic
direction and managing risk by chairing various Committees of the Bank.
Prior to MTB, Mr. Zaman worked for Bank of America in New York, at its
Global Wealth and Investment Management Division with responsibility for
business across a wide assigned territory. He has diversified banking
experience, having worked at home and abroad, serving JP Morgan Chase
Bank, Morgan Stanley, BNP Paribas and ANZ Grindlays Bank where he joined
as a Management Trainee in Dhaka in 1982. Mr. Zaman completed his MBA
from the Institute of Business Administration of University of Dhaka and is an
accredited mediator. He attended seminars on Risk Management and Capital
Markets conducted by BNP Paribas in New York and received credit training
conducted by ANZ Grindlays Bank in London, Melbourne and Mumbai
including training courses on deposits, operations management, foreign
trade, foreign exchange and presentation skills.

The Board of Directors

Midland Bank PLC.
29 Annual Report 2023
Committees of the Board of Directors
The Executive Committee
Sl. Name Designation
1 Mr. Rezaul Karim Chairman
2 Mr. Kazi Omar Zafar Member
3 Mr. Master Abul Kashem Member
4 Mr. Ahsan Khan Chowdhury Member
5 Mr. A.K.M. Badiul Alam Member
6 Mr. Abdul Momin Mondol M.P. Member
7 Mr. Mahbubul Hady Fazle Rab (Independent Director) Member

The Audit Committee

Sl. Name Designation
1 Mr. Nazim Uddin Chowdhury (Independent Director) Chairman
2 Mr. Mohammad Asif-uz-Zaman (Independent Director) Member
3 Mr. Alhaj Mohammad Helal Miah Member

The Risk Management Committee

Sl. Name Designation
1 Mr. Ahsan Khan Chowdhury Chairman
2 Mr. Md. Shamsuzzaman Member
3 Dr. Mostafizur Rahman Member
4 Mr. Hafizur Rahman Sarker Member
5 Mr. Kazi Raihan Zafar Member

Committees of the Board of Directors

Midland Bank PLC.
30 Annual Report 2023
The Members of the Shariah Supervisory Council

Professor Dr. Muhammad Abul Kalam Azad

Chairman

Dr. Muhammad Nazrul Islam Al-Maruf Mr. N K A Mobin FCA, FCS

Member Member

Mr. Rezaul Karim Mr. Md. Ahsan-uz Zaman

Member Member

The members of the Shariah Supervisory Council

Midland Bank PLC.
31 Annual Report 2023
 The Profile of Shariah Supervisory Council Members
Professor Dr. Muhammad Abul Kalam Azad - Chairman
Professor Dr. Muhammad Abul Kalam Azad, an eminent Islamic scholar and educationist of the country, is the Chairman of the Shariah
Supervisory Council of Midland Bank PLC. He is also the current Chairman of the Shariah Supervisory Board of Islami Bank Foundation
since 2018. During his 25-year education career, he was posted in different Government Colleges including Govt. Kobi Nazrul College
and Govt. Jagannath College as BCS (Education) cadre, teaching Islamic Studies. He also served as the Chairman of the Department of
Islamic Studies of Jagannath University in 2018-2019 term and is currently a Professor of the Department.

Mr. Abul Kalam Azad has completed his BA (Honors) and Masters degree in Dawah and Islamic Studies from Islamic University, Kushtia.
He also completed post-graduation securing 1st place with distinction in Arabic under Islamic University of Madinah Munawwarah, Saudi
Arabia. He earned his Phd from the University of Dhaka in 2011. He has written many Islamic research papers and translated books into
Bangla. He has publication in numerous local and international Islamic journals. He has also contributed to different initiatives of Islamic
Foundation as Author of Islamic books and trainer of workshops and as a member of different committees like ‘Fatwa Committee’ and
‘Research Committee’ on many occasions.

Dr. Muhammad Nazrul Islam Al-Maruf - Member

Dr. Muhammad Nazrul Islam Al-maruf, an eminent Islamic scholar and educationist of the country, is one of the Member of the Shariah
Supervisory Council of Midland Bank PLC. Presently he is serving as Principal of Darul Ulum Hossainiah Kamil Madrasa, Mohakhali,
Dhaka. After completing his initial education with outstanding result (Board Stand 2nd to 6th place) in all public exams under the
Madrasah Education Board, he went to Islamic University of Madinah Munawwarah, Saudi Arabia and earned 1st class in Licentiate (4
years’ graduation). After returning home he achieved MA in Islamic Studies from the University of Dhaka (1st Class 3rd place). He also
earned his PhD from the University of Dhaka in 2011.

Previously he served as the guest professor of Asian University of Bangladesh and Acting Vice Chancellor America Bangladesh
University. He is a member of the examination committee of Bangladesh Madrasah Education Board and Islamic University, Kushtia. He
is one of the authors of the Madrasah Education Board text books. His book ‘Fatwa and Masail’ published by Islamic Foundation,
Bangladesh is one of the renowned books amongst the Muslims of our country.

Mr. N K A Mobin FCA, FCS - Member

Mr. N K A Mobin FCA, FCS is the Managing Director & CEO of Emerging Credit Rating Ltd. (ECRL), a pioneer Credit Rating company in
Bangladesh. Starting his professional career in 1982, he served at KPMG, Dhaka Match Industries Co. Ltd., Karnaphuli Fertilizer Co. Ltd.
(KAFCO), Novartis Bangladesh Limited and lastly Grameenphone Ltd. as Finance Director and Company Secretary for more than 26
years before starting his own rating company. Mr. Mobin has vast experience in working with diverse types of Board of Directors as
Independent and Government Nominated Director. At present he is serving as Independent Director in the Board of Mobil-Jamuna
Lubricants (Bangladesh) Limited from 2019, Shasha Denims Ltd. from 2017 and is a Government Nominated Director in Biman
Bangladesh Airlines Limited since 2016. He is the Senior Vice President and Board member of Dhaka Chamber of Commerce & Industry
(DCCI) for 2020-22 term.

Mr. N K A Mobin earned his MBA and BBA in Finance from University of Dhaka. He completed three executive MBA programmes in
different arenas from Stockholm Business School, Sweden, National University of Singapore and INSEAD (France). He also completed
Management course from AOTS/HIDA in Japan. Mr. N K A Mobin is the Fellow member of Institute of Chartered Accountants of
Bangladesh (ICAB) and the Institute of Chartered Secretaries of Bangladesh (ICSB).

Note: Profiles of Mr. Rezaul Karim and Mr. Md. Ahsan-uz Zaman, the other two members of Shariah Supervisory Council are
furnished in the Profile of Directors.

The Profile of Shariah Supervisory

Council Members
Midland Bank PLC.
32 Annual Report 2023
Management Committees
Senior Management Team (SMT)

Mr. Md. Ahsan-uz Zaman Mr. Md. Zahid Hossain Mr. Mohd. Javed Tarek Khan
Chairman of the SMT Member of the SMT Member of the SMT
Managing Director & CEO Deputy Managing Director & CRO Head of Institutional Banking Division

Mr. Md. Zahirul Islam FCA Mr. Khondkar Towfique Hossain Mr. Md. Nazmul Huda Sarkar
Member of the SMT Member of the SMT Member of the SMT
Head of Financial Administration Division & CFO Head of International Division & NRB Head of Information Technology Division & CTO

Mr. Md. Rashed Akter Mr. Mohammad Syejuddin Ahmmed Mr. Nazmul Ahsan
Member of the SMT Member of the SMT Member of the SMT
Head of Retail Distribution Division Head of Internal Control & Compliance Division Head of Treasury & Market Risk (Front)

Mr. Khalid Mohammad Sharif FCS Mr. Md. Bajlur Rahman Khan Mr. Md. Zubayed Ur Rahman
Member of the SMT Member of the SMT Member Secretary of the SMT
Company Secretary Acting Head of Credit Risk Management Division Head of HR Management Division

Management Committees
Midland Bank PLC.
33 Annual Report 2023
 Asset Liability Committee (ALCO)

Mr. Md. Ahsan-uz Zaman

Chairman of the ALCO
Managing Director & CEO

Mr. Md. Zahid Hossain Mr. Mohd. Javed Tarek Khan Mr. Md. Zahirul Islam, FCA
Member of the ALCO Member of the ALCO Member of the ALCO
Deputy Managing Director & CRO Head of Institutional Banking Division Head of Financial Administration Division & CFO

Mr. Khondkar Towfique Hossain Mr. Md. Rashed Akter Mr. Nazmul Ahsan
Member of the ALCO Member of the ALCO Member Secretary of the ALCO
Head of International Division & NRB Head of Retail Distribution Division Head of Treasury & Market Risk (Front)

Management Committees
Midland Bank PLC.
34 Annual Report 2023
Investment Committee (IC)
1. Mr. Md. Ahsan-uz Zaman
Managing Director and CEO Chairman
2. Mr. Md. Zahid Hossain
Deputy Managing Director & CRO Member
3. Mr. Mohd. Javed Tarek Khan
Head of Institutional Banking Division Member
4. Mr. Md. Zahirul Islam, FCA
Head of Financial Administration Division & CFO Member
5. Mr. Khondkar Towfique Hossain
Head of International Division & NRB Member
6. Mr. Md. Bajlur Rahman
Acting Head of Credit Risk Management Division Member
7. Mr. Md. Rashed Akter
Head of Retail Distribution Division Member
8. Mr. Nazmul Ahsan
Head of Treasury & Market Risk (Front) Member Secretary

Risk Management Committee (RMC)

1. Mr. Md. Zahid Hossain
Deputy Managing Director & CRO Chairman
2. Mr. Mohd. Javed Tarek Khan
Head of Institutional Banking Division Member
3. Mr. Md. Zahirul Islam, FCA
Head of Financial Administration Division & CFO Member
4. Mr. Khondkar Towfique Hossain
Head of International Division & NRB Member
5. Mr. Md. Nazmul Huda Sarkar
Head of Information Technology Division & CTO Member
6 Mr. Md. Rashed Akter
Head of Retail Distribution Division Member
7. Mr. Md. Bajlur Rahman Khan
Acting Head of Credit Risk Management Division Member
8. Mr. Mohammad Syejuddin Ahmmed
Head of Internal Control & Compliance Division Member
9. Mr. Nazmul Ahsan
Head of Treasury & Market Risk (Front) Member
10. Mr. Ashraful Alam
Acting Head of Central Operations & Service Delivery Department Member
12. Mr. Md. Humayoun Kabir
AVP, Risk Management Division Member Secretary

Management Committees
Midland Bank PLC.
35 Annual Report 2023
Credit Committee
1. Mr. Md. Ahsan-uz Zaman
Managing Director and CEO Chairman
2. Mr. Md. Zahid Hossain
Deputy Managing Director & CRO Member
3. Mr. Mohd. Javed Tarek Khan
Head of Institutional Banking Division Member
4. Mr. Khondkar Towfique Hossain
Head of International Division & NRB Member
5. Mr. Md. Rashed Akter
Head of Retail Distribution Division Member
6. Mr. Nazmul Ahsan
Head of Treasury & Market Risk (Front) Member
7. Mr. Md. Bajlur Rahman Khan
Acting Head of Credit Risk Management Division Member Secretary

Anti-Money Laundering Compliance Committee (AMLC)

1. Mr. Md. Zahid Hossain
Deputy Managing Director, CRO & CAMLCO Chairman
2. Mr. Md. Nazmul Huda Sarkar
Head of Information Technology Division & CTO Member
3. Mr. Md. Rashed Akter
Head of Retail Distribution Division Member
4. Mr. Ashraful Alam
Acting Head of Central Operations & Service Delivery Department Member
5. Mr. Rafikul Hasan
SAVP, Trade & Supply Chain Department Member
6. Mr. Md. Zubayed Ur Rahman
Head of HR Management Division Member
7. Mr. Fazal Abdullah
Head of Anti Money Laundering Division Member
8. Mr. Md. Bajlur Rahman Khan
Acting Head of Credit Risk Management Division Member
9. Mr. Khondkar Towfique Hossain
Head of International Division & NRB & DCAMLCO Member Secretary

Social Media and Administration Review Committee (SMAR)

1. Mr. Md. Ahsan-uz Zaman
Managing Director and CEO Chairman
2. Mr. Md. Nazmul Huda Sarkar
Head of Information Technology Division & CTO Member
3. Mr. Md. Rashed Akter
Head of Retail Distribution Division Member
4. Mr. Mohammed Rashadul Anwar
Head of Public Relations Division Member Secretary

Management Committees
Midland Bank PLC.
36 Annual Report 2023
ICT Steering Committee
1. Mr. Md. Zahid Hossain
Deputy Managing Director & CRO Chairman
2. Mr. Mohd. Javed Tarek Khan
Head of Institutional Banking Division Member
3. Mr. Md. Zahirul Islam, FCA
Head of Financial Administration Division & CFO Member
4. Mr. Ashraful Alam
Acting Head of Central Operations & Service Delivery Department Member
5. Mr. Md. Rashed Akter
Head of Retail Distribution Division Member
6. Mr. Mohammad Syejuddin Ahmmed
Head of Internal Control & Compliance Division Member
7. Mr. Md. Zubayed Ur Rahman
Head of Human Resources Management Division Member
8. Mr. Md. Nazmul Huda Sarkar
Head of Information Technology Division & CTO Member Secretary

ICT Security Committee

1. Mr. Md. Zahid Hossain
Deputy Managing Director & CRO Chairman
2. Mr. Mohd. Javed Tarek Khan
Head of Institutional Banking Division Member
3. Mr. Md. Rashed Akter

Head of Retail Distribution Division Member

4. Mr. Ashraful Alam
Acting Head of Central Operations & Service Delivery Department Member
5. Mr. Mohammad Syejuddin Ahmmed

Head of Internal Control & Compliance Division Member

6. Mr. Md. Nazmul Huda Sarkar

Head of Information Technology Division & CTO Member Secretary

Sustainable Finance Committee

1. Mr. Md. Zahid Hossain
Deputy Managing Director & CRO Chairman
2. Mr. Mohd. Javed Tarek Khan
Head of Institutional Banking Division Member

Management Committees
Midland Bank PLC.
37 Annual Report 2023
 3. Mr. Md. Zahirul Islam, FCA
Head of Financial Administration Division & CFO Member
4. Mr. Khondkar Towfique Hossain
Head of International Division & NRB Member
5 Mr. Md. Nazmul Huda Sarkar
Head of Information Technology Division & CTO Member
6. Mr. Md. Bajlur Rahman Khan
Acting Head of Credit Risk Management Division Member
7. Mr. A.K.M. Ashiqur Rahman
Head of Credit Administration Department Member
8. Mr. Md. Rashed Akter
Head of Retail Distribution Division Member
9. Mr. Mohammad Syejuddin Ahmmed
Head of Internal Control & Compliance Division Member
10. Mr. Md. Abed-Ur-Rahman
Head of Cards Member
11. Mr. Nakul Chandra Debnath
Head of General Services Division Member
12. Mr. Mohammed Rashadul Anwar
Head of Public Relations Division Member
13. Mr. Md. Zubayed Ur Rahman
Head of Human Resources Management Division Member
14. Mr. Md. Humayoun Kabir
AVP, Risk Management Division Member
15. Mr. Jahangir Alam
FAVP, SME Banking Member Secretary

ICT Risk Management Committee

1. Mr. Md. Zahid Hossain
Deputy Managing Director & CRO Chairman
2. Mr. Md. Zahirul Islam, FCA
Head of Financial Administration Division & CFO Member
3. Mr. Mohammad Syejuddin Ahmmed
Head of Internal Control & Compliance Division Member
4. Mr. Md. Zubayed Ur Rahman
Head of Human Resources Management Division Member
5. Mr. Md. Humayoun Kabir
AVP, Risk Management Division Member
6. Mr. Md. Nazmul Huda Sarkar
Head of Information Technology Division & CTO Member Secretary

Management Committees
Midland Bank PLC.
38 Annual Report 2023
Integrity Building Committee (IBC)
1. Mr. Md. Zahid Hossain
Deputy Managing Director & CRO Chairman & Focal Point
2. Mr. Md. Rashed Akter
Head of Retail Distribution Division Member
3. Mr. Md. Bajlur Rahman Khan
Acting Head of Credit Risk Management Division Member
4. Mr. Mohammad Syejuddin Ahmmed
Head of Internal Control & Compliance Division Member
5. Mr. Fazal Abdullah
Head of Anti Money Laundering Division Member
6. Mr. Ashraful Alam
Acting Head of Central Operations & Service Delivery Department Alternate Focal Point
7. Mr. Md. Zubayed Ur Rahman
Head of Human Resources Management Division Member Secretary

Purchase Committee (PC)

1. Mr. Md. Zahid Hossain
Deputy Managing Director & CRO Chairman
2. Mr. Md. Zahirul Islam, FCA
Head of Financial Administration Division & CFO Member
3. Mr. Md. Nazmul Huda Sarkar
Head of Information Technology Division & CTO Member
4. Mr. Md. Bajlur Rahman Khan
Acting Head of Credit Risk Management Division Member
5. Mr. Nakul Chandra Debnath
Head of General Services Division Member Secretary

Branch Expansion and Interior Decoration Committee

1. Mr. Md. Ahsan-uz Zaman
Managing Director & CEO Chairman
2. Mr. Md. Rashed Akter
Head of Retail Distribution Division Member
3. Mr. Mohammed Rashadul Anwar
Head of Public Relations Division Member
4. Mr. Nakul Chandra Debnath
Head of General Services Division Member Secretary

Management Committees
Midland Bank PLC.
39 Annual Report 2023
Innovation Committee
1. Mr. Md. Zahid Hossain

Deputy Managing Director & CRO Chairman

2. Mr. Mohd. Javed Tarek Khan

Head of Institutional Banking Division Member

3. Mr. Md. Nazmul Huda Sarkar

Head of Information Technology Division & CTO Member

4. Mr. Mohammad Syejuddin Ahmmed

Head of Internal Control & Compliance Division Member

5. Mr. Faisal Ahmed

Head of Gulshan Branch Member

6. Mr. Mostofa Maynul Hasan
Head of Banani Branch Member

7. Mr. Md. Ibrahim Khalil

Head of Uttara Branch Member

8. Mr. Mohammed Asif Raihan Chowdhury

Head of Agrabad Branch Member
9. Mr. Md. Ahsan Habib
Head of Rajshahi Branch Member
10. Mr. Md. Rashed Akter
Head of Retail Distribution Division Member Secretary

Management Committees
Midland Bank PLC.
40 Annual Report 2023
From the Desk of the Chairman
Honorable Shareholders, Colleagues and other Stakeholders, net growth compared to previous year. I must acknowledge that
Midland Bank PLC. is not amongst the best in terms of profitability.
As-salamu Alaikum,
However, in terms of governance, compliance, portfolio quality, low
With a great honor and privilege, I would like to present the Annual
NPL ratio and sustainability - it will be placed in the front-line
Report together with the relevant financial statements for the year
category.
2023 for your prudent review. At the outset, I would convey my
thanks and gratitude to all our investors and depositors for putting
The past year has been marked by global economic turbulence,
their trust and confidence on us. Our bank has achieved moderate
characterized by significant shocks and unprecedented
growth in 2023, despite volatility money market and challenging
uncertainty. The prolonged Russia-Ukraine conflict and lingering
environment for banks in many aspects. Our economy is going
effects of the pandemic have moderated global economic growth.
through a critical stage, facing a multifaceted economic landscape.
Food and energy price shocks have contributed to elevated
Although, our beloved bank achieved resilience against the odds
inflation levels worldwide, compounded by wage-price spirals.
over the years, due to conservative business approach, good
According to IMF projections, global growth is expected to bottom
governance and meticulous compliance, we are impacted by and
out at 2.8% this year before gradually rising to 3.0% in 2024.
large for the sectoral issues like contractionary monetary policy,
scarcity of foreign exchange and issues relating to some Shariah
As Bangladesh's economy advances into the latter half of Fiscal
based banks in the industry. Public confidence is very high on our
Year 2024, it is diligently working towards restoring exchange rate
bank. While we are offering moderately lower deposit rates
stability, managing inflationary pressures, and addressing the
according to market average, our deposit portfolio witnessed 7.0%
persistent challenge of high non-performing loans. Furthermore,

From the Desk of the Chairman

Midland Bank PLC.
41 Annual Report 2023
the mounting costs of essential imports and the pressure on the The evolution of MFS has expanded its scope beyond basic
nation's foreign exchange reserves compound the intricacies of transactions to encompass a comprehensive range of services,
domestic economic hurdles. At the global level, geopolitical including savings, loans, insurance, and remittances.
tensions and trade uncertainties persist, contributing to volatility in
commodity markets, which is further fueled by escalating rivalries This expansion has empowered individuals and small businesses,
among key global powers. significantly contributing to poverty reduction and economic
empowerment. BB's decision to permit individuals aged 14-18 to
We witnessed a slight acceleration of inflationary pressure to 9.41% open MFS accounts aims to integrate more users into the
by the end of December 2023 compared to the previous month, it regulated payment systems. Additionally, the collaboration
remained significantly above the desired level. Unfortunately, between MFS providers and the Universal Pension Scheme (UPS),
Bangladesh's economy failed to gain advantage from the recent charging a unified service fee of BDT 0.7 for every BDT 100 deposit,
global commodity price decline due to substantial depreciation of showcases BB's commitment to expanding financial access.
the domestic currency, thus nullifying the potential advantages of
lower international prices. Over the past decade, Bangladesh has made remarkable progress
in fostering financial inclusion through mobile financial services
Domestic commodity prices surged compared to the previous fiscal (MFS), agent, sub-branch, and branchless banking, providing formal
year, initially sparked by COVID-19 supply chain disruptions and the financial avenues to the unbanked and micro-entrepreneurs. The
Russia-Ukraine conflict. Despite global price declines in 2022, interoperability among MFS providers has significantly driven the
Bangladesh's significant deficits in the current account and overall growth of digital payments, propelling the nation's journey toward
balance of payments caused a notable depreciation of the Taka, greater financial înclusion. In line with the government's 'Smart
erasing potential benefits from lower international prices. This Bangladesh Vision, Bangladesh Bank has initiated the 'Cashless
currency depreciation led to higher import costs. contributing to Bangladesh' program to accomplish seventy-five percent cashless
inflationary pressures alongside energy price adjustments and market transactions by 2027. Initiatives like Binimoy, QR Code
imperfections. While point-to-point inflation decreased to 9.41% in transactions, Digital Bank, and TakaPay have been introduced to
December 2023, average headline inflation rose to 9.48% due to integrate the unbanked and marginalized population into the
recent months' higher rates. Food inflation outweighed non-food formal banking system.
inflation, while core inflation declined to 7.72%. Monetary indicators
showed M2 growth below projections, influenced by a decline in net Bangladesh's capital market regulatory body, the Bangladesh
foreign assets (NFA) due to an imbalance in the balance of payments. Securities Exchange Commission (BSEC), in collaboration with the
Reserve Money fell below projected levels due to negative growth in Bangladesh Bank (BB) and other relevant government entities, has
Bangladesh Bank's NFA caused by high USD demand and increased consistently spearheaded initiatives to foster a robust capital and
investments in high-return T-bills and T-bonds. bond market within the country. We are expecting to commence
the operation of Asset Management Company and Investment
As per the IMF's most recent World Economic Outlook released in company through two fully owned subsidiaries in 2024.
October 2023, the global GDP is forecasted to decline, dropping
from 3.5 percent in 2022 to 3.0 percent in 2023 and further In the context of current geo-economic and geopolitical tensions,
diminishing to 2.9 percent in 2024. It is anticipated that this the global economy is experiencing subdued growth. This
trajectory will persist below the historical average of the last two slowdown is largely attributed to aggressive monetary policies
decades. The GDP growth rate of advanced economies is expected responding to persistent inflationary pressures. Recent signs of
to decelerate from 2.6 percent in 2022 to 1.5 percent in 2023 and 1.4 inflation easing suggest that policy interest rates in major
percent in 2024. Bangladesh's external sector has struggled with economies may have reached their zenith. There is a growing
significant challenges since late FY22. These challenges have anticipation that the US Federal Reserve, the European Central
emerged from heightened pressure on the balance of payments Bank, and other central banks of major economies may soon
(BoP), declining foreign exchange reserves, noticeable currency consider reversing their rate-hiking trajectories. However, the
depreciation, and global monetary tightening. These complexities timing of such shifts remains uncertain. Similarly, Bangladesh's
have been further compounded by elevated global economic economy is grappling with significant macroeconomic headwinds,
uncertainties stemming from ongoing geo-economic tensions and including heightened inflation, diminishing foreign exchange
geopolitical conflicts. However, a significant and positive shift was reserves, and exchange rate volatility exacerbated by a burgeoning
observed in the current account balance (CAB) from July to balance of payments deficit. This situation is compounded by
October 2023. This transformation from a substantial deficit to a ongoing liquidity challenges and persistently high levels of
surplus-was primarily propelled by resilient exports, vigilant control non-performing loans. Conversely, Bangladesh stands out as one
over import prices, currency depreciation, and consistent inflows of of the world's fastest-growing economies.
remittances. Despite these encouraging advancements, an
unprecedented deficit persisted in the financial account, During 2023, the Bank registered operating profit of BDT1,743.00
contributing to an overall deficit in the BoP. million and posted net profit after tax at BDT 1,133.11 million. The

From the Desk of the Chairman

Midland Bank PLC.
42 Annual Report 2023
Bank earned distributable profit of BDT 866.34 million, up from market through Offshore Banking Unit (OBU) and earned an
BDT 310.68 million in 2022. Total deposit rose by 4.40. % to BDT amount of BDT 21.89 million as profit in the year 2023 by providing
60,302.72 million from BDT 57,763.01 million in 2022. Loans and various FCY funding facilities to the institutional customers.
advances increased by 3.92 % to BDT 54,862.66 million from BDT
52,792.81 million in 2022. However, amount of fee based income Our management and board is very cautious in terms and money
decreased from previous year due to reduced forex transaction laundering issues and always took timely measures to adopt
and it had earned BDT 816.21 million in 2023 compared to BDT preemptive measures to restrain any such attempts. Continued
834.64 million in 2022. Shareholders’ equity increased to BDT promotion of the ongoing good governance culture is one of the
9,150.66 million from BDT 7,646.54 million, with an increase of priorities of our board.
19.66%. Unlike many of our peer competitors, we were
well-capitalized, deposit funded and liquid. MDB’s capital The Bank strongly believes in creating a positive impact on society,
management framework was intended to ensure best capital through its business coupled with through its corporate social
composition in relation to business growth. Bank’s Capital to Risk responsibility (CSR) activities. Governance and stability are top
Weighted Assets Ratio (CRAR) stood at 17.28% against minimum priorities for the Board, underpinning the articulated objective of
requirement of 12.50 percent including 2.50% conservation buffer growing within the guardrails of risk and compliance. In this regard,
as per Basel III accord. Return on Assets (ROA) and Return of the Board has focused on ensuring competency and
Equity (ROE) improved from previous year and stood at 1.39% and independence to contribute objectively and responsibly towards
13.49%, respectively. In a volatile scenario of Non-Performing the Bank's progress. We ensured quality discussions, information
Loans (NPLs) in the banking industry of Bangladesh, MDB could sharing at the Board level, and transparency in the disclosures of
able to maintain its Non-Performing Loans (NPLs) in slightly over the Bank. With a commitment to the highest levels of corporate
3.81%, compared to an industry average of above 10.00%. governance, the Board continuously endeavours to strengthen
various policies and frameworks, and maintain oversight over risk
At the end of 2023, our number of branches stood at 39 (thirty nine) management, audit and compliances through various Committees.
including 20 (twenty) rural branches, 19 (nineteen) urban branches,
19 (nineteen) sub branches and 131 Agent Banking Centers covering Finally, I would like to express my sincere gratitude to all of our
strategically important locations of the country. The Bank ramified regulators specially Bangladesh Bank for their relentless guidance,
its service network by setting 65 (sixty five) ATM Booths, 10 (ten) Bill support and supervision. May Allah remain with us and shows the
Collection Centers and ensure customers access to over 2,500 path to more success in the coming days.
ATMs through Q-Cash.

The investment portfolio of “MDB Salam” reached at BDT 2,545.68

million at the end of 2023 as against BDT2,297.92 million of the last
year. An increase of 10.78% compared to last year. Deposit
portfolio also grew by 20.89% reaching at Tk. 3,569.73 million at the Nilufer Zafarullah
end of 2023. Our bank is also contributing FCY funding in the Chairman

From the Desk of the Chairman

Midland Bank PLC.
43 Annual Report 2023
 Report of the Audit Committee of the Board of Directors
Introduction with the following 3 (three) members:
The Board Audit Committee (BAC) of Midland Bank PLC. is one of
SL Name Status with Status Educa�onal
the prime sub-committees of the Board of Directors and is a vital
No. the Bank with the Qualifica�on
point for enabling effective corporate governance and establishing Commi�ee
effective oversight on the performance, quality, independence and MA
objectivity of the audit activities. The Audit Committee acts as the Mr. Nazim (University of
Independent
core administrator of the Bank for protecting and safeguarding 1. Uddin Chairman Ulster,
Director
stakeholders' interests. The Audit Committee owns the capstone Chowdhury Northern
responsibility of engaging in systematic and continuous reviews, Ireland, UK)
monitoring and evaluating organizational performance against M. Sc. (Dhaka
evolving regulatory requirements, evaluating comprehensive Mr. University),
Mohammad Post Graduate
policies, processes, and procedures, and ensuring non-negotiable 2. Director Member Diploma in
compliance with laws and regulations. The purpose of the Asif-uz
3. Director Member Accounting
Committee is to assist the Board in fulfilling its oversight Zaman (University of
responsibilities relating to Ulster, UK)
Mr. Alhaj Secondary
• The integrity of the Bank's financial statements and School
Mohammed
3. Director Member
internal control systems (including the implementation Certificate
Helal Miah Independent
and effectiveness of internal control over financial Director
reporting);
The Company Secretary acts as the Secretary of the Audit
• The performance of the internal audit activities;
Committee of the Board.
• The annual independent audit of the Bank's financial
statements, engagement with independent auditors, and
Participation of non-members:
evaluation of independent auditors' qualifications,
The Managing Director and CEO, Deputy Managing Director, Chief
independence and performance;
Financial Officer and Head of ICCD attended some of the meetings
• The compliance by the Bank concerning legal and
on a need basis.
regulatory requirements;
• The implementation and effectiveness of the Bank's
Access to the Committee
disclosure controls and procedures;
On any matter within the Committee's Charter, the Head of the
• The evaluation of enterprise risk issues and
Internal Control & Compliance Division and the Head of the Audit
• The fulfillment and discharge of other responsibilities set Independent
And Inspection Department has direct access to the Audit
out herein. Director
Committee.
The Audit Committee's role is one of oversight and monitoring, and
in carrying out this responsibility, the Committee may rely on the Roles and Responsibilities of Committee
management, the independent auditor and any adviser/s the The roles and responsibilities of BAC of MDB have been framed by
Committee might engage, provided its reliance is reasonable and considering the provisions of BRPD Circular No. 02 and 03 dated
dependable. 11th February 2024 and 14th February 2024 respectively, Corporate
Governance Notification No. BSEC/CMRRCD/2006-158/207/Admin/80
Formation issued by BSEC on June 03, 2018, and other best practices on
The Board Audit Committee (BAC) of Midland Bank PLC. was corporate governance guidelines and standards. Leading roles
formed by the Board of Directors in its 15th Meeting held on April and responsibilities of BAC of MDB are highlighted below on a
26, 2014, in compliance with Bangladesh Bank's BRPD circular broad scale:
No.11, Dated: October 27, 2013, regarding formation and responsi-
bilities of Board of Directors of a Bank Company and in line with a) Internal Control:
Bangladesh Securities and Exchange Commission (BSEC) Notifica- • Evaluate whether management is adhering to the
tion No. SEC/CMRRCD/2006-158/134/Admin/44, Dated: August appropriate compliance culture by communicating the
07, 2012, and No. SEC/CMRRCD/2006-158/147/Admin/48, Dated: importance of internal control and risk management to
July 21, 2013, on Corporate Governance. ensure that all employees have a clear understanding of
their respective roles and responsibilities.
Organizational Structure of BAC • Review the initiatives taken by the management for
The Board Audit Committee (BAC) of MDB was last reconstituted in developing and maintaining a suitable Management
the 152nd Meeting of the Board of Directors held on 31st March, 2024 Information System (MIS).

Report of the Audit Committee

Midland Bank PLC.
44 Annual Report 2023
• Consider whether internal control strategies recommended leading to this and decide whether any action is required.
by internal and external auditors have been implemented • Oversee the relationship with the external auditors,
timely by the management. including:
• Review the management's corrective measures regarding • Oversee the determination of audit fees based on
fraud-forgery reports, deficiency in internal control, or scope and magnitude, level of expertise deployed, and
other similar issues detected by internal and external time required for effective audit.
auditors and inspectors of the regulators and inform the • They were assessing their independence and
Board regularly. objectivity annually, taking into account relevant
professional and regulatory requirements and the
b) Financial Reporting relationship with the auditor as a whole, including the
• Oversee the financial reporting process and check provision of any non-audit services.
whether the Annual Financial Statements reflect concrete • Satisfying itself that there are no relationships (such as
and complete information and determine whether they are family, employment, investment, financial or business)
consistent with applicable accounting and reporting between the auditor and the Bank (other than in the
standards set by respective governing bodies and ordinary course of business).
regulatory authorities. • Meet regularly with the external auditor after the audit at
• Meet with Management and External/Statutory Auditors to the reporting stage.
review annual financial statements before their finalization. • Review the management letters or letter of control
• Monitor the choice of accounting policies and principles. weakness issued by statutory auditors and
• Review along with management, the quarterly, half-yearly, recommendations made by them for removing the
and annual financial statements before submission to the irregularities, if any, detected are duly acted upon by the
Board for approval. management in running the Bank's affairs.
• Review management's discussion and analysis before
disclosing it in the annual report. e) Compliance with existing laws and regulations
• Review statement of all related party transactions Review whether the laws and regulations framed by the
submitted by the management. regulatory authorities (Central Bank, BSEC, and other
bodies) and internal circular/instructions/policy/
c) Internal Audit regulations approved by the Board and Management have
• Monitor/ evaluate whether internal audit functions are been complied with.
conducted independently from the management.
• Review the internal audit activities and organizational f) Miscellaneous
structure and ensure that no unjustified restrictions or • Submit a compliance report to the Board of Directors
limitations are made on the internal audit process. every quarter on regularization of the omission, fraud, and
• Review and assess the annual internal audit plan and forgeries (if any), and other irregularities detected by the
approve the same. internal and external auditors and inspectors of regulatory
• Monitor Internal Audit and compliance process to ensure authorities.
that it is adequately resourced and review the efficiency • Submit the evaluation report relating to the Internal and
and effectiveness of internal audit function. External Auditor of the Bank to the Board on a need basis.
• Review that findings and recommendations made by the • Supervise other assignments delegated by the Board and
Internal Auditors for removing the irregularities, if any, evaluates their performance regularly.
detected are duly acted upon by the management in
running the affairs of the Bank. Meetings of the BAC
• Meet the Head of ICC and the head of the internal Bangladesh Bank suggested banks to hold at least four
audit/monitoring as and when necessary without meetings in a year. In the year 2023, the BAC of MDB
management being present to discuss any issues arising managed to hold 05 (Five) meetings and had detailed
from the internal audits. discussions and review sessions with the Head of Internal
Control & Compliance on issues of bank affairs that need
d) External Audit improvement. The BAC instructed management to follow
• Evaluate the performance of the external auditors and those remedial suggestions and monitored them accordingly.
their audit reports.
• Consider and make recommendations to the Board in Major areas focused by BAC in 2023 meetings
relation to the appointment, re-appointment and removal • Review the quarterly compliance status of audit reports
of the Bank's external auditor. The Committee shall conducted by internal, external and regulatory bodies.
oversee the selection process for new auditors and if an • Review the Bangladesh Bank report on cash surprise and
auditor resigns, the Committee shall investigate the issues branch/bank’s response in this regard.

Report of the Audit Committee

Midland Bank PLC.
45 Annual Report 2023
 • Review the performance of ICCD for 2023. Financial Reporting Standards (IFRS) as the accounting standard
• Review the summary of audit findings in 2023 by internal and accordingly, the financial statement clearly states the
auditors and recommend the management for compliance with GAAP, SEC, and Bangladesh Bank guidelines.
rectification and advice to take appropriate disciplinary
measures for the repeated findings of serious nature. Priorities for the year ahead
• Review the highlight of all Bangladesh Bank Inspection The Committee expects to continue to ensure they reflect the
reports and recommend the management for rectification. mitigation of evolving risks in 2024 by focusing on the integrity of
• Review all Internal Audit and Inspection reports submitted financial controls, risk governance and controls, cyber security
to the Board Audit Committee. infrastructure, digitalization, automation, customer data security,
• Review quarterly financial statements for the period ended and a true risk-based audit approach. The Committee expects its
on March 31, 2023, June 30, 2023 and September 30, 2023. internal audit standards to be more effective and efficient for
• Review of annual financial statements for the year ended identifying risks in the Bank.
31st December 2023.
• Review and confirm a) Management’s Discussion and Acknowledgments
Analysis, b) statement of all related party transactions and The MDB Board Audit Committee accords its sincere thanks and
c) Statement/Report issued by the external auditors on gratitude to the members of the Board, Management streams and
internal control weakness. Internal & External Auditors for their continuous support to make
• Review of report on Utilization of IPO proceeds for the Midland Bank a compliant Bank in its journey to banking
quarter ended 31st March 2023. excellence.
• Review of annual integrated health report–2023.
• Review the status of MDB premises related to fire safety
clearance from the competent authorities. On behalf of the Board Audit Committee,

In reviewing the Company's policies and practices with respect to

the assessment of the various Internal Audit reports, it is evident
that MDB has continued to be efficient in internal control over
financial reporting for the year ended December 31, 2023. Since
most of the computation is system-based, the possibility of Nazim Uddin Chowdhury
manipulation is almost absent. The Committee has selected Chairman
International Accounting Standards (IAS), and International Audit Committee of the Board of Directors

Report of the Audit Committee

Midland Bank PLC.
46 Annual Report 2023
Managing Director & CEO’s review
Management Discussion and Analysis

Respected Shareholders and endearing Partners, Bangladesh, were mostly related with high loan classification ratio
and lack of good governance. You will be pleased to know that our
As-salamu Alaikum. bank is in quite commendable position, maintaining as low as
3.81% classification ratio and high standard of governance culture
2023 was a year of that saw our bank achieve significant growth in a within the bank.
challenging environment that gave us the opportunity to manage risk
and reward as we maintained our record of providing steady and After the pandemic era and facing the challenges posed by
consistent return for our shareholders while enhancing the value of Russia-Ukraine war, Bangladesh economy is undergoing pressure
their investment. We continued to grow our balance sheet, albeit due to gradual decrease in foreign currency reserve. The central
moderately, ensuring high dividend payout ratio. Over the period, we bank had to take various policy measures and initiatives to reduce
managed our business efficiently taking prudent credit decisions. For pressure on the forex. As of current date, the forex reserve
the classification cases that emerged, we built adequate provisioning. managed by Bangladesh Bank is still under pressure. In this
By the Grace of the Almighty, our achievement has been quite respect, I would mention that Midland Bank is not under any forex
remarkable. It is a privilege and honour for me to be able to present loss threat, which some financial institution may suffer from. Our
highlights of our bank as per regulatory requirements, as well as our Off-Shore Banking Unit (OBU) received USD term funding from
achievements and upcoming initiatives. foreign investment funds, which we invested in US dollar in our
OBU make repayments as per terms agreed.
Last year, we saw a shift from the "new normal" back to what we used
to consider normal. The pandemic is under control now. But the Economic Environment:
choices made during the pandemic, have led to some lingering In 2023, Bangladesh’s economy continued its route of growth,
problems. This includes higher prices for commodities, which notwithstanding with the challenges stemming from both
compelled the governments around the world to slow down domestic and global factors. The global economic landscape
spending, as well as worries about banks struggling internationally remained uncertain due to various geopolitical tensions and the
and locally. However, the challenges in the banking sector of

Managing Director & CEO’s review

Midland Bank PLC.
47 Annual Report 2023
lingering effects of the COVID-19 pandemic. Despite these introducing many automation projects in the banking sector. Last
challenges, Bangladesh persevered, supported by prudent fiscal year, we took part in the initiative along with nine other publicly
and monetary policies, resilient export performance and listed commercial banks, to establish a Digital Bank under the
remittance inflows. name of “Digi10 Bank PLC.” However, Bangladesh Bank, while
issuing digital banking license guided to conduct digital banking
As per the IMF's most recent World Economic Outlook released in through a ‘Digital Banking Window’ under existing banking license.
October 2023, the global GDP is forecast to decline, dropping from We have invested, over the years, in developing IT infrastructure
3.5 percent in 2022 to 3.0 percent in 2023 and further diminishing to and transformed the bank to act as a digital bank. Insha’Allah, our
2.9 percent in 2024. It is anticipated that this trajectory will persist continuous investment in IT infrastructure and human capital will
below the historical average of the last two decades. The GDP pay-off in the coming days. The introduction of the Digital Banking
growth rate of advanced economies is expected to decelerate from Window by Midland Bank PLC. is expected to return several
2.6 percent in 2022 to 1.5 percent in 2023 and 1.4 percent in 2024. positive outcomes. Firstly, customers will experience enhanced
convenience and flexibility in conducting their banking
Bangladesh's economy has showcased robust resilience and transactions. With this new digital segment, they can perform
impressive growth in recent years, achieving a real GDP growth of various banking activities remotely at their convenience, without
6.94 percent in FY21 and 7.10 percent in FY22. This growth the need to visit a physical branch. Moreover, the Digital Banking
trajectory was underpinned by strong internal and external Window is likely to streamline and simplify the banking process for
demand, complemented by growth-supportive monetary and fiscal customers. They can easily access their accounts, transfer funds,
policies. The post-pandemic recovery saw substantial progress, pay bills, and perform other transactions through user-friendly
notably in the industrial and service sectors. In contrast, the digital platforms such as mobile apps or ‘midland online’ our robust
agriculture sector made significant contributions with increased internet banking application. This streamlined approach reduces
production, buoyed by favorable weather conditions and the time and effort required for traditional banking tasks, making
successful crop harvests. However, according to provisional the overall experience smoother and more efficient for customers.
estimates by Bangladesh Bureau of Statistics (BBS), the growth Additionally, the Digital Banking Window may also lead to
momentum slightly tapered off to 6.11 percent in FY23. This was improved customer satisfaction. By providing innovative digital
amidst domestic price levels outpacing wage growth and solutions that cater to the evolving needs of customers, MDB can
persistent depreciation pressure on the Bangladesh Taka (BDT). enhance its reputation as a customer-centric bank committed to
delivering high-quality services. Overall, the introduction of the
Despite recent moderation in global commodity prices and Digital Banking Window by MDB is expected to result in increased
stabilization in Russia-Ukraine war-related supply chain convenience, efficiency, and satisfaction for customers, thereby
disruptions, concerns persist regarding price stability. Ongoing strengthening the bank's position in the market and fostering
monetary tightening in major economies, coupled with global long-term customer loyalty.
uncertainties and slower growth prospects, pose challenges to the
global economic recovery. However, Bangladesh's economy Business Strategy:
anticipates support from resilient domestic demand, steady growth MDB continued to navigate the evolving banking landscape with a
in Ready-Made Garments (RMG) exports, and consistent inflows of strategic focus on digitalization, customer-centricity, and prudent
remittances from wage earners, bolstering its growth outlook. risk management. Our investments in IT infrastructure and digital
Projections suggest that the economy is poised to maintain a platforms enabled us to adapt swiftly to the changing market
robust growth rate of around 6.5 percent in FY24, supported by dynamics, positioning us well to capitalize on emerging
both domestic and international agencies' forecasts alongside opportunities.
Bangladesh Bank’s in-house assessments.
In terms of liquidity management, MDB maintained a prudent
The country's economic resilience was further demonstrated by approach, avoiding over-reliance on short-term high-cost deposits.
sustained activities across sectors such as agriculture, industry and Instead, we focused on consolidating our deposit portfolio, resulting
services. Despite inflationary pressures, both domestic and in a favourable deposit mix and improved liquidity position. Our
external demand showed signs of recovery, reflecting the asset portfolio witnessed steady growth, underpinned by selective
underlying strength of the economy. credit disbursal and a customer-centric business model.

Banking Environment: Despite the challenges posed in the economy, MDB achieved
In today's world, technology is like the air we breathe—it's commendable financial results in 2023. The deposit portfolio of our
everywhere and essential to how we live each day. Commercial bank has further grew by Tk.2,539.71 million, with an increase in the
banks, realizing just how crucial it is to keep up with the digital low-cost deposits from 25% to 26% by the end on 2023. As per our
wave, are diving headfirst into incorporating these technological steady growth approach, the asset portfolio of the bank grew by
marvels. Recognizing the paramount importance of embracing 4.46%, as we made credible and prudent credit judgement since
digital advancements, Commercial banks are eagerly integrating beginning. As we are very selective in choosing asset customers,
these technologies to elevate customer experiences and our highest effort and focus is continuing to maximize the
guarantee satisfaction. The big changes from COVID-19 have non-interest and non-funded business.
made digital banking grow even faster. It's showing how much
digital banking can do and how much it can grow in the future. During 2023, our retail customer relationships increased by 6.95%,
Banking sector experienced remarkable progress in respect of reaching BDT 22,770.90 million by December 2023. The digital
automation in functioning in last several years. As a developing banking customers of our Bank, which increased manyfold during
economy Bangladesh has encouraged to develop its banking the pandemic, is the future base of our retail customers.
industry to promote economic growth. Over the last three decades
or so, the country has seen spectacular expansion of the banking In terms of profitability, we did better during the pandemic,
industry. Bangladesh Bank has been leading the charge by registering an operating profit of BDT 1,743.00 million and earning

Managing Director & CEO’s review

Midland Bank PLC.
48 Annual Report 2023
a Net Profit after tax of BDT 1,133.11 million. MDB Off-shore Banking Disclosures Relating to Corporate Governance Code:
Unit (OBU) generated a gross profit of BDT 21.89 million. The Islami The financial statements of the bank have been prepared as per
Banking window, MDB Saalam also generated gross profit of BDT applicable accounting policies and estimation for preparation of
18.57 million and I feel grateful for the blessings of Almighty Allah financial statements. The External Auditors, Hoda Vasi Chowdhury
for giving us the opportunity to serve the people through our & Co., appointed by the shareholders, conducted auditing of the
Shariah banking services. Our wise and prudent Sharia Supervisory financial statements of the bank and provided their independent
Council guides the management with their wisdom and in-depth opinion that the financial statements for the financial year 2023
knowledge in Shariah law in formulating a range of Deposit and were prepared in accordance with applicable rules and regulations
Investment product guidelines. following the international accounting standards that the same
reflected the true and fair view of the financials of the Bank. The
By the end of 2023, the number of Branches reached 39, amongst financial statements also report any changes in accounting policies
which 19 are urban and 20 are rural. Our Sub-branch network and estimation, if any, and clearly describing the effect on financial
reached 19. Agent Banking Centres (ABC) increased to 131 by the end performance or results and financial position as well as cash flows
of 2023. Number of customers reached 230,373 at the end of 2023. in absolute figure for such changes. A comparative analysis
We have plan to further expand our service network throughout the (including effects of inflation) of financial performance or results
country by opening of Sub-branches and ABCs in 2024. and financial position as well as cash flows for current financial
year with immediate preceding five year’s explaining reasons
Performance: thereof mentioned in page no. 14 and 15 of the annual report in
As a bank our performance has been consistent across business separate segment. Comparison of such financial performance or
cycles. We have grown our balance sheet and net profit while results and financial position as well as cash flows with the peer
maintaining our asset quality. I am pleased to state that the bank’s industry scenario also discussed in applicable cases. Brief
performance continued to be robust during FY 2023 with sustained explanation of the financial and economic scenario of the country
growth across the retail, commercial and rural banking segments. and the globe also discussed above. Risks and concerns issues
related to the financial statements explaining such risks and
We managed to close the year 2023 with an operating profit of concerns mitigation plan of the bank also depicted the CRO
BDT 1,743.00 million, compared to BDT 1,526.73 million in 2022 statement in separate segment. Future plan, projection or forecast
indicating the strength in our business franchise. However, the net for bank’s operation, performance and financial position also
profit after tax stood at BDT 1,133.11 million, compared to BDT explained in detailed in the director’s report.
561.97 million in 2022, i.e. 101.63% positive growth over 2022. Total
assets of the Bank stood at BDT 83,425.87 million up by 4.46% Pleased to Acknowledge:
year-on-year. The Bank’s loan portfolio and deposits maintained a I thank our internal and external stakeholders for their continued
balanced growth of 3.92% and 4.40% respectively, supported by a support and faith in our strategy, the chosen areas of
customer centric business model. At the close of the year, our distinctiveness and our relentless approach to execution
loans and advances were BDT 54,862.66 million underpinned by excellence. Looking ahead, MDB remains focused on enhancing
our client acquisition strategy. Our credit lines comprise mostly of operational efficiency, expanding our service network, and driving
corporate portfolio, SME lending and retail loans. Despite the digital innovation. Our Shariah-compliant banking window, MDB
alarming increase of NPL rate throughout the banking sector, we Saalam, continues to gain traction, reflecting the growing demand
were able to maintain the NPL ratio at 3.81% compared to 2.78% of for Islamic financial products and services. We are grateful for the
the previous year. guidance and support of our Shariah Supervisory Council in
ensuring compliance with Shariah principles. I extend my heartfelt
The Advance to Deposit ratio was maintained at 84.51% at the gratitude to our esteemed Board of Directors, dedicated
year-end, while CASA contribution to total deposit was 28%, employees, valued customers, regulatory authorities, and external
enabling the Bank to gain a competitive margin. Continuous focus partners for their unwavering support and commitment. Together,
on streamlining operations resulted in an improved cost to income we have navigated through challenges and achieved significant
ratio of 45.39% consolidating our bottom line. The key financial milestones, reaffirming MDB's position as a leading player in
heath indicators reflect a sound position with Capital to Risk Bangladesh's banking sector.
Weighted Assets Ratio (CRAR) of 17.28% at the close of 2023,
against regulatory requirement of 12.50 percent including 2.50% In conclusion, I express my gratitude to the Almighty for His
capital conservation buffer as per Basel III standard. blessings and guidance throughout our journey. May He grant us
wisdom, strength, and perseverance as we continue to serve our
We have realized a quasi-cash collateral through DSE against a clients, stakeholders, and the nation at large.
classified loan account following rigorous compliance and
regulatory procedure, which shows our commitment and
dedication to maintain our asset portfolio clean and maintaining
the financial health of the bank. Sincerely,

In the eleven years of operation, MDB has gained resilience to

absorb any sudden shock of deposit outflow by huge improvement
in the deposit mix and also withstand NPL shock by keeping
provisions at required level. At present, 38.61% of total deposit
consists of retail deposits including CASA and aggregate retail, CASA Md. Ahsan-uz Zaman
and other small deposits constitute 28% of our total deposit base. Managing Director & CEO

Managing Director & CEO’s review

Midland Bank PLC.
49 Annual Report 2023
Directors’ Report
 Directors’ Report
Dear Stakeholders,
credit standards could prove stronger than anticipated, leading to
The Board of Directors welcome you all in the 11th Annual General
a more severe slowdown in spending, rising unemployment and
Meeting (AGM) of the Bank. It is a privileged pleasure for me to
higher bankruptcies. Tighter-than-expected global financial
present the annual report along with all relevant financial
conditions would also intensify financial vulnerabilities, including in
statements for the year ended on December 31, 2023. In this report,
emerging-market and developing economies, and add to
we have endeavored to give highlights of the global economy
debt-servicing pressures in lower-income countries. On the upside,
along with how we experienced the swings on our domestic
the global economy and financial markets have so far proved
economic frontier.
relatively resilient to the tightening of monetary policy, and inflation
could return to target without a marked growth slowdown or a
Global Economy 2023
sharp rise in unemployment. A continuation of this pattern would
The global economy continues to confront the challenges of
imply better-than-expected growth in 2024 while inflation eases.
persistent inflation and subdued growth prospects. GDP growth
Growth would also be stronger if households were willing to spend
has been stronger than expected so far in 2023, but is now
excess savings accumulated during the pandemic, but inflation
moderating as the impact of tighter financial conditions, weak
persistence might also be prolonged.
trade growth and lower business and consumer confidence is
[Source: OECD Economic Outlook, Volume 2023 Issue 2]
increasingly felt. Financial conditions are restrictive, with
forward-looking real interest rates having generally risen further in
recent months. Activity has slowed in interest-sensitive sectors, Macroeconomic Situation: Bangladesh Context
particularly housing markets, and in economies reliant on Bangladesh's post pandemic recovery faces continued headwinds.
bank-based finance, especially in Europe. Heightened geopolitical Real GDP growth slowed to 5.80%in FY23, down from 710% in the
tensions are also again adding to uncertainty about the near-term previous year. The introduction of a multiple exchange rate regime
outlook. Headline inflation has fallen in almost all economies, in September 2022 disincentivised foreign exchange inflows,
easing pressures on household incomes, but core inflation remains leading to a financial account deficit.
relatively high.
Executive Summary
Global GDP growth is projected to ease to 2.70% in 2024, from This paper briefly presents the macroeconomic trends of
2.90% this year, before edging up to 3.00% in 2025 as real income Bangladesh since the 1970s. The analyses presented in the paper
growth recovers and policy interest rates start to be lowered. A provide first hand information about the potentials as well as the
growing divergence across economies is expected to persist in the constraints and challenges for the economy. The macroeconomic
near term, with growth in the emerging-market economies generally fundamentals are as follows:
holding up better than in the advanced economies, and growth in
Europe being relatively subdued compared to that in North America Real Sector
and the major Asian economies. Annual consumer price inflation in  The GDP growth rate of Bangladesh started picking up
the G20 economies is projected to continue easing gradually as since the 1990s and over the last 5 (five) years has
cost pressures moderate, declining to 5.80% and 3.80% in 2024 and maintained a growth rate of around 6%. It is recognized
2025 respectively, from 6.20% in 2023. By 2025, inflation is that the economy has the potential to grow at an even
projected to be back on target in most major economies. higher growth rate if the growth constraints such as poor
governance, rampant corruption, infrastructure bottlenecks,
Risks to the near-term global outlook remain tilted to the underdeveloped financial markets and failure to attract
downside. Heightened geopolitical tensions due to the conflict of FDI are removed.
Israel and Hamas are a key near-term concern, particularly if the  Over time, there has been structural transformation in the
conflict were to broaden. This could result in significant disruptions economy with a shift from predominantly agriculture-led
to energy markets and major trade routes, and additional risk economy towards industry-led economy; the contribution
repricing in financial markets, that would slow growth and add to of agricultural sector to GDP was 38% in early 70s but
inflation. Headwinds from rising trade restrictions, inward-looking declined to 21% in 2007-08, while the contribution of
policies and the restructuring of global value chains are also industrial sector increased from 15% to 30% during the
contributing to the uncertain outlook for global trade, which is a same period of time.
key concern given the importance of trade for productivity and  Investment remained stagnated until the 1980s but started
development. Continuing cost pressures, renewed rises in energy picking up since early 1990s, mainly attributable to the
and food prices, or signs of an upward drift in inflation expectations openness of economy and the introduction of a liberal
could compel central banks to keep policy rates higher for longer policy environment; creating increased opportunities for
than expected, potentially generating additional stress in financial private investment. The investment-to-GDP ratio during
markets. Conversely, the impact of higher interest rates and tighter 2006-2008 period stood at around 24% of GDP, but it

Directors’ Report
Midland Bank PLC.
51 Annual Report 2023
 should in the neighbourhood of 30% in order for the programmes increased from 8.4% to 16.9% of total budget
economy to reach two-digit growth trajectory. during 2004-05 to 2008-09.
 About 75% of the population lives in rural areas, out of
which 44% live below the poverty line. Therefore, Monetary and Financial Sector
investment in agriculture and rural economy needs to be  Financial deepening measured by the ratio of broad
high on the development agenda. money to GDP increased steadily from 11.5% in 1973-74 to
 The policy biases in the distribution of public resources 46% in 2007-08 implying that the economy is being
have created disparity between the eastern and the increasingly monetized.
western regions of the country. Appropriate policy  Private sector credit as percent of GDP grew to 35% in
intervention is needed to correct the imbalance. 2007-08 compared to only about 3% in 1973-74.
 During the last three years, the national savings grew to  The share of private sector credit to total domestic credit
28.6% on an average. The mobilisation of domestic increased from 24% in 1973-74 to 74% in 2007-08.
resources and the transforming of national savings into  Time deposit increased from 40% to 76% from 1973-74 to
investible surplus are critical for the continued growth of 2007-08.
the economy.  Market Capitalization of all shares and debentures listed in
 The inflation for the first time touched double-digit in the Dhaka Stock Exchange stood at 14.6% of GDP by June
2007-08 mainly due to supply shocks arising from 2008 compared to 8.7% of GDP at June 2007.
substantial increases in the international prices of fuel,
fertilizer and food items as well as natural calamities Development of Government Bond Market
caused by cyclone SIDR and floods. However, in the recent Government has initiated reforms in the area of Debt Management
months the inflation rate has come down and in since 2005. It has enacted the Bangladesh Government Treasury
December '08 it stood at 6.03% on point to point basis. Bonds (BGTB) Rules, 2003 under which treasury bonds are being
marketed on a regular basis. Development of a primary market for
Fiscal Sector buying and selling of government bonds of varying maturity (5
 Over time, the average Revenue-to-GDP ratio improved years, 10-year, 15-year and 20-year) to raise funds from the
gradually and increasing to 10.8% during the 2006-2008 domestic market is one of the significant achievements of these
period from 7.5% in 1973-1980 period. However, the reform initiatives.
Revenue-to-GDP ratio of Bangladesh still remains one of
the lowest in the world and even lower compared to that External Sector
of Nepal.  Average export growth increased to around 18% in the
 There have been structural changes in the revenue 2006-2008 period from 7% in 1981-1985 period.
structure replacing pre-dominance on customs duties by  In the total export basket, RMG accounts for 76%, Frozen
income taxes and VAT. Food 4%, Jute and Jute Goods 3%, Leather and Leather
 As a percent of GDP, public expenditures increased from Goods 2% and others 15%.
about 10% in 1972-73 to a peak of about 18% in 1999-00.  The import items include capital machinery (36%) and
The ratio declined to 13% in 2003-04 and remained under major primary goods (17%).
14% to 2006-07. In 2007-08, it increased to 16%. The  Remittances from expatriate Bangladeshi workers stood at
expenditure-to-GDP ratio in Bangladesh lags behind US$ 7.9 billion in 2007-08 reflecting 32.4% increase over
compared to other developing countries, as in the case for the previous year representing about 10% of GDP.
the revenue-to-GDP ratio.  FDI as percent of GDP shows a decreasing trend and
 Over the years, expenditure on subsidies and current stood at 7% during 2007-08.
transfers, pay and allowances, interest payments and  Foreign Exchange Reserve stood at US$ 5.6 billion as on
goods and services has increased gradually. However, the February 3, 2009.
rate of increase in expenditure on subsidies and current
transfers, interest payments and goods and services is Recent Global Financial Crisis: Bangladesh Context
much higher than others particularly from 2005-06 The global financial crisis triggered by US subprime mortgage
onwards. debacle in 2007 severely affected the world economy putting it
 Over the years, the share of subsidy among different into a recession. The possible areas that could affect the economy
sectors/areas have changed significantly, with increased of Bangladesh include exports, remittances and foreign
focus in the area of fertilizer. investment. The real impact is however, not visible at this stage.
 The fiscal deficit has remained within a tolerable limit. In The degree of such impact will depend on how deep and
2007-08, the budget deficit stood at 4.9% of GDP prolonged the recession is.
including BPC liabilities and 3.5% of GDP excluding BPC
liabilities. Challenges and Policy Responses
 The budget allocation for the social safety net In order to face the identified challenges, the new government

Directors’ Report
Midland Bank PLC.
52 Annual Report 2023
needs to come up with a set of appropriate policy interventions.  Restructure government institutions to support ongoing
The challenges identified and the suggested policy responses are reform agenda.
categorized in three groups:  Establish venture capital through Public-Private
1. Immediate challenges and policy responses Partnership (PPP) to promote IT sector to realize the vision
2. Short and mid-term challenges and policy responses of Digital Bangladesh.
3. Long-term challenges and policy responses  Manage the risks of climate change.
 Expand communication network particularly railways and
Immediate Challenges and Policy Responses water ways.
 Ensure effective market monitoring, removal of market  Develop comprehensive land use and land management
barriers for key essential commodities. policy including planned township.
 Rationalize and prioritize projects and maximize ADP  Explore natural gas and increase its supply.
implementation.  Reduce regional disparity
 Operationalise Agricultural Endowment Fund and Climate [Source: Ministry of Finance, Finance Division, https://mof.portal.gov.bd,
Change Fund. executive summary]
 Increase domestic revenue mobilization through the
expansion of tax-net. REVIEW OF BUSINESS
 Expedite recent initiatives for power generation. Principal activities of the Bank:
 Boost up energy sector through Public-Private Partnership The principal activities of the Bank are to provide wide range of
(PPP). financial products (loans and deposits) and services that includes
 Diversify exports in terms of both regions and items. all kinds of Conventional and Islamic banking services to its
 Ensure smooth supply of fertilizer at a reasonable price. customers. It offers commercial banking, consumer banking, trade
 Ensure food security. services, cash management, treasury, cottage micro small and
 Expedite implementation of the 100 days Employment medium enterprises (CMSMEs), retail, debit/credit cards services
Generation Scheme. and clearing services to its customers. These activities are
 Ensure early implementation of ongoing reform programs conducted through its Branches, Sub- branches, Agent Banking
in Public Financial Management, Insurance Sector, Centres (ABCs), Collection Booths and Alternative Delivery
Financial sector and other relevant areas. Channels (ATM booths, Internet Banking, Debit/Credit/Prepaid
 Expand credit support to SME, IT, Agriculture and rural Cards, etc.) across the country. MDB digital banking service is the
economy. Bank’s flagship product to provide internet based banking
 Check any sort of manipulation in the capital markets. solutions. MDB online banking facilities like-fund transfer to utility
 Ensure proper utilization of IT Equity Fund. bills payment, buying air tickets, paying bills of mobile phones,
credit cards, and insurance premiums and then tracking of
Short and Medium-term Challenges and Policy accounts and even shopping from over 200 retailers. MDB digital
Responses banking service is integrated with bkash, Rocket, Nagad and Upay
 Minimise the losses of and subsidies to SOEs. payment system as well. The Bank also provides Off-shore banking
 Maintain a tolerable limit of budget deficit. services through its Off-shore Banking Unit (OBU) and Islami
 Maintain stability in the financial markets. banking services through its Islamic Banking Window (MDB
 Ensure proper policy intervention in terms of resource
Saalam).
allocation to mitigate regional disparity, especially
modernization of Mongla Port to utilize its full potential. Strategic Plan:
The strategic primacies and actions plan of the Bank are
 Improve quality of education both at secondary and
summarized below:
tertiary level.
 Diversify the credit portfolio into Corporate, MSME,
 Establish a Skill Development Foundation to provide Emerging Corporate & Special Program (EC&SP), Retail
training to enhance the skill base of the prospective Business, Agriculture, Trade Financing, Project Financing
expatriate workers. and organizing Syndication deals.
 Strengthen Bangladesh Bureau of Statistics (BBS) to  Improve Deposit mix by increasing low cost & no-cost
enhance its capacity to provide real sector data. Deposits in total Deposits.
 Widen the coverage of Medium Term Budget Framework  Increase the Non-Funded Business and Non-Funded
(MTBF) to all ministries/ divisions income (Commission, Exchanges & Fee based income).
 Maintain adequate level of liquidity by minimizing
Long-term Challenges and Policy Responses Asset-Liability mismatch.
 Ensure good governance to accelerate economic growth.  Increase inward remittance through expansion of domestic
 Restructure civil service to ensure a well-balanced ratio of networks for the beneficiaries through strategic alliances
officers and staff within the government. and introducing new products to attract NRB customers.

Directors’ Report
Midland Bank PLC.
53 Annual Report 2023
  Extend banking services to un-banked and under banked people for inclusive growth.
 Improve IT infrastructures for developing new IT based products and services.
 Maintain strong capital base and strengthen Internal Capital Adequacy Assessment Process (ICAAP) by
accelerating borrowers’ rating and concentrating on lending portfolio having lower capital charge.
 Improve human resources management system to motivate and retain the workforce and transform into human assets through
appropriate and extensive training and learning culture.
 Strengthen internal control & compliance and monitoring thereon.
 Introduce in-depth research for developing brand strategy to create an optimum brand value.
 Control of cost at every level of operations by ensuring budgetary goal.
 Improve internal governance through strengthening good corporate cultures, motivation, training and supervision
as per KPIs in all level of management.
 Expand CSR related activities and ensure the green banking activities.

The Bank has been working by giving emphasis on the above strategic priorities and lots of developments have also been taken place in
this regard.

Branch Network:
Midland Bank PLC. commenced its business on 20 June 2013. The first branch was opened at Dilkusha commercial area in the name and
style “Dilkusha Corporate Branch” on the inauguration day of the Bank. At the end of 2023, the number of branches stood at 39 (19 Urban
and 20 Rural), 19 Sub Branches, 65 ATMs, 127 Agent Banking Centres (ABCs) and 9 Bill Collection Booths covering commercially important
locations across the country. The Management foresees to open another 1 Urban Branch, 1 Rural Branch, 10 Sub-Branches, 50 Agent
Banking Centres in the coming year 2024.

Islami Banking Window (MDB Saalam)

The Bank obtained permission for two (2) Islami Banking Windows (IBW) from Bangladesh Bank. Islami banking windows (MDB Saalam)
after getting approval from Bangladesh Bank was launched on 23 April 2020. The Bank is operating its Islami banking under one window
in Gulshan Branch, Dhaka. Through the IBW, the Bank extends all types of Islamic shariah compliant finances like lease, hire purchase
shirkatul melk (HPSM), bai muazzal, household scheme, etc. and different types of deposits like mudaraba/manarah savings deposits,
mudaraba/manarah term deposits, al-wadeeah current deposits, monthly/quarterly profit paying scheme, etc. Separate financial
statements of Islamic banking windows are shown in Annexures G.

Off-Shore Banking Unit (OBU):

Off-Shore Banking Unit (OBU) after getting approval from Bangladesh Bank launched its operation on 20 June 2020. It is a separate
business unit of the Bank, operating its business through a separate counter at Head Office, as governed under the rules and guidelines
vide Bangladesh Bank's letter reference no. BRPD (P 3) 744 (101)/2010-4129 dated 10 November 2009 and a Policy for Off-shore banking
operation issued by Bangladesh Bank through BRPD circular no. 02 dated 25 February 2019 and BRPD circular letter no. 09 dated 27 May
2019. It gives loans (on and off-balance sheet exposures) and takes deposits in freely convertible foreign currencies to and from
person/institution not resident in Bangladesh and Type-A (wholly foreign owned) units in EPZs of Bangladesh. It also gives long term loans
to industrial units outside EPZs and Type-B and Type-C industrial units within the EPZs subject to compliance by the industrial units with
the guidelines of Bangladesh Investment Development Authority (BIDA) and Bangladesh Bank. Besides, this unit provides bill
discounting/financing facilities accepted by Authorised Dealer (AD) in Bangladesh against usance LCs in accordance with Bangladesh
Bank (BB) guidelines. Separate financial statements of Off-shore banking unit have been disclosed in Annexures H.

Capital Strength (Capital to Risk Weighted Assets Ratio-CRAR):

We firmly believe that capital base of the Bank is our utmost strength. This is the first time ever in Bangladesh all the 4th Generation Banks
commenced its commercial operation with huge initial paid-up capital of BDT 4,000 million. Apart from the paid-up capital, we were able
to enlarge the shareholders’ equity of the Bank to BDT 9,150.66 million at the end of 2023 from BDT 7,646.54 million in 2022. The Capital
to Risk Weighted Assets of the Bank reached to BDT 53,122.65 million in 2023 from BDT 55,257.43 million in 2022. As a result, Capital to
Risk Weighted Assets Ratio (CRAR) reported to 17.28% in 2023, against regulatory requirement of 12.50% under Basel-III regime including
2.50% capital buffer.

The following table represents the Tier-1 capital (core capital) and Tier-2 (supplementary capital) of the Bank as per Basel-III Capital
Accord.

Directors’ Report
Midland Bank PLC.
54 Annual Report 2023
Core Capital (Tier- I)

In BDT Million % of Growth in

Particulars
2023 over 2022
December 2023 December 2022

Paid-up Capital 6,396.70 5,696.70 12.29%

Statutory Reserve 1,881.77 1,626.33 15.71%

Retained Earnings 868.86 322.35 169.54%

Intangible Assets (52.20) (14.78) 253.18%

Deferred Tax adjustment (516.13) - 100.00%

Sub -Total (A) 8,579.00 7,630.60 12.43%

Tier-I Capital
2023 2022
6,396.70

5,696.70

1,881.77

1,626.33

868.86

322.36
Paid up Capital Statutory Reserve Retained Earnings

Supplementary Capital (Tier- II)

In BDT Million % of Growth in

Particulars 2023 over 2022
December 2023 December 2022
General Provision 599.36 565.40 6.01%
Securities Revaluation Reserve - - 0.00%

Sub -Total (B) 599.36 565.40 6.01%

Total (A+B) 9,178.36 8,196.00 11.99%

Capital to Risk Weighted Assets Ratio (CRAR)

In BDT Million % of Growth in
Particulars
December 2023 December 2022 2023 over 2022

Total Risk Weighted Assets 53,122.65 55,257.43 -3.86%

Tier -I (Core) Capital Ratio 16 .15% 13.81% 2.34 %

Tier -II (Supplementary) Capital Ratio 1.13% 1.02% 0. 11 %

Capital to Risk Weighted Asset Ratio 17.28% 14.83% 2.45 %

(CRAR) Minimum Requirement is 12.50%

Directors’ Report
Midland Bank PLC.
55 Annual Report 2023
 Tier-II Capital
2023 2022

53,122.65

55,257.43

8,579.00

7,630.60

599.36

565.39
Risk Weighted Assets Tier-1 Capital Tier-2 Capital

FINANCIAL PERFORMANCE OF MDB

BALANCE SHEET
In BDT Million % of Growth in
Particulars
December 2023 December 2022 2023 over 2022

Cash and Bank Balances 6,321.34 6,183.39 2.23%

Investments 17,380.10 16,905.79 2.81%

Loans & Advances 54,862.66 52,792.81 3.92%

Fixed Assets 610.75 574.67 6.28%

Other Assets 4,238.43 3,397.62 24.75%

Non-banking Assets 12.59 12.59 0.00%

Total Assets 83,425.87 79,866.87 4.46%

Borrowings from other Banks, Financial
6,317.17 8,243.23 -23.37%
Institutes and Agents
Deposits and Other Accounts 60,302.72 57,763.01 4.40%

Other Liabilities 7,655.32 6,214.09 23.19%

Capital/Shareholders’ Equity 9,150.66 7,646.54 19.67%

Total Liabilities 83,425.87 79,866.87 4.46%

Assets
Total Assets of the Bank stood at BDT 83,425.87 million in 2023 compared to BDT 79,866.87 million in 2022, i.e., growth up by 4.46% over
2022. During the year 2023, Loans & Advances growth was 3.92% and Investment in Govt. Treasury bills/bonds and others increased by
2.81% over the previous year 2022. Fixed assets increased by 6.28% over 2022, due to remarkable amount of fixed assets were procured
during the reporting year. The flow in assets was evident in the increase of Loans and Advances, fixed assets and liquid assets as
maintained by the Bank.

On the other hand, the growth of deposits was at 4.40% and shareholders’ equity grew by 19.67 over 2022. The growth of deposit was
used for funding credit growth, as well as holding of securities for CRR and SLR purpose with Bangladesh Bank in accordance with
Bangladesh Bank guideline. Shareholders’ equity increased remarkable because of BDT 700 million capital was injected through Initial
Public Offering (IPO), as well as retained earnings also increased during the year.

Directors’ Report
Midland Bank PLC.
56 Annual Report 2023
 Asset Mix
2023 2022

54,862.66

52,792.81
16,905.79
17,380.11
3,494.97

4,238.43
3,793.33

3,397.62
2,568.43
1,998.11

529.90

120.00

574.67
610.75

12.59

12.59
Cash Bank Balance Money at Call and Investments Loans and Fixed Asset Other Asset Non-Banking
Short Notice Advances/Investments Asset

 Cash in hand
Cash in hand balance stood at BDT 3,793.33 million in 2023 compared to BDT 3,494.97 million in 2022, i.e., 8.54% growth over 2022.
 Balance with other Banks, Financial Institutions and its Agents
The aggregate position of cash at Banks and NBFIs, including call money was BDT 1,998.11 million in 2023, compared to BDT
2,568.43 million in 2022, i.e., 22.20% behind from 2022, due to encashment of matured placement fund with other Banks and NBFIs
for keeping ADR and wholesale borrowing limit in line with regulatory guideline.
 Investments
During the year ended on December 31, 2023, the investment increased by 2.81% to BDT 17,380.10 million in 2023 from BDT
16,905.79 million in 2022. Bank’s investment comprises of government securities of BDT 13,889.64 million and others investment of
BDT 3,490.46 million (investment in debenture, corporate bond, etc.). Investment in government securities increased by BDT 474.31
million over 2022, due to fresh investment in Treasury bills/bonds during the year.
 Loans and Advances
Loans and Advances stood at BDT 54,862.66 million in 2023 compared to BDT 52,792.81 million in 2022, i.e. representing a growth up
by 3.92% year-on-year basis. Yield on loans and advances increased to 8.34% in 2023 from 7.47% in 2022, due to rise in lending rate
during the year. Non-performing Loans (NPLs) increased to BDT 2,091.60 million in 2023 from BDT 1,469.70 million in 2022, i.e., NPL
ratio increased to 3.81% in 2023 from 2.78% in 2022, due to three major Institutional Banking Loans were classified during the year.

Concentration of loans and advances was well diversified details of which are explained in the financial statements (note # 07).
Strategic focus on no-compromise with asset quality from the onset of our journey has been pursued in every standard of credit
management. Based on contractual maturity terms 53.54% of the current loan portfolio will be matured less than one year, 27.24%
will be matured more than one year, but less than 5 years and rest 19.22% will be matured more than 5 years (note # 7.04). Bank’s
Advance to Deposit Ratio (ADR) at the end of 2023 increased to 84.51% from 81.64% in 2022, marking an efficient mobilization of fund
and equity in the most liquid banking industry in Bangladesh during the reporting period within the guideline of Bangladesh Bank.

25,000 21,545 Product Wise Loan

2023 2022
20,000
11,742

15,000 8,679

10,000

1,993 2,630 2,267 3,484

5,000 1,478 802 45 108 90

Directors’ Report
Midland Bank PLC.
57 Annual Report 2023
 Fixed Assets and Other Assets
The aggregate amount of written down value of fixed assets of the Bank stood at BDT 610.75 million in 2023, compared to BDT 574.67
million in 2022 (note # 8), demonstrating growth of 6.28%, due to procured/amortization of assets during the reporting year. On the
other hand, other assets comprise of advance income tax, advance office rent, accrued interest on investment, etc., amounted to BDT
4,238.43 million in 2023, compared to BDT 3,397.62 million in 2022 (note # 9B), showing grew up by 24.75% over 2022.

 Non-Banking Assets
Non-banking assets are acquired on account of failure of a borrower to repay the loan on time after receiving the decree from the
honorable court regarding the right and title of the mortgage property. MDB filed an Artha Rin suit bearing # 539/2017, dated
02.03.2017 against one default customer, A/C: Al-Fahad Air Ticketing and Medical Tourism Limited. The Bank has been awarded the
ownership of the mortgage properties according to the verdict of the honorable court in accordance with section 33(5) of “Artha Rin
Adalat-2003”. The honorable court also orders to charge unapplied interest until full recovery of the loan by selling the mentioned
collateral land. The value of the collateral land has been determined at BDT 14.54 million on the basis of valuation report on an
independent valuer. Subsequent approval taken from the Board of Directors of MDB, the full amount of loan BDT 12.59 million
(market value of the property at BDT 14.54 million) transferred to Non-Banking Assets of the Bank, which will continue to sustain in
Bank’s Balance Sheet until sale/disposal of the said property acquired by the Bank u/s 33(5) of the Artho Rin Adalat Ain 2003 as
mortgagee Bank and 100% provision has been kept against the said non-banking assets as per guidance of Central Bank.

 Borrowings from other Banks, Financial Institutions and its Agents

The borrowing represented call borrowing, REPO of Treasury Bills and refinances against SME loans from Bangladesh Bank, etc. The
borrowings were mainly used for Bank’s liquidity, purchasing Treasury Bills/Bonds as a Primary Dealer (PD) Bank, which were
devolved on the Bank in excess of CRR & SLR requirements. During the year 2023, borrowings of the Bank decreased by 23.37% to
BDT 6,317.17 million in 2023 from BDT 8,243.23 million in 2022 (note # 11).

 Deposits
Customer Deposits are core source of funding for commercial banks. To scout the new customers, it was really challenging, being a
fourth generation Bank in the industry. However, we were able to manage efficient mobilization of deposit mix. The success was well
supported by expansion of Branch Network, ATM Booths, Agent Banking Centers (ABCs), Collection Centers, Central Liabilities Team,
Islami Banking Services through all of our Branch Networks and introduction of various rewarding deposit products, competitive
interest rates and excellent customer services. Business promotion continued through liability campaign carried out by Retail and
Institutional liability team for no-cost and low-cost deposits. The Bank also offered a number of attractive deposit schemes to cater
to the needs of small and medium savers for improving not only the quantum of deposits, but also focusing on qualitative changes
in future to the deposits structure.

The Bank successfully enhanced the deposit portfolio to BDT 60,302.72 million in 2023 with a growth of 4.40% compared to BDT
57,763.01 million in 2022 (note # 12). Cost of deposit and cost of fund stood at 5.44% and 6.95% in 2023, respectively as against 5.01%
and 6.38% in 2022, respectively. The strong customer-based deposits comprise of individual, corporation, small & medium size
enterprises, NBFIs, government entities, NGOs, autonomous bodies and others.

During the financial year 2023, MDB’s deposit blend was stable with no-cost and low- cost Deposits, which was at 37.67% of total
Deposits, Fixed Deposits to total Deposits was at 53.09% and Scheme Deposits to total Deposits was at 9.24%. A wide range of
liability products are now available at MDB to meet variant needs of deposit clients of which are:

Outstanding Amount
% of Growth in Deposit Mix (%)
Deposit Mix (In BDT Million)
2023 over 2022
2023 2022 2023 2022
Current Deposits 8,169.88 8,8 81.66 -8.01% 13.55% 15.38%
Bills Payables 465.29 293.99 58.27% 0.77% 0.51%
Short Notice Deposits 6,955.03 7,512.11 -7.42% 11.53% 13.01%
Saving Deposits 5,638.96 5,071.24 11.19% 9.35% 8.78%
Fixed Deposits 33,068.91 30,664.80 7.84% 54.84% 53.09%
Scheme Deposits 6,004.65 5,339.21 12.46% 9.96% 9.24%
Total Deposits 60,302.72 57,763.01 4.40% 100.00% 100.00%

Director’s Report
Midland Bank PLC.
58 Annual Report 2023
 Deposit Mix
2023 2022

30,664.80
33,068.92
8,881.66
8,169.88

6,955.03

7,512.11

6,004.65
5,638.96

5,071.24

5,339.21
293.99
465.29

Current Deposit Bills Payable Short Notice Savings Deposit Fixed Deposit Deposit Scheme
& Other Accounts Deposit

 Total liabilities other than shareholders’ equity

Total liabilities excluding shareholders’ equity of the Bank registered growth of 17.21% with a total volume of BDT 74,275.21 million
in 2023 against BDT 72,220.34 million in 2022. Core Deposits of the Bank increased by 4.40% to BDT 60,302.27 million in 2023 from
BDT 57,763.01 million in 2022.

 Shareholders’ Equity
The shareholders’ equity stood at BDT 9,150.66 million in 2023 compared to BDT 7,646.53 million in 2022, i.e., up by 19.67% over
2022. Statutory reserve was increased by BDT 15.71% to BDT 1,881.77 million in 2023 against BDT 1,626.33 million in 2022, while
retained earnings increased by 169.53% to BDT 868.86 million in 2023, as against BDT 322.35 million in 2022.

Income Statements
 Operating profit and Net profit after tax
The Bank reported operating profit before tax and provision of loans BDT 1,743.00 million in 2023 against BDT 1,526.73 million in 2022,
representing 14.17% growth over 2022. On the other hand, net profit after tax increase by 101.63% to BDT 1,133.11 million in 2023 from
BDT 561.97 million in 2022, due to increasing net interest income by 67.34%, as well as increase of deferred tax income on specific
provision against loans and advances during the year. As a result, EPS increased by 101.14% to BDT 1.77 in 2023 against BDT 0.88 in
2022 and corresponding ROA during the period grew to 1.39% in 2023 from 0.75% in 2022 and ROE also grew to 13.49% in 2023 from
7.47% in 2022. Besides NAV per share grew to BDT 14.31 in 2023 against 11.95 in 2022, i.e., grew by 19.75% year on year basis.

BDT in Million % of Growth in

Particulars
2023 2022 2023 over 2022 Revenue Mix 2023
8

Interest income 4,503.46 3,657.21 23.14%

684.0

24
2.
13

Interest paid (3,740.46) (3,201.24) 16.84%

763.00
Net interest income 763.00 455.97 67.34%

Investment income from Dividend 1,612.53 1,455.08 10.82%

Commission, fees and brokerage, etc. 684.07 736.38 -7.10%
53

Net Interest Income

12.

Income from Investment

1,6

Other operating income 132.14 98.26 34.48% Commission, Exchange and Brokerage
Other Opera�ng Income

Total operating income 3,191.74 2,745.69 16.25%

Operating expenses (1,448.74) (1,218.96) 18.85%

Revenue Mix 2022
98.25

Net operating profit before provision 1,743.00 1,526.73 14.17%

5.9
45

.39
Provision on Loans and Advances (465.80) (438.09) 6.33% 736

Net Profit before tax 1,277.20 1,088.64 17.32%

Net Interest Income
Provision for corporate tax (144.09) (526.67) -72.64% Income from Investment
Commission, Exchange and
Net Profit after tax 1,133.11 561.97 101.63%
5.08

Brokerage
1,45

Other Opera�ng Income

Earnings per share (EPS) 1.77 0.88 101.14%

Directors’ Report
Midland Bank PLC.
59 Annual Report 2023
 Net Interest Income
The interest income on loans and advances increased by BDT 846.24 million to BDT 4,503.46 million in 2023 against BDT 3,657.21
million in 2022, i.e., 23.14% growth up over 2022, due to increase loan portfolio by BDT 2,069.85 million as well as rise in yield rate
by 0.87 basis point over 2022.

On the other hand, interest paid on deposit & borrowings increased by BDT 539.21 million to BDT 3,740.46 million in 2023 from BDT
3,201.24 million in 2022, i.e., up by 16.84% over 2022, due to rise in cost of deposit by 0.43% over 2022, as well as volume of deposit
increased by BDT 2,539.71 million over 2022. As a result, net interest income increased by BDT 307.03 million from BDT 455.97
million in 2022 to BDT 763.00 million in 2023, i.e., growth up by 67.34% over 2022.

 Operating Expenses
Operating expenses of the Bank increased by BDT 229.78 million Summary of Expenses
to BDT 1,448.74 million in 2023 compared from BDT 1,218.96 2023 2022

million in 2022, i.e., increased by 18.85% over 2022, due to

increasing the branch networks and expansion of business

3,740.46

3,201.24
activities during the year. By and large, Bank’s administrative
expenses remained steady during 2023 and other operational

708.32

635.09
cost also were kept in control during reporting period. However,

449.81

337.07

246.80
290.61
a prudent management of expenses and cost-control are our
relentless concern and we commit to the practice of fair
expenses in all banking operations under a strong accounts and Interest/Profit Administrative Other Operating Depreciation on
Paid on Deposit Expenses Expenses and Repair to
auditing system. and Borrowing Bank’s Property

 HR Productivity
The proficiency of the employee’s contributed to the growth is evident from the following table:

Particulars % of Growth in
2023 2022
2023 over 2022
Number of regular employees’ contribution (excluding contractual
employees in 2023 and 2022 were 292 and 239, respectively) 515 488 5.53 %

In BDT Million
Operating income per employee 6.20 5.63 10.12 %
Operating expenses per employee 2.81 2.50 12. 40 %
Operating profit before provision and tax per employee 3.38 3.12 8.33 %
Net profit after tax per employee 2.20 1.15 9 1.30 %

 General provision against Unclassified Loans (UCL)

General provision against UCLs (Standard & SMA) was BDT 494.57 million in 2023 against BDT452.40 million in 2022 (note # 13.01).
General provision increased by 42.17 million over the last same corresponding year, due to increase of loans by BDT 2,069.85 million
over 2022. The Bank also maintained general provision against off-balance sheet exposures of BDT 104.79 million in 2023,
compared to BDT 112.99 million in 2022 (note # 13.03) in compliance with regulatory guidelines. General provision is considered as
Tier- ii capital of the Bank and acts as safeguard against future default and for supporting business growth by strengthening the
capital base of the Bank.

 Specific provision against Classified Loans (CL)

Specific provision is required to keep against classified loans and advances (Sub-standard-SS, Doubtful Debts-DF & Bad Loss-BL)
as per Bangladesh Bank guidelines. During the year 2023, Bank’s specific provision increased by BDT 494.12 million to BDT 1,448.79
million in 2023 from BDT 954.67 million in 2022, due to classification of some default loan accounts during the year, so that NPL
ratio stood at 3.81% in 2023 against 2.78% in 2022 (note # 13.01).

 Provision for investment in Shares/Debentures:

General provision against investment in Shares/Debentures/Commercial Papers was BDT 161.81 million in 2023 compared to BDT
242.94 million in 2022. The provision decreased by 81.13 million over the last same corresponding period, due to
transferred/realised/regularised the overdue of treasury investment during the year, in line regulatory guideline (note # 13.00).

 Special general provision COVID-19 against Unclassified Loans (UCL):

IIn order to strengthen the financial base and increasing shock absorbing capacity of Banks, BB instructed to keep 1.00% to 2.00%

Directors’ Report
Midland Bank PLC.
60 Annual Report 2023
 Special General Provision COVID-19 on all unclassified loans including SMA loans. As of December 2023, it was stood at BDT 112.32
million against BDT 170.87 million in 2022. This provisioning amount has to be kept in a separate head in the Balance Sheet and
cannot be transferred to income account until further instruction issue by BB in this regard (note # 13.02).

 Net profit after tax:

As per Income Tax Ordinance 1984 and Finance Act 2023, the Bank has to make adequate provision of current tax and deferred tax.
As such, we have made a provision of BDT 144.09 million in 2023 against BDT 526.67 million in 2022 (note # 36.00). After making
appropriate provision of tax, net profit after tax stood at BDT 1,133.31 million in 2023, compared to BDT 561.96 million in 2022,
representing 101.63% growth over 2022. The significant growth in net profit after tax during the period is largely due to adjustment
of BDT 546.02 million of deferred tax income on specific provision in line with regulatory guideline as well as increased our net
interest income by 67.34% over 2022 and ultimately it was added with our net profit during the period.

 Statutory Reserve:
As per section 24 of the Bank Company Act 1991 (Amendment up to 2018), every Bank has to transfer to the statutory reserve a sum
equivalent to not less than 20% of its net profit before tax (net profit as disclosed in the Profit and Loss Account prepared under
section 38 and before any money is transferred to the Government or any dividend is declared). The Bank has kept adequate
statutory reserve as guided by Bank Company Act and the accumulated amount of statutory reserve at the end of 2023 stood at
BDT 1,881.77 million, compared to BDT 1,626.33 million in 2022, i.e., increased by 15.71% over 2022.
 Key Financial Ratios of the Bank:
In BDT Million
Particulars
2023 2022
ROE -Return on average equity 13.49% 7.47%
ROA -Return on average assets 1.39% 0.75%
Cost to income ratio 45.39% 44.40%
Capital to Risk Weighted Assets Ratio (CRAR) 17.28% 14.83%
Advance Deposit Ratio (AD Ratio) 84.51% 81.71%
Non -Performing Loans (NPLs) Ratio 3.81% 2.78%
Earnings per share (EPS) in BDT 1.77 0.88
Net Asset Value per Share (NAV) in BDT 14.31 11.95

 Appropriation of Profit
Profit after tax (PAT) stood at BDT 1,133.11 million at the end of 2023, compared to BDT 561.96 million in 2022. Profit available for
distribution among the shareholders is BDT 325.57 million after a mandatory transfer to statutory reserve of BDT 255.44 million, i.e.,
20% on profit before tax, BDT 11.33 million for Startup Fund, i.e., 1% of net profit after tax and adjustment of deferred tax BDT 543.30
million. The Board of Directors in its 153rd meeting held on April 28, 2024 recommended 5.00% cash dividend for the financial year
2023 which will be reviewed and approved by the shareholders in its next 11th Annual General Meeting (AGM).

 Summary of appropriation of profit

Particulars In BDT Million

2023 2022
Profit after tax (PAT) 1,133.11 561.96
Retained earnings brought forward from previous year 2.52 11.68
To be appropriated 1,135.63 573.64
Transfer to statutory reserve -255.44 -217.73
Transfer to CSR - -27.95
Transfer to Startup Fund -11.33 -5.62
Retained Surplus 868.86 322.34
Adjustment of deferred tax 543.30 -
Net Distributable Profit 325.56 322.34
Paid-up Capital 6 ,396.70 6 ,396.70
Dividend payout Ratio 5.09% 5.04%

Directors’ Report
Midland Bank PLC.
61 Annual Report 2023
  We may pay dividend after adjustment of deferred driven transactions denominated in foreign currency. We are
tax income on provision for classified loans & constantly emphasizing the need for increasing correspondent
advances as per BRPD circular 11 dated 12 partners and trying to develop business relationship with our
December 2011. correspondent Banks worldwide.
 CSR expenses for the year 2023 reported in other
expenses note # 34. Risk Management
Management of risk is a dynamic process interrelated with the
Human Resources philosophy, culture and functionalities of the Bank. Risk is evidently
Human Resources Management Division aims to build strong, defined, mitigated or minimized to shield capital and to maximize
dedicated, skilled and professional human capital base for the value for shareholders. Midland Bank affixed utmost priority to
Bank, hence contributing to profitability curve and sustainable establish, maintain and upgrade risk management infrastructure,
growth of the Bank. We believe that everyone has a latent talent, systems and procedures. Adequate resources are allocated in this
and for that we thrive to find out the underlying talent of regard to improve skills and expertise of relevant banking
employees and help them to utilize their talent properly towards professionals to enhance their risk management capacity. The
achieving individual development and organizational goals. This policies and procedures are approved by the Board of Directors
Bank has established performance driven culture to expedite the and regularly assessed to bring these up to optimum satisfaction
utmost effort of its employees. level. Recognizing the impacts of internal and potential risk
domains, the Bank has laid down different risk management
Our HR mission is to be the employer of choice in the financial processes consisting of definition, identification, analysis,
sector, where employees will work with pride and pleasure. MDB measurement, acceptance and timely management of risk profile.
believes that Human Resource Development is a continuous
process and the output of the development helps the organization It is always better to build a robust risk management culture in the
to meet the objective and vision of the organization. The Bank Banks and Financial Institutions as these primarily deal with
highly emphasizes on attitude driven talent acquisition process, as depositors’ money and work as a financial value chain. We,
we do not offer merely a job for the employees, but we are highly therefore, need highest attention and commitment for the highest
conscious in offering a better career and make them confident and authority in this regard. By all means, we should try to avoid
best fit of the next role. The main motto of Human Resources surprises in banking transaction through building a strong
Management Division is to enhance the service excellency curve operational procedure in Banks and Financial Institutions (details
for the internal and external customers of the Bank. The are discussed in Risk Management report in this annual report).
Management team of the Bank with their talent & skill has now
been working for business excellence with new pledge, based on Maturity Analysis
professionalism, team work and strong bondage of interpersonal
Below 1-5 Above
relationship with good governance. The financial sector with Assets Total
1 Year Year 5 Year
increased global, regional and local competition coupled with
socio-economic sensitivity has created enormous challenges in Interest earning assets 32,869 21,098 18,805 72,773
organizations like private commercial Banks. To cope with new
Non-interest earning assets 3,985 3,004 3,664 10,653
challenges, our strategic approach is to make our people techy to
cope with technology based environment. Thus, we thrive to care
Total assets 36,855 24 ,102 22,469 83,426
for our people, so that they can grow as future leaders of the Bank.
Also we fostered a work environment to attract, develop and retain
Interest bearing liabilities 46,795 15,966 3,859 66,620
quality manpower to ensure development of the Bank. We
appreciate the employees' creativity and innovation for improving Non-Interest bearing liabilities 321 2,169 5,166 7,655
the work process of the Bank. Employees will be provided the work
life balance, respect and caring attitude within the organization, Total liabilities 47,116 18,135 9,024 74,275
that they are expected to share externally with every customer as
a Brand Ambassador of the Bank. Maturity Gap (10,261) 5,967 13,445 9,151

Correspondent Relationship
MDB has established correspondent relationship all over the world Green Banking
with a number of foreign Banks. The Bank continues to follow the Green Banking refers to the efforts of the banking sector to keep the
needs and business opportunities of its clients. The Bank maintains environment green and to minimize greenhouse effects through
reducing the use of non-renewable energy & materials (electricity,
17 (Seventeen) NOSTRO Accounts in four major international
gas, fuel, paper, stationery etc.), increasing the use of renewable or
currencies and ACU currency and 101 RMA relationships with
recyclable energy & materials (solar power, bio-gas, electronic media
reputed international Banks in the major financial centers around
of communication etc.), reducing the emission of industrial carbon,
the globe, for settlement of trade finance and all other customer scrutiny of negative impacts of the corporations on environment and

Directors’ Report
Midland Bank PLC.
62 Annual Report 2023
taking necessary mitigating measures there against during financing among the stakeholders of the Bank. MDB strives to practice and
and also to finance green projects (i.e. ETP, Bio-Gas Plant, Green follow standard principles in accordance with the rules, regulations
Factory & Office Building, Solar Power, Hybrid Hoffman Kiln, energy and guidelines from regulatory authorities. It is incumbent upon
& water efficient projects, water conservation, rain water harvesting every leader of our Bank to model the right values and to lead by
etc.). Products included in green banking are Online Banking, Internet example to ensure the right behavior continues year after year. The
Banking, Mobile Banking, ATM, ADC, Green Credit, Green Marketing, Board of Directors remained committed to ensure the highest
E-Signatures, Solar Use, Bio-Gas, afforestation. standards of corporate governance throughout the organization
with the objectives of safeguarding the interests of all stakeholders
MDB prepares Green banking & sustainability reports to disclose and financial performance of the Bank. They guided the Bank
updates on its quarterly activities and engagements to Sustainable towards the goal set by the stakeholders, ensuring highest
Finance Department of Bangladesh Bank as well as to the Board of standards of integrity, accountability, transparency, ethics and
Directors. Also, Green Report Card on yearly activities is published in professionalism. With the ultimate objective of taking this financial
the annual report and posted on the website. institution to the next trajectory of inclusive sustainable growth, two
supporting committees, i.e. Executive Committee and Audit
Money laundering and Terrorist Financing Committee provides guidance and direction to the Board and
Money Laundering (ML) and Terrorist Financing (TF) are global Management. Another committee- Risk Management Committee
phenomena, apparent in almost every part of the world. ML and TF analyzes Bank‘s core risks. For an effective control system, Internal
are components of terrorist activity which threatens a country‘s Control & Compliance Division (ICCD) and Board Audit Committee
financial sector reputation as well as its national security. Emerging functions in sync within the Bank. External Auditors appointed by
sophisticated techniques of moving illicit money have compelled the shareholders for auditing the financial statements of the Bank
financial intermediaries including MDB to make compliance and providing their independent opinion whether the financial
programs more rigorous. To stave off the risk of financial crime, statements were prepared in accordance with applicable rules and
MDB focused on training of employees, strengthening its screening regulations and international accounting standards that reflects the
system and ensuring that policies and procedures were effective truth and fairness of the financials of the Bank.
and always up-to- date. MDB is firmly determined not to let money
launderers and terrorist or perpetrators use it as their tool to Corporate Sustainability
launder money or finance terrorist activity in any possible way. In order to uphold corporate sustainability, MDB has concentrated
in the key areas i.e. nation building, creation of healthy and
Corporate Social Responsibility (CSR) congenial workplace, enhancing the marketplace, support to the
Initiated by Bangladesh Bank (BB) in 2008, the Corporate Social community and fortification of the environment. As a socially
Responsibility (CSR) mainstreaming campaign in Bangladesh’s conscious and responsible corporate body, MDB is committed to
financial sector has entrusted all Banks and Financial Institutions improvement of the society as a whole. MDB is continuously trying
into a broad range of direct and indirect CSR engagements to put its efforts to help the disadvantaged population of the
including humanitarian relief and disaster response, widening of country in the sector of education, health, disaster management,
advancement opportunities for disadvantaged population sports, arts and culture, etc. The Bank is contributing a portion of its
segments with support in areas of healthcare, education and net profit every year to the CSR Fund. The Bank conducted various
training, ‘greening’ initiatives to prevent environmental degradation, CSR activities during the year 2023 (details are discussed in CSR
and so forth. report in this annual report).

With a view to the above, a CSR Policy of Midland Bank PLC. was Remuneration of Directors and Managing Director
earlier approved by the Board of Directors of the Bank in February The Bank did not pay any remuneration to its Directors. As per
2015. The Sustainable Finance Department of Bangladesh Bank in BRPD circular # 9, dated September 19, 1996, the Chairman may be
January 2023 introduced a new Policy Guidelines on CSR for the provided car, telephone, office chamber and private secretary. In
Bank. Also, Policy on CSR needs to be reviewed/updated addition to the above, Directors are entitled to get fees and other
considering recent financial developments and changes in the benefits for attending in the meeting of the Board, Executive
global economy to generalize, emphasize and organize CSR Committee, Risk Management Committee and Audit Committee as
activities for the environmental, social, equitable and sustainable per regulatory guidelines are shown in note # 31. The Managing
development of the country. Director & CEO was paid salaries and allowances as per approval
of the Board of Directors, as well as Bangladesh Bank are shown in
As per instruction of Bangladesh Bank, MDB formed a dedicated note # 26.01.
Sustainable Financial Unit, under direct supervision of the Managing
Director of the Bank at the Bank’s Head Office. As per instruction by Accounting Policy and Implementation of IFRS/IAS
the Board of Directors of the Bank, MDB started CSR activities at The Board of Directors are responsible for the preparation and fair
the time of its inauguration. During the financial year 2023, the Bank presentation of Bank’s annual financial statements comprising
spent an amount of BDT 2,78,41,218 for annual CSR activities (details Balance Sheet, Profit & Loss Accounts, Cash Flow Statement,
are discussed in CSR report in this annual report). Statement of Change in Equity and a summary of significant
accounting policies and other explanatory notes, and the Director’s
Corporate Governance report, in accordance with Bangladesh Bank guidelines,
Corporate governance involves a set of identifiable relationships International Financial Reporting Standards (IFRS)/ International

Directors’ Report
Midland Bank PLC.
63 Annual Report 2023
Accounting Standards (IAS) and in the manner as required by the Internal Control Environment
Company Act, 1994. The Directors are also responsible for The Board of Directors set the tone for an effective internal control
designing, implementing and maintaining internal control relevant background from end to end regular review of the process
to preparation and fair presentation of these financial statements identifying, evaluating, and managing the significant operational
that are free from material misstatement, whether due to fraud and risks of the Bank. Management is responsible to formulate
error, selecting and applying appropriate accounting policies and Standard Operating Procedures (SOP) duly approved by the Board
making accounting estimates that are reasonable in this context. of Directors, are signed off by each Head of Division/Branch to
provide assurance that this SOP is communicated, understood
Internal Control and complied with accordingly. Every year top management team
The Board of Directors is responsible for approving the overall conducts a self-assessment of key control that affect the business
business strategies and significant policies of the Bank, setting and develop action plans to make the internal control
acceptable level for these risks and ensuring that senior environment stronger.
management takes necessary steps to identify, measure, monitor
and control of these risks. The Board of Directors also approve an Supplier Payment Policy
effective internal control system that also requires to setting an The Bank has developed and implemented a set of vendor’s
appropriate control structure, with control activities defined at payment policy in its procurement policy and procedures dully
every business level. These include review by top level approved by the Board of Directors. Before processing any
management, appropriate activity controls for different payment, General Service Division (GSD) and Financial
departments/divisions, physical control, checking for compliance Administration Division (FAD) dedicated team review the bills in
with exposure limits and follow-up on non-compliance, a system of compliance with the terms of reference (TOR) of Work Order and
approvals and authorization, and a system of verification and necessary VAT, Withholding Tax and other applicable security
reconciliation, thereon. charges are being deducted from bills and issue Pay
Order/Account Transfer in favor of the eligible
Standard Reporting vendors/beneficiaries. MDB is keen to build strong business
The financial statements have been prepared in accordance with relationship with its vendors and service providers. Hence, the Bank
Bangladesh Bank guidelines, International Financial Reporting does not face any litigation from its any customer or stakeholder
Standards (IFRS)/International Accounting Standards (IAS) as since of its inception.
adopted by the Institute of Chartered Accountants of Bangladesh
(ICAB) and applicable provisions of Bank Companies Act 1991 Shareholders’ Value
(Amendment up to 2018) and Company Act, 1994. Midland Bank The Board of Directors is fully committed to maximize the high
PLC. endeavors relentlessly to stay compliant in every aspect value of its shareholders’ investment by earning solid profitability
including corporate and financial reporting as per regulators’ through delivering excellence in services to its valued clients and
requirements. In this respect, the Management accepts the stakeholders. The Board was able to keep its commitment by
responsibilities for the integrity and objectivity of these financial settling excellence profitability trends in the year 2023. During the
statements, as well as various estimates and judgments used year, earning per share (EPS) stood at BDT 1.77 against BDT 0.88 in
therein. The estimates and judgments have been made on a 2022, Return on Equity (ROE) at 13.49% in 2023 against 7.47% in
prudent and reasonable basis, in order to ensure that the financial 2022, Return on Average Assets (ROA) stood at 1.39% in 2023,
statements reflect the financial operations of the Bank in a true and against 0.75% in 2022 and Net Assets Value per share (NAV) stood
fair manner. at BDT 14.31 compared to BDT 11.95 in 2022.

Going Concern Meeting of the Board of Directors

The conceptual framework of International Accounting Standards The Board of Directors hold meeting on a regular basis, usually
(IAS-1) is that financial statements are generally prepared once in a month but emergency meetings are being called when
assuming that the entity is a going concern and will continue in deemed necessary. Management provides information, references
operation for the foreseeable future. Hence, it is assumed that the and detailed working papers for each of the agenda to all Directors
entity has neither the intention nor the need to liquidate or curtail well ahead of the scheduled date for meeting. Each Meeting, the
materially the scale of its operations. Therefore, it is also assumed Chairman of the Board of Directors allows sufficient time for the
that the entity will realize its assets and settle its obligations in the Directors to consider respective agenda item in a prudent way and
normal course of business. IAS-1 requires Management to make permits them to freely discuss, inquire, and express independent
an assessment of an entity's ability to continue as a going opinions on the issues of interest so that they can fulfill their duties
concern. If Management has significant concerns about the to the best of their abilities. During the year 2023, a total 14
entity's ability to continue as a going concern, the uncertainties meetings of the Board of Directors were held.
must be disclosed. If Management concludes that the entity is not
a going concern, it means that assets will be recognized at Appointment of Auditors
amount which is expected to be realized from its sale rather than Hoda Vasi Chowdhury & Co., Chartered Accountants had
from its continuing use in the ordinary course of business. Assets conducted the audit of the Bank for the financial year 2023. They
are valued for their individual worth rather than their value as a have completed 2nd term (2nd year). As per Bangladesh Bank’s
combined unit. Liabilities shall be recognized at amounts that are guideline regarding list of Audit Firms (Chartered Accountants)
likely to be settles.

Directors’ Report
Midland Bank PLC.
64 Annual Report 2023
eligible for auditing banks and financial companies (updated as on contained in IAS 24 (Related Party Disclosures) and relevant
05.02.2024), maximum number of statutory audit in banks and provisions of Bank Company Act 1991 and Bangladesh Bank BRPD
finance companies in a financial year is 06 (six) and Hoda Vasi Circular No. 12 dated 15 June 2022. Details of the related party
Chowdhury & Co., Chartered Accountants express their transactions have been disclosed in Annexure – D, Annexure - E
unwillingness to conduct audit for the FY 2024. Appointment of and note no. 44 of the FS 2023.
new auditor for the FY 2024 is under process.
Maintaining Proper Books of Account
Annual General Meeting (AGM) The company has attentively maintained proper books and
The schedule of 11th Annual General Meeting (AGM) of the Bank to records in accordance with the stipulations outlined in the
be decided later. The Directors’ Report along with the financial Companies Act of 1994, the Securities Laws of Bangladesh, and
statements of the Bank was approved at the 153rd meeting held on other relevant laws.
April 28, 2024 to be placed before the shareholders of the Bank in
the 11th AGM for review and approval. Key Operating and Financial Data
On pages 14 and 15, there is a comprehensive overview
Outlook of Financial Year 2023 summarizing key operating and financial data spanning the last 05
The Management of MDB is conscious of the aftermath of the (five) years. This short but detailed presentation gives a good look
effect of withdrawal of policy of deferral of further classification if at how the company has been doing. It helps shareholders make
the clients pay 15% of their dues which was ended on December 31, smart decisions and plan for the future because it gives them
2023 and single digit interest rate capping effective from 1st April important information about the company's direction.
2020. In this respect, management will operate in a compliant
manner as usual taking the prudent guidance of the Honourable
Board of Directors to address the situations after December 31, Acknowledgements
2023. However, MDB has gained resilience to absorb any sudden I would like to draw conclusion by expressing my debt of gratitude
shock of deposit outflow by huge improvement in the deposit mix. on behalf of my colleagues of the Board to all our stakeholders,
At present, 38.61% of total deposit consists of individual deposits, patrons, business partners and our most valued clients, as without
retail and small deposits base. Back in 2013, the nine fourth their support and patronization as well inspiration it would not have
generation Banks initially offered long term loans and advances been possible for us to make progress/headway whatever extent
from short term deposits that they acquired. This approach we have attained so forth. In the same breath, I would also express
however caused stress in one new generation Bank that failed to my deep sense of appreciation and gratitude to the Government of
maintain liquidity when irregularities came to surface and Bangladesh, Bangladesh Bank, Ministry of Finance, Bangladesh
eventually had to be reconstituted through government Securities & Exchange Commission (BSEC), Dhaka Stock Exchange
intervention. It is our immense pleasure that MDB has come (DSE), Chattogram Stock Exchange (CSE), National Board of
through the phases by strengthening and diversifying its deposit Revenue (NBR) and other regulatory bodies for their precious
mix and enhancing corporate governance and maintaining guidelines, advice and relentless support. I also appreciate the
rigorous compliance. contributions made by the management team and the rank and file
employees of the bank for their dedicated service and hardwork,
In pursuit of its business growth, the Bank will invariably adhere to which made it possible for us to churn out the expected financial
good corporate governance practice, appropriate risk result in the face of headwinds and challenges. I am also very much
management policies, prudent credit policies and practices in thankful to my colleagues on the Board who have proved
order to upkeep sustainable long-term growth and profitability of themselves as very much supportive in giving strategic policy
the Bank for the benefit of all stakeholders. The Bank confidently guidance towards taking this institution to the next growth
looks forward to continue sharing its success in delivering greater trajectory. I confidently believe that In-Sha-Allah by the grace of
shareholders’ value in coming year 2023. the Almighty and by virtue of the dedicated effort of our
professional management team will be successful in reaching our
Related Party Transaction cherished destination that is to turn Midland Bank into the one of
Parties are considered to be related if one party has the ability, the finest financial institution with resilient financial footing and
directly or indirectly, to control the other party or exercise sound fundamentals.
significant influence over the other party in making financial and
operating decisions. Parties are also considered to be related if
they are subject to common control or common significant On behalf of the Board of Directors,
influence. Related party transaction is a transfer of resources,
services, or obligations between related parties, regardless of
whether a price is charged as per IAS 24 Related party disclosure,
Bangladesh Bank & BSEC guidelines. The Bank in its ordinary
course of business undertook financial transactions with some Nilufer Zafarullah
entities or persons that fall within the definition of ‘Related Party’ as Chairman

Directors’ Report
Midland Bank PLC.
65 Annual Report 2023
 Performance Overview by Different Divisions/Departments
INSTITUTIONAL BANKING DIVISION
Banking industry experienced a challenging year in terms of Structured finance unit products/services
liquidity, governance, foreign exchange volatility in 2023. Moreover,
• Fund raising for project finance
tensions on global political arena, particularly war & resultant
anxiety in Europe, the largest destination of export from • Fund raising through alternative financing like- Bonds,
Bangladesh, has affected primarily RMG & Textile sector and preference share, SUKUK
in-turn overall economic growth of Bangladesh. Off late the war in • Agency & Advisory function
Middle East has also further burdened the struggle in terms of
increase freight & longer marine transit. • Low cost financing /soft loan from BB/DFIs

Despite the challenges in 2023, Midland Bank PLC. was able to Financial performance
steer through the difficulties and secure significant growth while Despite the difficult market condition and myriads of challenges,
being cautious. Towards growth, Institutional Banking Division IBD continued portfolio growth. Total IBD loan and advances in
(IBD), the major contributor to the Bank’s income and portfolio, 2023 stood at BDT 4,837 crore which was 88% of total loan &
achieved its growth through professionalism, dedication, hard work
advances worth BDT 5,486 crore of the Bank. IBD deposit balance
and service orientation.
remained at BDT 1,165 crore which is 19% of total deposit of BDT
A positive impression in the market and continuous creativity has 6,030 crore of the Bank.
enabled to deliver financing solutions for corporate clients to their
satisfaction. IBD performance at a glance:
Loans & Advances Deposit
The Asset portfolio of IBD has reached to BDT 4,837 Crore with
only 3.53% NPL, a ratio which despite the increase from last year, is 649 Crore 1,165 Crore
one of the lowest in the industry. Despite the slowdown, IBD has
also achieved milestone in trade volume of USD 414.30 million in
Export-Import, of which USD 226.4 million was from Export &
Inward Remittance. Due to the significant export inflow, relative to
IBD’s funded portfolio, IBD could cater to not only the import 4,837 Crore 4,865 Crore
requirement of existing clientele, but also onboarded prominent
IBD Other
corporate entities e.g. multinationals, and large local corporates by IBD Other

providing for their import requirement amid present difficulties of Chart 1: IBD portfolio position in comparison with
accommodating the opening of import LCs across the banking Bank’s total portfolio in 2023
sector. Import LC issued during 2023 was USD 187.9 million in total.
Major Deals and Achievements/Special mentions
Product basket: IBD’s product basket ranges from conventional In addition to the above accomplishment in terms of earning and
loan & deposit products often tailored to corporates’ financing portfolio base, IBD bagged some of the remarkable achievements
requirements, advanced & innovative products as FX derivatives, in 2023 as presented below:
project financing as well as facilitating services outlined below:  Midland Bank PLC. have already signed following
pre-financing / refinancing scheme with Bangladesh Bank:
 Green Transformation Fund (GTF)
Regular institutional products
 Export Facilitation Pre-Finance Fund (EFPF)
• Term loan  Refinancing Scheme for Ship Building Industry
• Working capital financing  Bangladesh Bank Long-Term Financing Facility
• Trade financing (export/import) (BB-LTFF)
And under the above schemes have financed different projects
• Islamic financing
bi-laterally as well as lead arranger & participating bank.
• OBU financing
 MDB as mandated lead arranger is financing Summit
• Letter of credit Communications Ltd for BDT 200 crore under GTF for
• Guarantee the clients NTTN capacity expansion.
 For another project, again as mandated lead arranger
• Bills discounting
MDB is financing Healthcare Pharmaceuticals Limited
• Remittance for BDT 200 crore for capacity expansion.
• SME loans  MDB has financed renewable energy project, specifically
rooftop solar power system for different industrial units
• Green financing
under ‘Environment Friendly Products/Projects/
• Institutional deposit products initiatives’, as part of the bank’s commitment to
patronize sustainable & green energy solutions.

Performance overview by Different Divisions/ Departments

Midland Bank PLC.
66 Annual Report 2023
Challenges: Outlook and Strategies:
We know that challenges will always be there & we have to open In the year 2023, our major focus revolved around the following
window of opportunity amid difficulties. The macroeconomic strategic moves:
environment in 2023 posed some major challenges for banking • Build and develop a balanced portfolio both in asset and liability
sector, arising & extending from post-covid impact to major for ensuring sustainable balance sheet growth of the Bank.
political and economic issues in global arena that left behind • Increased due diligence while onboarding new clients
systemic ramification on the overall industry. Among the wide adhering to banks credit policy and compliance.
range of challenges IBD faced, the following major challenges • Taking exposure across different industries to diversify
have called out for strategic action: portfolio and mitigate sector wise risk concentration.
• Conflict in global theater that followed the negative • Ensuring maximum NPL recovery throughout the year
impact of Covid-19 has substantially lowered the to minimize provisioning against loans & suspense of
consumer demand in Europe primarily and also in interest income.
America. This significantly affected ‘Fast Fashion’ • Look for alternative investment opportunities and
clothing shipment to the largest export destinations of non-funded income.
Bangladesh. This jeopardized the inflow of foreign • Getting access to soft loan/low cost financing from
currency from RMG sector that the country is so heavily multilateral and bilateral lending agencies.
reliant on. • Hedging the risk of importer clients through derivatives
• The slowdown in export, and remittance as well, arising amid exchange rate volatility and also to advice for natural
from global conflicts, resulted in inevitable deceleration hedging by redirecting clients to BDT denominated import
of Import. financing from preferred & popular USD denominated
• Lower private credit growth was unavoidable due to financing where the clients’ revenue inflow is in BDT.
decelerated export & import. • Strive for continuous innovation in product design
• The pressure on balance of payment due to slowed • Develop a robust customer centric IT platform to
down export & remittance in turn have exerted pressure ensure ease of transaction & also to increase velocity of
on sovereign credit ratings of Bangladesh & lead to money circulation in line with guidance &
devaluation of BDT against USD. macro-economic objective of controlling authorities.
• Lending rate cap based on SMART rate, while required
to ensure continued economic activity amid overall Concluding remarks:
downturn, has shrunk the spread, impacting overall IBD takes the opportunity to thank all of our clients, stakeholders,
profitability of the banking sector. shareholders and regulatory bodies for their continuous support
• Volatility in Bank’s liquidity position and guidance. Constant strive to be the finest in the industry has
• Due to stagflation, recovery of outstanding loans and created a momentum for adopting best banking practices,
interest accrued thereon became difficult. This posed a promoting a sustainable diversified portfolio within the compliant
threat in terms of rising loan classification which regulatory framework. In IBD, we always welcome and embrace a
significantly shrinks bottom line distributable profit. culture of being innovative, resilient and customer focused.

RETAIL DISTRIBUTION DIVISION

Retail Distribution Division (RDD) has achieved a steady growth throughout the year of 2023. A total of 39 Branches, 19 Sub Branches, 127
Agent Banking Centre and 11 Collection Booths are upholding the MDB brand and retail banking presence across the country. In 2023,
MDB opened two more Rural Branches at Chandraganj and Bokhter Munshi Bazar along with 3 Sub-Branches with attached ATM Booths
and 18 more Agent Banking to reach out new geographical locations across the country and add value to its local communities.

Banking sector has seen more challenging situations in the year 2023 due to worldwide economic catastrophe. Despite the challenges,
MDB has confirmed its commitment to increase the deposit and loan products of the bank through trustworthy customer base, flawless
services and commitment. The number of customers has grown by more than 22.89% in the year 2023.

Performance overview by Different Divisions/ Departments

Midland Bank PLC.
67 Annual Report 2023
Retail Distribution Division Deposit, Loan & Customer Portfolio in BDT Crore
Growth in
Deposit Y 2018 Y 2019 Y 2020 Y 2021 Y 2022 Y 2023 2023
Retail Branches 2,458.69 2,882.65 3,182.36 3,118.60 3,539.57 3,937.69 398.11
Retail Sales Dept. 1.64 31.73 30.10
Islami banking Wing*** - - 54.55 106.38 195.10 225.98 30.88
Agent Banking 9.24 24.77 43.74 53.48 57.27 80.43 23.16
Card Division 4.25 8.76 9.92 12.16 2.24
Collection A/C 103.77 88.46 113.15 24.69
RDD Total Deposit 2,467.93 2,907.42 3,284.90 3,390.99 3,891.96 4,401.15 509.18
in BDT Crore
Growth in
Loan Y 2018 Y 2019 Y 2020 Y 2021 Y 2022 Y 2023 2023
Retail Loan 107.19 114.94 112.61 135.40 159.70 175.46 15.76
Branch SME Loan 214.98 216.71 208.63 214.60 233.44 241.74 8.30
Intt Receivable (RDD) 0.25 0.21 0.25 0.36 0.57 0.21
Total RDD Loan 322.42 331.64 321.45 350.26 393.50 417.77 24.27

Customer 67,455 100,006 127,978 157,465 187,239 230,093 42,854

Customer growth is remarkable in last two years. Also, MDB crossed BDT 500 Cr. deposit in last two years consecutively.

Year wise Deposit Portfolio

of Retail Distribution Division (i n BDT Crore)
4,401.15
3,891.96
3,390.99
3,284.90
2,907.42
2,467.93

Y 2018 Y 2019 Y 2020 Y 2021 Y 2022 Y 2023

Year wise Loan Portfolio

of Retail Distribution Division (i n BDT Crore)

417.77
393.50
350.26
331.64
322.42

321.45

Y 2018 Y 2019 Y 2020 Y 2021 Y 2022 Y 2023

Year wise Customer Portfolio

230,093
187,239
157,465
127,978
100,006
67,455

Y 2018 Y 2019 Y 2020 Y 2021 Y 2022 Y 2023

Performance overview by Different Divisions/ Departments

Midland Bank PLC.
68 Annual Report 2023
Management Information System
Data regarding Deposit, Loan, Account, Customer, Branch, Sub-Branch, Divisions are accumulated regularly in Daily MIS Dashboard. MIS
of other products like midland online, e-mail availability, new or attrition of fund, school banking, NPL are amassed as on regular basis.

Branch & Individual Scorecard

Branch and Sub-Branch Performances are evaluated through Branch Scorecard on quarterly basis both in urban and rural categories.
Also, Branch employees’ performance are measured through Individual Scorecard.

Performance of both business and service team is assessed through mark based system. The scoring system and marks are updated and
redesigned time to time. As Branch score depends on branch employees’ performance, so, branch scorecard carries marks for the
individual scorecard in the same way.

Value Added Services

In MDB, we prioritize customers’ needs ahead of all. Every products and services have been designed to serve the purpose of the
customers. In 2023, the challenging situation arose for the worldwide economic crisis, where, demand of need based value added services
(VAS) was observed, where MDB focused on. Our credit and prepaid card holders are now able to register midland online from anywhere,
anytime. A Challan System was introduced through which customers can pay income tax, e-passport fee, VAT etc. Besides, clients can pay
different types of government fees using midland online avoiding going to the branches. QR code was introduced through which
customers can withdraw cash without card or cheque just scanning the QR code in cash counter. In 2023, MDB also introduced Digital
Loan through which customers can apply for loan without going to the branch.

Product Development
The Banking sector is becoming more strategically focused and technologically advanced to respond to consumer’s expectations while
trying to defend market share against an increasing array of competitors. The Retail Banking market is growing very rapidly where the
opportunities are ever-increasing. The most critical component of Retail Banking is to increase the deposit base keeping the cost at
minimum level. Banks are focusing on launching innovative products to meet up the pressure of deposit growth. The best approach for
Banks is to flourish technology driven market of deposit and customer base as well as to launch innovative low cost deposit products.

The Future of Retail Distribution Division

Retail Distribution Division (RDD) will strive to achieve sustainable growth with a vision to become market leader at near future by
establishing a compliance and performance based culture, satisfying the client requirement with excellence. RDD plans to expand the
Bank’s business and service network under the latest technological advancements to serve its customers with satisfaction and
simultaneously, provide a secured banking platform that will make Midland Bank as their preferred banking partner.

Current MDB Retail Products are below:

Deposit Products Loan Products
MDB College Saver
Specialized Products

MDB Current Deposit MDB Digital Family Support Scheme Personal Loan (EMI)
Digital Products

MDB School Saver

MDB Fixed Deposit MDB Digital Fixed Deposit MDB Car Loan (EMI)
Regular Products

MDB e-Saver Account

MDB FD Plus MDB Digital Monthly Savings Scheme MDB Home Loan (EMI)
MDB CPP Savings MDB Amar Bari (EMI)
MDB FD Plus Corporate MDB Digital Savings Account
MDB Shikhsha Sanchay House Building (Res)
MDB Fixed Deposit
Regular Products

Scheme MDB Digital Double Benefit Plus Scheme

Corporate MDB Secured Loan (EMI)
MDB Super Monthly
MDB Interest First Savings MDB Secured Overdraft
MDB Family Support Scheme Overdraft -FO
MDB Super Saver
Scheme Products

MDB Double Benefit Plus Scheme

MDB Time Deposit
MDB Kotipoti
MDB Time Deposit
-Corporate M DB Millionaire Savings
Scheme
Savings Account General
MDB Platinum Savings
Savings Account Staff Scheme
MDB Travelers’ Savings
Special Notice Deposit
Scheme

Performance overview by Different Divisions/ Departments

Midland Bank PLC.
69 Annual Report 2023
AGENT BANKING
Midland Bank obtained agent banking license from Bangladesh Foreign Remittance Payment
Bank on July 10, 2016 and started its operation on January 23, 2017 (Amount in Crore)
with launching its first Agent Centre. Midland Bank PLC. started the 120.00
112.49
year 2023 with 109 (One Hundred Nine) agent banking centers 100.00 95.64
across the country. By December 2023, 18 (Eighteen) new agent 80.00
64.14
banking centers had been established in different parts of the 60.00
country taking the total number of agent banking centers to 127 40.00 42.65
(One Hundred Twenty-Seven). As usual, Midland Bank PLC. 20.00 0.12 1.56 16.84
preferred those areas in establishing new agent banking centers 0.00
where modern banking facilities are unavailable.

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agent banking centers in 29 Districts and 67 Upazilas across the

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country to ensure the safety of customer deposits and provide
modern banking services. Through Midland Bank agent banking
centers, we are providing 24/7 banking transactions, with account REB Bill Collection
open, cash deposit and withdrawal, loan disbursement, loan EMI (Amount in Crore)
collection, Credit & Prepaid card bill payment, utility bill service,
foreign remittance disbursement, debit and credit card service.
40.00
Besides this, we are able to transfer money from Midland Bank to 27.95
35.81
30.00
Mobile Financial Services (bKash, Rocket, Nagad, Upay) and also 19.16
20.00 10.30
able to transfer money from bKash and Rocket to Midland Bank
10.00 - 0.23 2.46
Account. Customers can avail Islamic banking services besides
0.00
conventional banking from any agent banking center.

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Since inception, the growth of MDB Agent Banking is highlighted

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through below graphs:

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No. of Agent Centres
150 Total Deposit
127 (Amount in Crore)
100 109
100
100.00
60
50 43 81.18
30 57.27
8 43.74 53.48
50.00 24.77
0 1.93 9.26
0.00
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No. of Accounts
MDB CARDS
Tap into Convenience: Midland Bank Introduces Contactless Cards
50000 Across Credit, Prepaid, and Debit Cards
40000 42031
33966 Midland Bank is excited to announce the rollout of contactless
30000 27720
20557 cards across its entire range, including credit, prepaid, and debit
20000 14306 cards. With this innovative upgradation, customers can now enjoy
5790
10000 912 the added convenience and speed of contactless payments for all
0 their transactions.
Whether it's grabbing a quick coffee, paying for groceries, or dining
17

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out with friends, Midland Bank's contactless cards make

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transactions faster and more convenient than ever before. Simply

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tap your card on the reader, and you're good to go – no need to

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enter a PIN or swipe your card.

Performance overview by Different Divisions/ Departments

Midland Bank PLC.
70 Annual Report 2023
This initiative reflects Midland Bank's commitment to embracing cutting-edge technology to enhance customer experiences. With
contactless cards, customers can enjoy greater flexibility, security, and ease of use in their everyday transactions, making payments simpler
and more seamless than ever before.

MDB VISA Credit Card:

Our VISA International dual currency Platinum and Gold Cards are accepted globally and locally at all merchant outlets and restaurants
showing VISA logo. Moreover, you can enjoy discounts and interest free EMI on repayments at discount partners by showing your MDB
Credit Cards. Some of the salient features include, 100% concession on renewal fee for all pre-approved segment/card against SOD, Govt.
Officials, Bangladesh Bank, TITAS/WASA/DESA/DESCO/NESCO, all university & College, Doctors, HR/Accounts/IT Personnel, Key
Personnel of Corporate Office or equivalent and 100% concession facilities on Bankers and NBFI, complimentary card, 24/7 Contact
Centre support, payment facility through NPSB, BEFTN and midland online- a robust internet banking facility to pay your monthly credit
card bill amount without visiting a branch.

MDB VISA Debit Card:

MDB VISA Debit Card will allow customers anytime, anywhere access to their savings/ current account at Midland Bank with a single swipe.
Over and above, MDB VISA debit Card is giving customers the flexibility of use in Bangladesh only and can be used through POS terminals
and ATMs and all transactions will be 100% authorized through online.

MDB VISA Prepaid Card:

MDB Prepaid Card, denominated either in local currency or in US dollar, available at the counter of all branches of Midland Bank PLC. for
selling this card to MDB’s customer and non MDB’s customer. This is a dual currency card, meaning it is accepted in abroad to make
foreign trip hassle-free and convenient. This prepaid card can be used to withdraw cash and make purchase over millions of merchant
establishments displaying Visa logo. It gives 24-hour access to cardholder’s money. Cardholder can top-up this card through NPSB,
BEFTN, Rocket and midland online without visiting a branch.

VRM Software:
The implementation of Visa Risk Management (VRM) Software by Midland Bank represents a proactive approach to safeguarding
transactions and protecting against potential fraud risks. With VRM in place, the bank can effectively monitor and analyze transaction data
in real-time, enabling swift detection and response to suspicious activities. This advanced software enhances security measures, ensuring
a secure and seamless payment experience for customers while upholding the integrity of the banking system. Midland Bank's adoption
of VRM underscores its commitment to leveraging cutting-edge technology to mitigate risks and maintain trust in the digital payment
ecosystem.

Bangla QR:
Midland Bank's adoption of Bangla QR technology marks a pivotal step towards digitizing payments and fostering financial inclusion
across Bangladesh. By promoting cashless transactions through app-based Bangla QR, the bank empowers customers with convenient
and secure payment options. Offering a 10% instant cashback further incentivizes adoption, driving widespread acceptance of digital
payments and accelerating the nation's journey towards a cashless society. This initiative exemplifies Midland Bank's commitment to
leveraging innovative solutions to propel economic growth and create a more connected, technologically advanced Bangladesh.

e-Alert:
Midland Bank has introduced a transaction alert via email where cardholders get the email of available balance when a transaction made
on your MDB VISA card. For keeping the transaction record, e-alert is very important and subsequently it is a security measure to prevent
fraudulent activities conducted on MDB Card by unauthorized parties.

Default e-commerce set up in Midland Bank. Now a cardholder can enjoy the full local e-commerce facility without any interruption. For
international transaction cardholder can enjoy his/her full endorsement limit as per Bangladesh Bank guideline.

Instant Prepaid Card top-up through Rocket:

Midland Bank has introduced the instant top-up to Midland Bank Prepaid Card through country’s one of the largest MFS “Rocket”.

Virtual Card
Midland Bank is offering virtual Prepaid Card through app. Through this facility customers can create a virtual card upon his main card and
provide the newly created cards number to any other like his friend or relative to do transaction for a particular period of time and allocate
an amount from his main cards balance.

midland online Upgrade: View Transaction Summaries, Credit Card Statements Instantly.

Midland Bank has introduced a significant enhancement to its midland online platform, enabling users to access transaction summaries
and credit card statements with unprecedented ease. Previously, such information was not readily available, but with this update,
customers can conveniently view detailed transaction summaries and statements directly through the online portal. This empowers users
with greater visibility and control over their finances, allowing them to track their spending, monitor account activity, and manage their
credit card usage more effectively. Midland Bank's commitment to enhancing digital banking experiences underscores its dedication to
meeting customer needs and delivering innovative solutions that prioritize convenience and accessibility.

Performance overview by Different Divisions/ Departments

Midland Bank PLC.
71 Annual Report 2023
Debit Card Block/Unblock through midland online: proactive approach to enhancing customer relationships and
The bank's ongoing efforts to enable debit card block/unblock streamlining operations. By leveraging CRM technology, the bank
functionality through the midland online app demonstrate a aims to better understand customer needs, personalize
commitment to enhancing customer control and security. interactions, and improve service delivery. This strategic initiative
underscores Midland's commitment to harnessing data-driven
Seamless Banking at Your Fingertips: Request Your Debit Card insights to drive business growth and foster long-term customer
Hassle-Free Through midland online! With the latest upgrade to loyalty. With CRM deployment, Midland Bank positions itself to
midland online, customers can now effortlessly place requests for adapt swiftly to market dynamics while providing tailored solutions
their debit cards directly through the platform. Say goodbye to that resonate with its diverse customer base.
lengthy processes and paperwork—simply log in to midland online,
submit your request, and get ready to enjoy convenient banking at Signature Card:
its finest Midland Bank's upcoming launch of the Signature Card signifies a
new milestone in their product offerings, promising customers
New Initiatives: exclusive benefits and privileges.

Friction-Free Banking: ATM Reconciliation software:

Midland Bank Converts Prepaid Card USD Balances to BDT, Additionally, the planned acquisition of ATM reconciliation
Streamlining Transactions Midland Bank's recent conversion of software underscores Midland's focus on operational efficiency
Prepaid card USD balances to BDT currency marks a significant and accuracy in managing cash transactions.
step towards simplifying transactions. With both BDT and USD
transactions now occurring in a single currency, customers enjoy a Complain Management Software:
seamless banking experience without the hassle of managing Furthermore, the investment in Complaint Management Software
multiple currencies. reflects the bank's dedication to promptly addressing customer
feedback and improving service quality across divisions and
Enhanced Security: branches. These initiatives collectively reinforce Midland Bank's
Midland Bank Achieves VISA 3DS 2.2.0 Version Certification commitment to innovation and customer-centricity in the
Midland Bank proudly announces its certification with VISA 3DS ever-evolving banking landscape.
2.2.0 Version, ensuring enhanced security measures for online
transactions. This certification underscores the bank's Real time card payment through Banch
commitment to providing customers with a safe and secure Midland Bank's implementation of real-time card payments
payment environment. through the branch channel marks a significant enhancement in
customer convenience and transaction efficiency. Previously, the
Streamlined Processes: delay in payment processing posed challenges for customers in
Midland Bank Automates Card Information Upload in Corporate accessing their limits promptly. However, with this new release,
Portal Say goodbye to manual uploads! Midland Bank introduces customers can now enjoy the flexibility of utilizing their limits
an API-driven solution for automatically uploading Debit, Credit, instantly following payments made through branch transactions.
and Prepaid Cards information into the corporate portal. This This upgradation not only streamlines the payment process but
automation streamlines processes, saving time and improving also empowers customers with immediate access to their available
efficiency for corporate clients. funds, facilitating smoother and more seamless banking
experiences. Midland Bank's commitment to leveraging
Efficiency Boost: technology to improve service delivery underscores its dedication
Midland Bank Implements SMS Tagging Automation in CMS to meeting the evolving needs of its clientele.
Midland Bank revolutionizes customer service with the automation
of SMS tagging in the Card Management System (CMS). By ATM low balance notification
eliminating manual processes, Midland Bank reduces turnaround Midland Bank is gearing up to introduce ATM low balance
time (TAT) and ensures prompt and accurate tagging of customer notifications through SMS, a proactive measure to prevent ATMs
SMS preferences. from running out of cash. With this feature, the bank's software will
monitor ATM balances in real-time, triggering notifications when
Upcoming Facilities: balances fall below a certain threshold. Additionally, the software
will display these notifications on the screens of ATMs with low
POS Acquiring balances, alerting customers and ensuring they are informed
Midland Bank's foray into the POS business marks a strategic before initiating transactions. This upcoming enhancement
expansion into the realm of electronic payments. With its exemplifies Midland Bank's commitment to leveraging technology
established reputation for reliability and customer service, Midland for improved ATM management and enhanced customer
aims to offer seamless transaction experiences for merchants and experience.
consumers alike. Leveraging cutting-edge technology, the bank
plans to provide secure, efficient, and convenient POS solutions Real time Credit Card USD Payment:
tailored to meet the evolving needs of modern commerce. This Midland Bank is set to introduce real-time USD payments for credit
move underscores Midland's commitment to staying at the cards, offering customers the advantage of instant transactions.
forefront of financial innovation and driving economic growth With this new feature, customers can enjoy the convenience of
through enhanced payment infrastructure. immediate USD payments, eliminating delays and enhancing their
banking experience. By streamlining the payment process, Midland
CRM Deployment: Bank aims to provide greater flexibility and efficiency to its credit
The deployment of CRM machines by Midland Bank signifies a card users, ensuring timely and seamless transactions in USD. This

Performance overview by Different Divisions/ Departments

Midland Bank PLC.
72 Annual Report 2023
real-time capability reflects the bank's commitment to meeting Saalam’, we are fulfilling our promise of being responsive to our
customer needs and delivering innovative solutions in the dynamic customer needs. Through this offering, customers can avail all
financial landscape. Shariah banking products through its Gulshan Islamic Banking
Window and avail the service from any of its branches including the
Single monitoring window Bank’s digital channels. Islamic Banking plays an important role in
Midland Bank is on the verge of establishing a single monitoring the economy and the Bank introduced Shariah Banking to cater
window that consolidates all transactional activities, including the need of the growing Shariah conscious population of the
those for the contact center and other users. This unified platform Country. Keeping the current economic challenges in mind, from
will streamline operations by providing a centralized view of the very beginning we tried to make `MDB Saalam’ a technology
transactions, eliminating the need to navigate through multiple oriented service so that customers can avail Shariah based
software systems. By condensing various functionalities into one services by using customized free internet banking facility and
intuitive interface, the bank aims to enhance operational efficiency mobile applications. Our customers can open Shariah complied
and facilitate smoother workflows. This initiative underscores Savings Account, Monthly Deposit Scheme, Hajj Deposit Scheme,
Midland Bank's commitment to harnessing technology to simplify Double Benefit Plus Scheme and Term Deposit by using our digital
processes and deliver a seamless banking experience for both platform at anytime, anywhere.
customers and internal stakeholders. MDB Saalam has become very popular among customers. On
December 31, 2023 MDB Saalam recorded continuous growth in all
ISLAMI BANKING DEPARTMENT (MDB SAALAM) segments. Total number of accounts under Islami Banking
A dedicated Islamic Banking window of the Bank, MDB Saalam, increased to 5615 in the year 2023 from 3876 of 2022. On
was established with the aim to meet the unique needs of its December 31, 2023 deposit portfolio of ‘MDB Saalam’ stood at BDT
customers and to help develop the nation’s economy. The 356.80 crore and investment portfolio at BDT 254.43 crore, while
platform was formally launched by Mrs. Nilufer Zafarullah, registering operating profit of BDT 1.15 crore.
Honourable Chairperson of the Bank on 23rd April, 2020 via video
conference. MDB Saalam comprises a wide range of deposit and investment
products which are designed in such a way that they meet the
At Midland Bank PLC. we realize that many of our customers want demand of our customers and also complied with Shariah
products that are Shariah compliant, and by introducing ‘MDB principles.

MDB Islami Banking Window

(MDB Saalam)

Deposit midland online & MCM Investment

MDB Saalam Current Deposit MDB Saalam Consumer Finance

Retail MDB Saalam Savings Account MDB Saalam Auto Finance Retail
MDB Saalam Team Deposit
Banking MDB Saalam Bike Finance Banking
MDB Saalam Monthly Scheme
MDB Saalam Home Finance
MDB Saalam Hajj Savings Scheme
MDB Saalam Bai Muajjal Secured
MDB Saalam e-Saver Account Finance
MDB Saalam Probashi Savings Account
MDB Saalam Corporate Payroll Package
MDB Saalam Digital Savings Account
MDB Saalam Digital Montly Savings Scheme
MDB Saalam Digital Hajj Savings Scheme
MDB Saalam Digital Team Deposit Account
MDB Saalam Family Support
MDB Saalam Digital Family Support
MDB Saalam Quarterly Consumer Team Deposit
MDB Saalam Double Benefit Plus Scheme
MDB Saalam Digital Double Benefit Plus Scheme

MDB Saalam Abiram Account

SME MDB Saalam SME Shirkatul Melk
SME
MDB Saalam Abiram Plus Account
MDB Saalam SME Bai Muajjal
MDB Saalam Sthaee
MDB Saalam NGO Link
MDB Saalam Bai Muajjal Secured
Finance -SME

MDB Saalam Current Deposit- Corporate MDB Saalam Murabaha Local Purchase
Institutional Institutional
MDB Saalam SND-Corporate MDB Saalam Hire Purchase Shirkat-ul- Melk Banking
Banking
MDB Saalam Term Deposit-Corporate MDB Saalam Quardh Against Local Bill

MDB Saalam Express Corporate Account MDB Saalam Murabaha Trust Receipt

MDB Saalam Quarterly Corporate Term Deposit

Performance overview by Different Divisions/ Departments

Midland Bank PLC.
73 Annual Report 2023
CMSME FINANCING INTERNATIONAL DIVISION
Cottage, Micro, Small and Medium sized enterprise, apart from In 2023, the correspondent banking business environment
agricultural sector one of the biggest employers of Bangladesh experienced both challenge and opportunities. After the pandemic
economy and its combined contribution to GDP is higher than led to a surge in demand from correspondent banks to facilitate
large enterprises. As such, this segment is considered as the trade business. But the impact of Russia-Ukraine war and later on
growth engine of the country’s economy. the price hike of essentials commodities and supply chain
disruption led to a global downturn, with persistent uptrend
inflationary pressure hurting most of the countries. For this availing
In view of the immense importance and business potential of this trade finance facilities became costly and difficult.
sector, MDB bestows top priority to develop SME sector through
extending short term financing to wide range of manufacturing and With this backdrop MDB International Division were able to support
service based enterprise. MDB launched ECSP & SME Division on the MDB Trade and Supply Chain Department. MDB ID adhered to
September 2013 to deal with business of this segment. The Division the Risk Based Approach for correspondent banking and completed
developed/structured a range of loan products to cater the due diligence on all correspondent. The total number of
requirement of different business sub-segments. Relationship Management Application (RMAs) currently maintained
is 154, of which 101 are with foreign banks and 53 are with local banks.
Bangladesh Bank envisaged priority in segments like women Cross border payments are routed through 17 NOSTRO Accounts
entrepreneurship, micro enterprise, cottage industries, under with different foreign banks denominated in different foreign
currencies.
privileged groups, 3rd gender, ethnic groups etc. with refinancing
opportunity at lower rate of interest. MDB disbursed loan of Tk.
Foreign Trade Services
91.47 crore to the women entrepreneur during the year 2023 which MDB placed significant importance on maintaining and growing of
is an outstanding achievement for the Bank. its trade business throughout 2023. Management, business teams,
and trade operation teams all worked together to ensure the
To facilitate CMSME entrepreneurs in a broader way, MDB has sustainability and growth of the trade business.
signed several agreements with Bangladesh Bank for refinancing
under Women Entrepreneurs / New Entrepreneurs / Agro-based MDB’s import volume was USD187.88 million in the year 2023. The
Industry / Green Finance and Start-up Financing. We also signed Bank’s import business facilitation consists of items like capital
Pre-Finance Scheme of Bangladesh Bank to facilitate CMSME machinery, industrial raw materials, consumer goods, etc. On the
entrepreneurs. Besides, we signed agreement with Bangladesh other hand, MDB’s export volume was USD169.81 million in the year
Bank on “Second Small & Medium Sized Enterprise Development 2023. The Bank’s export business facilitation consists of
ready-made garments, frozen foods, jute products, steel scrap etc.
Project (SMESPD-2)” scheme. Under this refinancing project we will
be able to finance the micro/small scale enterprises outside Dhaka Despite the challenges posted by the Russia-Ukraine war in
& Chittagong City Corporation area with comparative lower rate. February 2022 and resulting global supply chain disruption, price
This financing scheme aligns with MDB’s strategy to operate in hike, depleting forex reserve, and stringent policies, MDB’s trade
diverse geographical locations as majority of the branches are set business was 6% positive compared to year 2022.
in rural areas where Agent Banking Centers have also been
established to serve potential clients in the remote areas. SME NRB & Remittance Service
Division envisages to enhance its portfolio mainly in the Over the years, wage earner’s remittances has emerged as the key
Bangladesh Bank designated priority sectors keeping in mind the towards economic growth and poverty reduction in Bangladesh.
geographical and business segment diversification. Midland Bank’s NRB Wage Earners Service is focused to cater a
comprehensive banking solutions to NRB diaspora all over the world
and to make the remittance service more accessible to the doorsteps
Agricultural Credit of the beneficiaries living in the remotest parts of the country.
Agriculture is the mainstay of the economy of Bangladesh which
contributes a major portion of GDP and importance of this sector Total amount of wage remittance receipt during 2023 stood at
cannot be ignored. Now various agribusinesses have emerged USD19.21 million. MDB NRB division is committed to embracing
under different sub-sectors and are contributing even in the sphere technology and being customer centric. This division is expanding its
of export earnings. Generically agriculture sector comprises of services to include all types of inbound and outbound remittances, in
crops, horticulture, livestock and forestry with crop sub-sector addition to its primary focus on wage-earner remittances. To this
being the predominant. end, MDB is working tirelessly to improve services, catering to the
needs of both senders and beneficiaries alike.
In view of the imminence importance of agriculture sector, Midland
Bank allowed more than 2.5% of its portfolio to crop sector at Off-shore Banking Unit
Off-shore banking business is primarily based on borrowing,
convenient rate through Non-government organization as per BB
making effective Liquidity Management and Asset Liability
set target. Besides, substantial credit facilities have also been Management is crucial for success in OBU business. The primary
allowed to non-crop sectors like pisciculture, livestock etc. MDB source of borrowing are domestic banking and international
also plans to deliver Agri credit facility through their own markets. Locally, the Banks Domestic Business Unit (DBU) and
distribution channel. other domestic bank’s OBU are the main sources. Internationally,
Foreign Financial Institute and Development Finance Institute are
For the fiscal Year 2022-2023 (based on July to June), MDB’s active source of borrowing. At the end of 2023 MDB OBU has an
disbursement target in agri lending was Tk. 84.00 crore. MDB achieved asset size of USD 30.99 Million. MDB OBU maintained an overall
its target for the financial year 2022-2023 by 100.47% & Special fund utilization matrix at a 99% level throughout 2023.
Agriculture Credit at 4% concessional Interest Rate by 97.62%.

Performance overview by Different Divisions/ Departments

Midland Bank PLC.
74 Annual Report 2023
TREASURY DIVISION Asset Liability Management Desk: Midland Bank has a
highly efficient ALM desk capable of providing robust and
Market Outlook 2024 on-time report as well as market intelligence. This desk provides
Year 2023 was a year of volatility and challenges for Treasury analysis, instruction and guidance in the area of asset liability
wholesale market because of inflationary pressure and banking management to promote proper balance sheet management as
sector liquidity crunch. Money market liquidity experienced well as financial strength and wellbeing of the bank.
compression and instability during the last half of the year.
Commercial Banks had to take support from Bangladesh Bank in Equity Investment Desk: Midland Bank started taking
the form of Repurchase Agreement (Repo) and Assured Liquidity exposure in Secondary equity market from 2017. The desk, with
Support (ALS) during the period. In the second half of the year, in-depth market knowledge and long-term investment
due to various news on banking sector, economy experience orientation, was able to generate handsome return from
large deposit withdrawal, resulting in tight money market secondary equity market.
situation. Current account deficit turned into surplus in the
second half of the year because of reduced import resulting from Midland Bank Treasury Performance in 2024
rapid currency devaluation. Yield of government Bill-Bond rate Midland Bank treasury deliberately runs trading book with a view
experienced upward movement due to lower liquidity, high to earn profit by investing different asset classes of longer term
demand for funds from the private sector, increased government and funding this trading book by borrowing on shorter term. In
borrowing and higher rate expectation. USD/BDT rate 2023, in midst of FX market volatility Midland bank attained total
depreciated at a faster pace due to higher import payment and foreign exchange transaction volume was $9,305 million. Also,
widening of current and capital account deficit. Midland Bank treasury was very active in secondary bond trading.
Midland Bank attained 7th position in terms of total trade volume
Treasury forecasts wholesale market liquidity to remain stressed in in secondary bond market in 2022-23 which was Tk. 48,951 million
midst of contractionary monetary policy and increasing representing 4.49% of the entire market.
government borrowing from the banking sector. Uncertainty
remains regarding the direction FX reserves, however current Treasury Priorities in 2023
account surplus and stabilizing currency exchange rates provide
positive indication towards improvement in overall balance of • Enhancing the capabilities of corporate sales desk to tap
payment and FX reserve. Treasury Yield curve is expected to exhibit foreign exchange business and enhance cross currency
an upward shift in line with central bank’s indicative hawkish selling capabilities.
approach to tame inflation. • Exploring new opportunities and provide tailored solution to
customer by offering new derivative products.
Midland Bank Treasury • Managing balance sheet with specific focus, considering
Midland Bank has a committed and well trained treasury team upward interest rate movement and business requirements.
capable of providing all kind of treasury solutions within its • Automating Treasury activities by introducing Treasury
capacity. Currently, Midland Bank Treasury Division consists of Module in the bank.
five separate desks: • Providing more focus in secondary Fixed income and Equity market.

Money Market Desk INFORMATION TECHNOLOGY

Information Technology in Banks has greatly contributed to
Fixed Income and Investment Desk improving operational efficiency, transparency, speed and accuracy
Treasury

in banking transactions. The customers are benefited by getting a

Foriegn Exchange Desk number of options for doing banking trough a different delivery
channels at their convenience.
Asset Liability Management Desk
The banking industry is evolving very quickly from the traditional
Equity Investment Desk brick and mortar banks to digital banks. As the internet era
expanded, the banking channels and models have gone a long way
Money Market Desk: Midland Bank money market desk is one far beyond the human imagination. The internet has opened the
of the most active and efficient desk in the inter-bank market. gates towards digital transformation and innovation and
Dealers exercise all kinds of money market products available in completely revolutionized the banking industry by empowering
market, including- Call Money, Term Money, Swap, ALS, Repo and banks to serve their customers in a better way thereby reducing
Reverse Repo etc. cost and improving banking experience.

Fixed Income & Investment Desk: Midland Bank Fixed On the changed scenario, MDB digitalized banking services for
Income & Investment Desk is responsible for bank’s investment both individual and corporate customers that allow customers to
in various Government securities like- Treasury Bills and Bonds, do contactless banking without visiting any branch/sub-branch/
and other financial product available in market like- Commercial agents. Further to that, the bank connected with modern payment
paper, Subordinated debt, Preference Share etc. This desk is an systems of the country and introduced technology enabled
active participant in secondary market trading of Government systems, expediting digital experience of our clients, keeping them
securities. Being a Primary Dealer (PD), this desk also performs all abreast of changing scenarios. Last year, we have introduced
the responsibilities of primary dealer. Digital Loan to customers through our midland online. As a result,
our customer shall fulfill their urgent needs from home. Besides, to
Foreign Exchange Desk: Midland Bank Treasury is capable of promote cashless transactions in the vision of “Smart Bangladesh”,
vanilla and derivatives products in FX market. Midland bank is we have offered merchant payment through Bangla QR to make
very active in foreign exchange market, both- in inter-bank and the payment easy, hassle-free and cashless.
with corporate customers.

Performance overview by Different Divisions/ Departments

Midland Bank PLC.
75 Annual Report 2023
At past, we have connected with new payments systems of MDB never sleeps
Bangladesh Bank, “Binimoy”, an interoperable digital transaction We have established a 24/7 Contact Centre to provide the best
platform, using which customers small do transaction between customer service and track any complaint or opinion of the customers.
Banks, MISs, PSPs, PSOs etc. Moreover, we have tied up with We are one call away to solve any queries any time on 16596.
leading mobile wallet service in the country, to transfer/receive
money from/to customer’s bank account. In addition, we have Key Priority in 2024
allowed our customers to manage his/her card transaction While ensuring customer service at MDB, we believe, customer
through midland online. The new features added value with our delight depends on the efficient delivery of products and services
current features getting account statement maintain inter & intra within expected timelines. Organizations effectiveness, efficiency
bank fund transfer, pay utility and credit card bills. and productivity depend on how & when we are delivering to our
valued customers. With a vision of becoming the fastest bank in
Besides, to meet our ICT Policies and procedures with international terms of delivering service in the financial industry of Bangladesh,
standard last year, we have achieved ISO 27001:2013. Moreover, MDB will implement its robust customer service standard and
bank has achieved PCI-DSS certification to manage card related customer awareness strategy effectively.
process and system as per international standard. Furthermore, we
have meet compliance of Swift CSP audit in past year. We believe, CUSTOMER SERVICES AND COMPLAINT MANAGEMENT
the above achievements should be impactful on customer’s To exclusively and professionally address customer complaint,
confidence on Midland Bank, as we are continuously receiving MDB developed Customer Services & Complaint Management
from them. (CS&CM) Cell which takes a relentless effort in establishing a
customer-friendly environment by resolving any complain from the
Information Technology in Banks has greatly contributed to customer through prompt analysis, investigation and initiating
improving operational efficiency, transparency, speed and remedial measures. Besides various preemptive measures have
accuracy in banking transactions. The customers are benefited by been initiated e.g. training sessions for the officials of the Bank,
getting a number of options for doing banking trough a different Information Technology enabled services facilities, customer
delivery channels at their convenience. awareness program for continuously improving our services and
also our customers are gaining more confidence on us, which
The banking industry is evolving very quickly from the traditional positioned MDB as a Bank of their first choice. There is also an
brick and mortar banks to digital banks. As the internet era email address like [email protected]
expanded, the banking channels and models have gone a long way through which customers can send their complaints on our
far beyond the human imagination. The internet has opened the services instantly. CS&CM functions mainly are such as ethical
gates towards digital transformation and innovation and principles of customer service development, code of conduct
completely revolutionized the banking industry by empowering formulation, service standard enactment, customer charter
banks to serve their customers in a better way thereby reducing development, customer awareness building, root cause analysis of
cost and improving banking experience. any complaint, reporting to the concerned authority and corrective
measures taking against complaints.
On the changed scenario, MDB digitalized banking services for
both individual and corporate customers that allow customers to We received only handful number of complaints on different
do contactless banking without visiting any category /segments, all of these addressed properly which depicts
branch/sub-branch/agents. Further to that, the bank connected our satisfactory service quality and level of customer satisfaction.
with modern payment systems of country and introduced
technology enabled systems, expediting digital experience of our HUMAN RESOURCES MANAGEMENT DIVISION
clients, keeping them abreast of changing scenarios. Last year, we The Human Resources Management Division (HRMD) plays a
have introduced Digital Loan to customers through our midland crucial role responsible for managing the people who work in
online. As a result, our customer shall fulfill their urgent needs from Midland Bank Limited (MDB). The main objective of HRMD is to
home. Besides, to promote cashless transactions in the vision of ensure effective utilization of human capital in alignment with
“Smart Bangladesh”, we have offered merchant payment through MDB’s goals and objectives. The division is involved in a wide range
Bangla QR to make the payment easy, hassle-free and cashless. of functions which includes the following:
1. Recruitment & Selection
At past, we have connected with new payments systems of 2. Talent Development
Bangladesh Bank, “Binimoy”, an interoperable digital transaction 3. Performance Management
platform, using which customers small do transaction between 4. Payroll & Reward Management
Banks, MISs, PSPs, PSOs etc. Moreover, we have tied up with 5. HRM Operations
leading mobile wallet service in the country, to transfer/receive
money from/to customer’s bank account. In addition, we have In a nutshell, HRMD plays a vital role in the strategic management
allowed our customers to manage his/her card transaction of MDB's human capital. They are responsible for attracting,
through midland online. The new features added value with our developing, and retaining talented individuals, as well as creating a
current features getting account statement maintain inter & intra positive work environment that supports productivity and
bank fund transfer, pay utility and credit card bills. organizational success.
Besides, to meet our ICT Policies and procedures with international Recruitment & Orientation
standard last year, we have achieved ISO 27001:2013. Moreover, bank Recruitment and orientation plays an essential function within
has achieved PCI-DSS certification to manage card related process MDB. The recruitment process involves attracting and selecting
and system as per international standard. Furthermore, we have qualified candidates to fill open positions within the organization.
meet compliance of Swift CSP audit in past year. We believe, the Employee onboarding refers to the process of integrating and
above achievements should be impactful on customer’s confidence orienting new employees into an organization and its culture.
on Midland Bank, as we are continuously receiving from them. The key aspects of recruitment process of MDB are as follows:

Performance overview by Different Divisions/ Departments

Midland Bank PLC.
76 Annual Report 2023
 1. Job Analysis: The HRMD identifies the specific requirements periodically to review performance against established goals and
and responsibilities of the vacant position. This includes provide a comprehensive evaluation.
determining the necessary skills, qualifications, and
experience needed for the role. Performance management promotes transparency, accountability,
2. Resume Sourcing: The HRMD sources resumes from various and a focus on continuous improvement. It helps employees
channels, such as online job portals, internal employee understand the expectations placed upon them, receive regular
references and job fairs to attract potential candidates. feedback, and work towards their development goals. By fostering
3. Screening and Shortlisting: HRMD reviews the resumes and a culture of performance excellence, organizations can drive
applications received to identify candidates who meet the individual and team performance, achieve strategic objectives, and
job requirements. We conduct preliminary assessments to create a positive work environment. We promote a culture of
further narrow down the pool of applicants. For fresh continuous feedback, encouraging all the people to have regular
graduates, written exams are conducted before preliminary performance conversations with their supervisors throughout the
or final interview in order to evaluate the quality of the year. This happens in addition to the annual performance review
candidates. process that applies to all permanent and contractual employees.
4. Interviews and Selection: The HRMD schedules interviews
with shortlisted candidates to assess their qualifications, Payroll & Reward Management
skills, and suitability for the position. We also conduct Payroll and reward management refers to the processes and
multiple rounds of interviews, including preliminary and practices involved in administering employee compensation,
panel interviews, to select the most qualified candidate. benefits, and rewards within MDB. It encompasses various
activities, including calculating and disbursing salaries, managing
The key aspects of orientation process of MDB are as follows: employee benefits, and implementing reward programs to
1. Pre-Boarding: Before a new employee joins the organization, recognize and motivate employees. The key components of
HRMD starts the onboarding process by providing them with payroll and reward management of MDB are as follows:
important documents, such as employee information
booklet, pre-employment medical check-up forwarding and 1. Payroll Administration: This involves accurately calculating
check list for joining the Bank. This helps the employee feel and processing employees' salaries, bonuses, arears and
prepared and welcomed from the start. deductions.
2. Orientation: On the first day of joining, employees are 2. Benefits Administration: This entails managing employee
provided with job rotation and posting letter. The posting benefits programs, such as health benefits, retirement plans
letter mentions the employee’s place of posting and the job and other employee perks.
rotation is a program that certain employees undergo for a 3. Compensation Management: This involves determining and
specific period. structuring employee compensation packages, including
base salaries, incentives and performance-based rewards. It
Talent Development may include conducting market surveys and analysis to
Talent development are crucial component for the employees of ensure competitive compensation practices.
MDB as they help individuals to enhance their capabilities and 4. Reward and Recognition Programs: This refers to establishing
acquire new skills that are necessary for their growth and and managing programs to recognize and reward employee
development. Effective training and skill development programs performance, achievements, and contributions.
are well-structured and tailored to the specific needs of individuals
and the Bank. The programs are designed to align with MDB's Effective payroll and reward management helps organizations
strategic objectives and goals, as well as the individual's attract and retain top talent, motivate employees, and ensure fair
developmental goals and career aspirations. and competitive compensation. It also plays a crucial role in
maintaining employee satisfaction and engagement, ultimately
1. On-The-Job Training: This type of training involves contributing to organizational success. MDB maintains a steady
facilitating learning through hands-on experience, and competitive payroll and reward management process in entire
observation, and coaching. lifecycle of any employee among the pan industry. At MDB, we
2. Classroom Training: This includes formal classroom/virtual provide a competitive package, yearly incentive and increment
training sessions and workshops. based on performance appraisal. In addition to these, MDB has
3. Mentoring and Coaching: Mentors and coaches offer other reward activities for the employees, such as Banking
guidance, support, and feedback to individuals seeking to Diploma Completion, Integrity and Best Performance Award.
enhance their skills and knowledge.
HRM Operations
By providing effective training and skill development programs, HRM Operations refer to the day-to-day activities involved in
employees can acquire the necessary skills and knowledge to managing employees within MDB. These activities have a
perform their job functions at a high level, contribute to MDB's significant impact on employee satisfaction, motivation, and
success, and pursue their career goals. engagement, which ultimately affect organizational performance.
Some of the common HRM operations include:
Performance Management 1. Employee relations: This includes handling employee
Performance management is a systematic process that involves
grievances, complaints, and conflicts, as well as fostering a
setting expectations, monitoring and assessing performance,
positive work environment and employment relations.
providing feedback, and facilitating overall improvement. It aims to
2. Legal compliance: HRM operations must comply with laws
align individual and team goals with organizational objectives and
and regulations related to employment, including labor
ensure that employees are performing at their best. Regular
laws, anti-discrimination laws, and health and safety
monitoring and evaluation of performance occur, using both
regulations.
qualitative and quantitative measures to assess progress and
3. HRIS: This includes managing employee information,
achievement. Formal assessments or appraisals are conducted
maintaining databases, and ensuring the security and
confidentiality of employee data.
Performance overview by Different Divisions/ Departments
Midland Bank PLC.
77 Annual Report 2023
Effective HRM operations help organizations attract, retain, and • Executing security (Mortgage, RJSC filing, registration with
develop top talent, create a positive work environment, and align authorities, share lien, etc).
employees with the organization's goals and objectives. It also • Setting up limits, execute disbursements, transactions, and
helps ensure legal compliance, maintain employee satisfaction and maintaining loan information.
engagement, and ultimately contribute to organizational success. • Preparing Loan Documentation Checklist and MIS for
The Bank’s Service Rules & Regulation is designed to recruit the deferrals, insurance, land tax, etc.
finest people, provide equal opportunities and create a • Custodian of loan files and vault management.
comprehensive culture, in line with our values and in support of our
long-term success. They also reflect relevant employment law  Loan maintenance:
according to the guidelines of our Central Bank and Government. • Checking of appropriate charging of interest, penal fees, and
We expect our people to treat their colleagues with dignity and various charges.
respect, and handle discrimination with zero tolerance, bullying, • Managing interest suspense.
harassment or victimization on any grounds. Other HRM • Executing provisions.
Operational works includes separation of employees, transfer, leave • Maintaining loan classification status in the bank's CBS.
management, attendance management, contract renewal of • Input mortgage data into the "Land Mortgage Database
contractual employees, issue various letters to employees and so on. Automation" of the Ministry of Land.

We appreciate our employees’ creativity and innovation for  Reporting:

improving the work process of the Bank. Employees will be • Preparing Credit Limit (CL) reports and submitting them to
provided the work life balance, respect and caring attitude within the Bangladesh Bank.
the organization that they are expected to share externally with • Creating and submitting CIB MIS reports to the Bangladesh
every customer as a Brand Ambassador of the Bank. Bank.
• Regulatory reporting.
CREDIT ADMINISTRATION DIVISION • Maintaining covenants MIS and ensuring compliance.
The Credit Administration Division (CAD) was established in 2014
with aim to establishing the values of credit discipline within MDB  Audit & Compliance:
which contributes to meet the requirements of risk possession and • Coordinating with audit teams (Regulatory, External &
accountabilities, and also ensures positive approach to the Internal).
implementation of all stipulated laws and regulations as imposed • Ensuring compliance and addressing operational lapses.
by Bangladesh Bank and MDB. The division operates in a
centralized module with two offices in Dhaka and Chattogram. LEGAL DIVISION
Business and Law are very much interconnected with each other
CAD plays a pivotal role in efficient management of loan-related as all business enterprises of a country operate within country’s
functions across the various portfolios of the MDB, such as legal regime. Similarly, all financial Institutions have to abide by all
Corporate, SME, and Retail. CAD is responsible for managing loan the rules and regulations of the country in terms of business
documentation, loan related security implementation, limit operations and internal governance to be recognized as compliant.
activation, disbursement, settlement and liability calculation of Legal Division of Midland Bank PLC. is entrusted to ensure the legal
entire loan and advance portfolio. Besides, CAD generate and compliance of the bank through legal support to all
maintain various MIS & Report in order to submit to regulator and Departments/Divisions and Branches and maintaining liaison with
MDB management which helps in decision making as well as external Lawyers and different regulatory authorities, such as;
strategy formulation. Bangladesh Bank, Land Record & Survey Department, Ministry of
Finance, Judiciary, Anti-Corruption Commission, CID, Police, Central
CAD significantly contributed to the digitization of loan Intelligence Cell etc.
documentation processes, CBS (Core Banking System) upgrades,
and digital archival. Additionally, CAD is actively involved in the Key status of 2023:
"Land Mortgage Database Automation" project initiated by the Legal Division of Midland Bank PLC. has been taking appropriate
Ministry of Land in 2022 under the "E-Mutation" system. The legal steps for quick disposal of cases and suits, which have
project aims to automate land mortgage data and is continuing the remained pending before the Learned Court over the years. Under
task by inputting data when mortgage to be executed and deleting current scenario where default loan situation of the country is
mortgage data from system as redemption to be executed. deteriorating day by day and majority of the customers are willfully
defaulting their loan repayment, Legal Division has a very
The key functions of CAD: significant role to play to meaningfully contribute to the
 Pre-approval functions: profitability of the Bank. Like other years, in 2023 also, there have
• Coordinating valuation and obtaining valuation reports from been quite a significant development in legal area of Midland Bank
enlisted surveyors. PLC. Total pending suits/cases. no.82, suit value BDT.141.52 crore,
• Obtaining legal opinions for proposed collaterals from disposed 35 suits/case and recovered BDT 4.42 crore under suit
enlisted lawyers. accounts in this year. In addition to that, Bank has obtained 03
• Collecting Credit Information Bureau (CIB) reports. (three) ownership/possession certificates under section 33(5) and
• Searching property documents through enlisted lawyers. 33(7) of Artha Rin Adalat Ain-2003.
• Performing and cross-checking of third party legal opinion
and third party valuation, and also coordinate with ANTI-MONEY LAUNDERING
concerned parties for resolution. Money laundering is the process by which large amount of illegally
obtained money (from drug trafficking, terrorist activity or other
 Post-approval functions: serious crimes) is given the appearance of having originated from
• Preparing sanction letters. the legitimate source. But in simple terms it is the conversion of
• Preparing facility documents. black money into white money. This takes one back to cleaning the

Performance overview by Different Divisions/ Departments

Midland Bank PLC.
78 Annual Report 2023
huge piles of cash. If done successfully, it allows the criminals to elementary theme of Money Laundering in consistency with
maintain control over their proceeds and ultimately to provide a BFIU Circular-26 dated 16-06-2020, Guidelines Notes on
legitimate cover for their source of income. Money laundering Politically Exposed Persons, Influential Persons, Beneficial
plays a fundamental role in facilitating the ambitions of the drug Owner, Suspicious Transaction Reporting, Countering
trafficker, the terrorist, the organized criminal, the insider dealer, Terrorist Financing & Proliferation Financing and to facilitate
the tax evader as well as the many others who need to avoid the implementation of Money Laundering Prevention Act-2012
kind of attention from the authorities that sudden wealth brings and Anti-Terrorism Act-2009.
from illegal activities. b) Continuous communication with Branches to improve their
AML & CFT compliance culture, identifying needs and
Terrorist Financing and Money Laundering share similarities in the directing Branches as and when needed and responding to
methods used to collect, store and distribute funds, however, in queries of Branches. Making Branches aware of remaining
addition to the proceeds of illegal activity, legitimate funds, watchful for Freeze Orders and Court Orders.
charities and self-financing may also be used to finance terrorism. c) Branches will be made aware of new terms such as Digital
The countering of both terrorism and the Financing of Terrorism is Currency, Shell Companies, Offshore Accounts, Trade Based
a key priority in ensuring a Bank’s safety. Money Laundering and Credit Backed Money Laundering
etc., and how bank will address the challenge and risk of
In an environment where financial crime has become part of our those areas to mitigate the risk of Money Laundering and
daily lives, and the increasing use of tech platforms for all forms of Terrorist Financing
financial transactions has given rise to a significant increase in the d) AML Division has already procured an AML Solution for the
range of methods by which fraud is perpetrated, Anti-Money Bank. This solution after implementation with our Core
Laundering Division of Midland Bank is more than ever focused on Banking System in this year, will help strengthen our
ensuring that our Bank is well equipped with the tools, knowledge Transaction Monitoring and identify any Suspicious
and processes that will enable our Bank to be compliant, be alive Transaction with the minimum effort of the Branch.
to the emerging risks of Money Laundering, and uphold the highest e) In our Central Compliance Committee Meetings AML
professional standards in their work across all areas of regulated Division will continue to address AML Policy related matters
activity. AML Division is committed to extend all type of its and current AML issues highlighting the importance of those
cooperation to the Law and Enforcement Agencies through the and consequences failing to Report and address those.
frame work and guidance of Bangladesh Financial Intelligence Unit f) Branches will be trained both Online and Offline addressing
(BFIU). Our engagement against the fight of Money Laundering and giving importance on Transaction Monitoring,
and Terrorist Financing or any other Financial Crime shall continue Suspicious Transaction Reporting, Trade Based Money
with the effort of each and every Employee and Senior Laundering and Credit Backed Money Laundering.
Management of the Bank. g) Monitoring of Electronic Know Your Customer will be one of
top priorities to address in the year 2024, as there are
Highlights 2023 underlying risk of Money Laundering and Terrorist Financing
a) Central Compliance Committee (CCC) under the supervision and related criminal activities.
of CAMLCO and Deputy Managing Director have met four h) AML Division will do the Due Diligence before establishing
times with the Divisional Heads of Human Resources any Correspondent Banking Relationship and co-ordinate
Division, Operations Division, Retail Distribution Division, with our International Division.
Credit Risk Management Division, International Division to i) Agent Banking Division and Card Division’s clients
address current and all issues of AML during the year 2023. Monitoring will be robust for the year 2024. In our AML
b) We have our own Compliance Programs, Policies and Policy we have focused on the Agent Banking Arena and
Procedures and we are working closely with BFIU and have shall address the issues given the weightage.
been following their instructions meticulously. We have
issued Circulars and instructions to our Branches to comply INTERNAL CONTROL AND COMPLIANCE
the instructions of BFIU. An effective internal control and compliance system have become
c) AML Division have conducted Independent Testing Procedure essential to underpin effective risk management practices and to
on Three Branches and Online Transaction Monitoring of all ensure the smooth performance of the Bank. The Internal Control
Branches is our day to day frame work of AML. and Compliance Division of any Bank acts as the watchdog of the
d) To identify, assess and mitigating ML & TF risk that Banks may Bank's established internal controls and compliances. ICCD of
encounter during the business, to address those we have our MDB is continuously working independently to provide reasonable
own mechanism to assess and consider the risk of customer, assurance regarding the achievement of various internal controls'
products, delivery channels and geographical locations. objectives. The core focus of MDB other than the financial goal is
e) Suspicious Transaction Reporting was done analyzing all to establish a vibrant compliance culture in the Bank, ensuring the
the Transaction in addion, following through the adverse engagement of all officials of the corporate hierarchy and ICCD
media reports. has been entrusted with maximum independence by both Board of
f) AML Division has purchased an AML Solution which will Directors and Management to recognize and assess all of the
help the identification of unusual transaction and will move material risks that could adversely affect the achievement of the
monitoring process faster identifying any Suspicious Bank's goals. ICCD ensures compliance with laws and regulations,
Transaction. policies, and procedures issued by both the bank
Board/Management and the regulators.
Outlook 2024 The principal objectives of internal control include the following:
a) Midland Bank (MDB) is committed to mitigate Anti-Money - Operations objectives: Attainment of the Bank's mission and vision.
Laundering (AML) and Combating Financing of Terrorism - Reporting objectives: Timely, accurate, and comprehensive reporting
(CFT) and devoted to comply with the Local Laws and – both financial and non-financial and internal and external.
Regulations. As its prolongation in the year 2024 MDB will - Compliance objectives: Conducting activities and taking
update its AML & CFT Policy Guidelines keeping the specific actions as per applicable laws and regulations.

Performance overview by Different Divisions/ Departments

Midland Bank PLC.
79 Annual Report 2023
Formation Bank's "Guideline on ICT Security for Banks and Non-Bank
In 2023, ICCD in MDB had three-fold of functions consisting of two Financial Institutions, May 2015" ICCD conducted
separate departments viz. a. Audit and Inspection Department, b. Information System (IS) Audits on all Branches.
Monitoring and Compliance Department. As per Bangladesh • As per the instruction of Bangladesh Bank, ICCD conducted
Bank’s revised guideline on Internal Control & Compliance (BRPD an Audit daily reporting of Foreign Exchange Transactions
Circular No. 03 dated 08.03.2016 and amendment through BRPD of 2022 in the Online Foreign Exchange Transaction
Circular No. 06 dated 04.09.2016), the Head of ICCD of MDB Monitoring System of Bangladesh Bank.
reports his activities and findings to the senior management and • After commencing of Agent Banking business, the Bank has
Head of Audit and Inspection although being part of ICCD opened 127 centers so far. While auditing the Agent Banking
administratively reports directly to the Board Audit Committee and division, ICCD also visited 6 Agent Banking centers in 2023.
is responsible to the Board Audit Committee. Internal Control & • As per the instruction of Bangladesh Bank, ICCD prepared a
Compliance Functions of above two departments in 2023 are health report of the Bank based on the financial position of
enumerated below: 31.12.2022, and the report was approved by the Board of
Directors afterward.
a. Audit and Inspection Department: • ICCD coordinated Bangladesh Bank's inspection team/s
To reduce the operational risk of the bank, Midland Bank whenever various units/branches were audited by the
Limited conducts regular Audits/Inspections on the basis of regulatory authority and ensured timely submission of the
affairs of the bank based on different manuals, instructions, compliance report of BB Inspection in different areas, e.g.,
rules and regulations and procedures laid down by the Bank comprehensive Inspection at Divisions and Branches, etc.
and Bangladesh Bank and other regulatory authorities from
time to time. Special Audit is also undertaken whenever special
instructions are given by the Board of Directors, Executive Significant works in 2023:
Committee, Audit Committee, Risk Management Committee, Annual Audit and 36 Branches and
Managing Director and Deputy Managing Director of the Bank. Inspection 14 Sub-branches

b. Monitoring and Compliance Department: Branch AML Audit 36 Branches and

14 Sub-Branches
Monitoring Department is responsible to monitor the
operational performance of various Branches/Divisions/ 36 Branches and
Branch IS/ICT audit
Departments. The Department collects relevant data and 14 Sub-Branches
analyzes those to assess the risk of individual units. In case, any Surprise Visit 5 Branches and
major deviation is found they recommend to the Head of 1 Sub-Branch
Internal Control and Compliance/Head of Audit and Inspection Special visit to check
for sending an audit & inspection team for a thorough review. maintenance of 1 Branch
DCFCL
The Compliance Department is responsible to ensure that Bank
complies with all regulatory requirements while conducting its Special inspections on
14 Branches and
business. The Department maintains liaison with the regulators at all Anti Money Laundering 1 Sub-Branch
levels and notifies the other Departments regarding regulatory activities of Branches
changes. The Department followed up with the Branches/
Divisions/Departments for implementation/rectification of the Head office Annual Audit 26 nos. of audit an
findings/irregularities brought out in the Internal Audit Report/s. This and Inspection inspections in 29 Divisions/
Department is also responsible to arrange the timely submission of Departments/Units
the compliance reports of the Bangladesh Bank Inspection Report.
Special Inspection of 1 Branch and
new branches 3 Sub-Branches
Activity status of ICCD of MDB in 2023:
• ICCD revised the Risk-Based Audit checklist for Branches, Internal Audit and
Sub-branches and Head Office Divisions in 2023. The Inspection report review 160 times
checklists were prepared to align with existing and updated and compliance monitoring
manuals, policies, circulars of Bank, and related Bangladesh
Bank and other regulatory bodies' instructions. Based on Bangladesh Bank and
these checklists, a risk-based Audit was performed on other regulator's
Branches and Divisions/Departments throughout the year. inspection report and 69 times
• Surprise Visit at 5 (five) Branches and 1 (one) Sub-Branches compliance
was conducted in 2023.
• Special audit on 1 newly opened Branch and 3 newly opened Compliance of regulatory
Sub-Branch during 2023. changes summarized 4 quarters
• Special inspections on Anti Money Laundering activities of report placement
Branches were conducted at 14 (Fourteen) Branches and 1
(One) Sub-Branch.
• Special visit to check the maintenance of Departmental Regular Review tasks Review of QOR, LDCL
Control Function Check List (DCFCL) and Quarterly Self-assessment report,
Operations Report (QOR) at 1 Branch. various statements
• Review of Quarterly Operations Report (QOR) and Loan like loans and
Documentation Check List (LDCL). advances, Online GL
• According to comply with the provision of Bangladesh transactions etc.

Performance overview by Different Divisions/ Departments

Midland Bank PLC.
80 Annual Report 2023
Bangladesh Bank Inspection Statistics
We have received Bangladesh Bank inspection report total number of 16 , including 05 divisions/departments/units of the head office and
11 branches during the year 2023 which includes 09 Comprehensive Inspections, 02 Special Inspections, 04 surprise cash verifications, and
01 Core Risk Inspections.

Plan for 2024:

Like every year, ICCD plans to perform its yearly activity in light of Bangladesh Bank guidelines, circulars issued from time to time, industry
best practices, etc. Significant activities that ICCD will cover are enumerated below:
• Perform Audit and Inspection on 39 Branches and 19 Sub-branches.
• Perform AML, ICT/IS Audit on all 39 Branches and 19 Sub-branches, including an extra 10% AML audit per BIFU Circular – 19 dated
17.09.2017 & BIFU Circular – 26 dated 16.06.2020.
• Perform 29 nos. of audit and inspections in all head office divisions/departments.
• Perform Audit on 7 Agent Banking Centers as 5% of agent centers as per BIFU Circular – 26 dated 16.06.2020.
• Pay Surprise Visit to at least Six Branches/Divisions as the monitoring department instructs the audit and inspection team, as per ICC
guidelines, to inspect the specific deviation pointed out by reviewing the Quarterly Operations Report (QOR).
• Perform special Audit on newly opened Branch Sub-Branches after formal opening.
• Monitor and review the QOR, LDCL, and Self-Assessment Report on AML and send the report accordingly.
• Perform monitoring activities.
• Ensure compliance with Bangladesh Bank Inspection Reports, External and Internal Audit and Inspection reports, etc.
• Ensure compliance with Regulatory Changes.
• To automate a significant portion of ICCD activities in view of reducing time and cost as well as establishing stronger, more effective,
and more efficient internal control.

Internal Control and Compliance Risk Management

As per the core risk guideline of Bangladesh Bank, ICCD is acknowledged as one of the critical Risk Management organs of the Bank. To
mitigate its operational risks and identify various malpractices prevailing in operational activities, the division has formulated a robust and
resourceful policy guideline that ensures that the Bank demonstrates compliance and conformity with the Central Bank and other
regulatory bodies' relevant regulations. Besides, they ensure that corrective action plans are implemented within the set deadlines, and
they also ensure proper corporate discipline and awareness. During the year 2023, ICCD successfully conducted a comprehensive
Inspection of all divisions and Branches according to its approved activity plan and submitted findings to the competent authority for
discussion, review, suggestion, and proper evaluation. Apart from the continuous auditing, ICCD is also conducting off-site supervision
through monitoring day-to-day transactions and reporting any exceptions thereon. Thus the ICCD virtually acts as a whistleblower and
plays an active role in taking precautionary measures for risk mitigation and making the institution even more compliant on prudential and
regulatory issues.

Risk Management
Risk is the probability that an investment’s actual return will be different than expected which includes the possibility of losing partial or full
of the original investment. As such Midland Bank Limited (MDB) manages the risk through coordinated steps to keep the loss at a tolerable
limit which includes but not limited to control and monitoring only.
The objective of risk management is to identify and analyze risks and manage their consequences. Basel II/III Accord, the standards of Risk
Management as guided by the Bank for International Settlements (BIS) and particularly Basel Committee on Banking Supervision (BCBS),
has been applied by bank regulators across the world.
Effective risk management is one of the most crucial success factors for sustenance of a Bank. That is why, we have established a strong,
disciplined and inclusive risk management culture where risk management is a responsibility shared by all the employees of the Bank.

Governance Risk Management

Oversight Committe of the Board
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Identification Analysis Evaluate Treatment Monitoring
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Risk Management Framework

Performance overview by Different Divisions/ Departments

Midland Bank PLC.
81 Annual Report 2023
The risk landscape in the current business environment is changing dynamically with the dimensions of Cyber security, Information Security
& Business Continuity, Data Privacy and Large Deal Execution figuring prominently in the risk charts of most organizations. To effectively
mitigate these risks, we have deployed a risk management framework which helps proactively identify, prioritize and mitigate risks.
Bank’s risk management framework is applied on an enterprise-wide basis and consists of three key elements:
 Risk Governance
 Risk Appetite
 Risk Management Tools

Risk Governance
Board of Directors

Board Risk Management CEO/MD

Committee (BRMC)

Executive Risk
Chief Risk Officer (CRO) Management
(Head of RMD) Committee
(ERMC)

Credit Risk Market Risk Operational Liquidity Risk Research and

Risk Risk policy development

Basel
Implementation
Unit

Risk Management activities which are being reviewed by the Board Risk Management Committee is being communicated in the form of
meeting minutes (including observation, decisions and recommendations) to the board of directors. During the year BoD reviewed and
approved risk management structure of the Bank which was constituted as per the guidance of Bangladesh Bank. BoD also approved Risk
Management Policy guideline which was formulated in light of the guidance from Bangladesh Bank and MDB’s own capacity and risk
parameter also being taken into account.

Board Risk Management Committee (BRMC)

A Board Risk Management Committee has been formed in the Bank to oversee the activities of Management level Risk Management
Committees of the Bank as well as to oversee the implementation status of investment (credit) Risk, Foreign Exchange Risk, Interest Rate
Risk, Market Risk, Operational Risk , Liquidity Risk, Risk Based Capital Requirement, Provisioning (required and Maintained); etc.
Disclosure of activities of the Board Risk Management Committee (BRMC) is as follows:

Par�culars During the year 2023 (in Number)

Number of Members of Board RMC 5
Number of Board RMC Meetings 4

Executive Risk Management Committee (ERMC)

A strong Risk Management Committee has been formed in the Bank comprising the heads of all the risk taking organs, regular meeting in
the committee is being arranged and organized by the Risk Management Division. The committee sits usually once a month or more when
necessary. In the meeting of RMC, all the existing/identified and foreseeable/potential risks issues are discussed and recommendations to
the concerned risk taking organs is to address, measure and take the required steps to mitigate the risk factors. Disclosure of activities of
Risk Management Committee (RMC) is as follows:

Par�culars During the year 2023 (in Number)

Number of Member of RMC 13

Number of RMC Meeting 12

RISK MANAGEMENT DIVISION (RMD)

Risk Management Division of the bank is responsible for establishing Bank’s risk management framework, and to ensure that the
procedures for identification, monitoring, mitigating and managing risks are in place as per risk management guidelines, core Risk

Performance overview by Different Divisions/ Departments

Midland Bank PLC.
82 Annual Report 2023
Management Guidelines of each area and Basel accord are also being complied effectively. The Bank’s risk mitigating technique is not to
wait for the risk but to take precautionary measures to mitigate the risk and lessen impact of the risk before incident happens. To
supplement the stand of the Bank, RMD is extensively working on robust Risk Management practices and exchange of ideas about Risk
Management for creating an acceptable risk management culture within the Bank.

Risk Culture
The Bank’s risk governance structure, risk appetite, and risk management tools are influenced by risk culture of the Bank. The risk culture
is built upon:
Tone from the top: Clear and consistent communication from leaders on risk behavior expectations and the importance of MDB’s values.
Accountability: All MDB employees in every business function are held accountable for risk ownership and their actions in accordance
with the Risk Management Policy.
Compensation: Programs are structured to discourage behavior not aligned with the Bank’s values or MDB’s GAP Policy (Code of
Conduct) and ensure that such behaviors will not be rewarded.
Reporting: Reputational and operational risk dashboards and other key metrics are monitored and reported. The Bank also seeks out
employee feedback through a variety of surveys.
Training: MDB continually reinforces risk culture by providing effective and informative mandatory and non-mandatory training modules
for all employees, as well as presentations and other training media on a variety of risk management topics.
Decision-making on risk issues highly centralized: The membership of senior and executive management committees responsible for
the review, approval and monitoring of transactions and the related risk exposures (whether global or local) include business line heads
and senior risk officers.

Risk Appetite Statement

MDB’s risk appetite statement defines the amount of risk we are willing to assume in pursuit of our strategic and financial objectives. Our
guiding principle is to practice sound risk management, supported by strong capital and funding positions, as we pursue our
client-focused strategy. In defining our risk appetite, we take into consideration our vision, values, and strategy, along with our risk
taking/absorbing capacity (defined by regulatory constraints). Application of the risk appetite statement and monitoring of the key risk
appetite measures help to ensure the Bank stay within appropriate risk boundaries.

Risk Management Tools

Effective risk management includes tools that are guided by the Bank’s Risk Appetite Framework and integrated with the Bank’s strategies
and business planning processes.

Risk Mitigation Methodologies

Risk types Governing Documentation Application to Risk Appetite Limits/ Tolerances
Credit risk policy, Credit risk Exposure to a single customer or group of related parties.
Credit risk Country risk (exposure limits to control transfer/cross -border
appetite, Collective allowance policy and sovereign default risks); and Industry concentrations
for performing loans (exposure and risk adjuste d concentration limits).

Market and structural risk Various VaR limits, stress test results, equity and debt investment
Market risk exposures, and Structural interest rate and foreign exchange
management policy exposures.
Appropriate hold levels of unencumbered high quality liquid
Liquidity and Liquidity risk and collateral assets that can be readily sold or pledged; Limits to control the
funding risk maximum net cash outflow over specified short -term horizon;
management policy and Diversification of funding by source, type of depositor,
instrument, term and geographic market.
Operational risk management policy
and framework, Internal control
policy, Fiduciary risk management Systematic identification, measurement, mitigation and
Operational risk policy, New products and services monitoring of operational risk, Minimization of residual
risk management policy, Info rmation operational risk; and Expressed quantitatively by an aggregate
technology risk management policy, loss limit.
Outsourcing & other arrangements
risk management policy

Reputational risk policy, Guidelines Low tolerance for reputational, legal, or taxation risk arising
Reputational risk from business activities, initiatives, products, services,
for business conduct compliance transact ions or processes, or from a lack of suitability of
policy products for clients.

Environmental risk Environmental policy Ensuring that projects are developed in a socially responsible
manner

Annual strategy report to the Board It lin ks the Bank’s risk appetite framework with the enterprise
Strategic risk strategy, business line strategies and corporate function
of Directors strategies;

Performance overview by Different Divisions/ Departments

Midland Bank PLC.
83 Annual Report 2023
Credit Risk Foreign Exchange Risk Management
Credit risk is the risk of financial loss due to a borrower or Foreign Exchange risk is involved in purchase and sale of any foreign
counterparty failing to meet its obligations in accordance with currency against national currency. The foreign Exchange risk arises
contractual terms. due to unexpected movement of market price of the holding of
currencies or the price of the assets denominated in foreign
Effective management of credit risk requires the establishment of an currencies.
appropriate credit risk culture. The Board of Directors, either directly
or through the Risk Committee (the Board), reviews and approves Treasury Division oversees foreign exchange risk, net open
the Bank’s credit risk appetite annually and credit policy manual position, dealing room operations and anti-money laundering
triennially. aspects in foreign exchange transactions; etc.

Environmental Risk Management For effective and efficient management of foreign Exchange Risk,
Environmental Risk Management Seeks to offer a structure for the Bank has a well-developed and well-structured Foreign
addressing the risk to make a certain course of action for enduring Exchange Risk Manual and an international standard dealing room
sustainable financial and economic growth. Environmentally manual. Further, in order to mitigate the risk, Bank follows all kinds
derived risks for the Bank are inability of the clients to make of guidelines and directives that central Bank advises from time to
payments due to unexpected environmental costs, time. The treasury carries out the activities of foreign exchange as
interruption/discontinuation of client business by imposing per procedures of dealing room manual. The front office
penalties/closure notice by competent authorities, decrease in the independently conducts the transactions and the Back office is
value of security due to environmental impairment during the term responsible for verification of the deals as per set guidelines and
of investment etc. Environment risk management procedure passing of separate
includes identify environmentally derived-potential liabilities for
Bank in transactions, assess the awareness, commitment and Asset Liability Risk Management
resources of the client to manage the environmental risk creating Asset Liability Management (ALM) defined as a well-planned,
those potential liabilities, manage and control the Bank’s exposure well-organized and systematic process of monitoring and
to environmentally derived liabilities. As per instruction of BB, the maintaining assets and liabilities of the Bank which focuses on
bank has implemented Environmental and Social Risk Rating maximization of profit through minimization of various risks
(ESRR) and Environmental Due Diligence (EDD) of the eligible vis-à-vis maximum of spread through mitigating liquidity risks, rate
customers in the light of ESRM guidelines. of return risk etc. and ultimately leads the Bank to a healthy and
stable growth. In the above context, RMC of the Bank reviews and
Market Risk monitors asset-liability risk of the bank regularly and decision taken
Market rate is defined as the possibility of losses in on and in the ALCO meeting is also reviewed and discussed. The Bank has
off-balance sheet positions arising from movements in market a dedicated committee, called the ALCO comprising of the senior
prices. The exposure of the Bank to market risk arises principally management of the Bank headed by the Managing Director & CEO
from customer-driven transactions. The market risk positions subject to take important decisions related to the balance sheet, liquidity &
to this requirement are: profit Rate risks of the Bank. Treasury Division of the Bank looks
 The risks pertaining to profit rate related instruments and after the asset-liability management risk.
equities in the trading book;
 Foreign exchange risk and commodities risk throughout the Money Laundering Risk Management
bank (both in the banking and in the trading book). MDB takes utmost care to recent money laundering and terror
financing matter as a crucial part of its risk management activities.
Interest Rate Risk Bank has formulated its own guidelines for prevention of money
Interest Rate Risk is the risk, which affects the Bank’s financial laundering approved by the Board of Directors in line with
condition due to change in the market interest rates. The changes Bangladesh Bank AML/CFT laws, rules and regulations. Risk
in interest rates may affect both the current earnings as well as the Management Committee of the Bank reviews and monitors the
net worth of the Bank (economic value perspective). The risk from AML activities i.e. Suspicious Transaction report, Cash Transaction
earnings perspective measured as impact on the Net Investment report, Number of branch inspected, number of workshop held on
Income (NII). Similarly, the risk from economic value perspective AML and Number of participants etc.
can be measured as it has impact on Economic Value Equity (EVE)
since the value of the Bank’s assets, liabilities and off-balance Internal Control and Compliance Risk Management
sheet (OBS) instruments changes because of the changes of As per core risk guideline of BB, ICCD is acknowledged as one of
present value of future cash flows when interest rates changes. the key RM organ of the Bank. To mitigate its operational risks
ICCD identify various deviant policies in operational activities. The
Interest rate risk in the banking book is the burning issue since division has formulated a robust and elaborate policy guideline to
bank’s earning is exposed to risk. To reduce the risk, the following be followed which ensures that Bank demonstrates compliance
activities are performed by the bank: and conformity with relevant regulations of the Central Bank and
other regulatory bodies. In addition, they ensure that corrective
 Interest rate is determined considering the expectation of action plans are implemented within the set deadline as well as
the depositors and market scenario; ensure proper corporate discipline and awareness. During the year
 Gap analysis is considered for fixing the interest rate; the ICCD successfully conducted comprehensive inspection on
some the Divisions of Head office and all Branches as its

Performance overview by Different Divisions/ Departments

Midland Bank PLC.
84 Annual Report 2023
scheduled and submitting findings thereon to the competent and operational risk under pillar-1 of Basel accord and SRP covers
authority for discussion, review, suggestion and proper evaluation. all other risks. In Bank’s point of view, risks are endless. So
Thus the ICC system of the Bank always play an active role in Bangladesh Bank has detected some of the risky areas to measure
mitigating operational risk and contributes in the process of being the risks in a structured way which is known as SRP, which comes
a well compliant Bank in the industry for ensuring stable growth. under the guideline of pillar-2 of Basel accord.

Top and Emerging Risks Stress Testing

We monitor and review top and emerging risks that may affect our Stress testing is a risk management technique used to evaluate the
future results, and take preemptive action to mitigate potential potential effects of an institution’s financial condition at a specific
risks if required. We perform in-depth analyses, which include event and/or movement in a set of financial variables. It is an
stress testing our exposures related to the risks, and provide integral part of the capital adequacy framework. The focus of
updates and related developments to the Board on a regular basis. stress testing relates to exceptional but plausible events. This
This section describes the top and emerging risks that we consider involves several shocking events. Each shocking event contains
with potential negative implications, as well as regulatory and Minor, Moderate and Major Level of shocks.
accounting developments that are material for MDB.
The findings of stress testing are being reviewed in the meeting of
Technology, Information and Cyber Security Risk the Risk Management Committee and the same also being
MDB is a forward looking financial institution and as such evolving reported to Bangladesh Bank and Board Risk Management
its business processes by leveraging innovative technologies e.g. Committee of the Bank for their guidance against the particulars
internet for faster and documented communication between the risk areas. In view to finding of stress testing, guidance from
divisions, departments and branches and also with the clients. This Bangladesh Bank and Board RMC also being taken into account
facilitates faster identification of any deviant activities risk and as for assessing potential risks of the bank.
well as faster delivery of our services. At the same time, this
enhances cyber threats and the associated financial, reputation Step Forward
and business interruption risks have also increased. However to MDB follows a holistic approach when implementing framework of
mitigate such risk, MDB has adequate professional skilled risk management practices. We also use dynamic tools to address
manpower and also upgrade its technology. different risks and continuously focus on improvements to get the
better return. Besides, the Bank’s focus will be staying robust at
Operational Risk times of challenge and keeping well-informed of fast-paced
Operational risk refers the risk of unexpected losses due to changes. In addition to that, continuous monitoring and no
physical catastrophe, to technical failure and human error in the compromise approach would be the guiding principle for the risk
operation of the Bank, including fraud, failure of management, management of the Bank in the upcoming year.
internal process errors and unforeseeable external events. ICCD of
the Bank compliant documented process in place to address and SPECIAL ASEESTS MANAGEMENT DIVISION
assess all the operational risks. Midland Bank Limited has its top priority on the agenda of keeping
its risk assets’ portfolio under regular recovery so that it can
Residual Risk maximize its profitability to the most possible extent. In this
The Bank uses different techniques to reduce their credit risk. direction, the Management of the Bank has created a dedicated
Improper application of these techniques may rise to additional division namely; Special Assets Management Division (SAMD) with
risks that render the overall risk management less effective. required expertise and manpower support. Special Assets
Accordingly, these additional risks are termed as residual risk Management Division (SAMD) of Midland Bank operates hand to
which arises mainly out of the following situations: hand with different Business Units and Legal Division for
expediting the recovery through direct persuasion with defaulter
1. Error in documentation customers and also through taking legal initiatives with the support
2. Error in valuation of collateral of Legal Division. Proper follow up and monitoring, along with
frequent customer visits are the keys to success of Special Assets
The following activities are performed by the Bank to minimize the Management Division.
above two issues under residual risk:
 Adequate and valid documentation are being ensured for The work plan of Special Assets Management Division (SAMD) is
minimizing capital charge under error in documentation prepared based on the discussions that take place in monthly
 Valuations of collaterals are being done properly. recovery meetings and the action plans that are decided against
each and every defaulter customer. Special Assets Management
Risk Based Capital Management Division work alone, on the accounts assigned to them and also as
Supervisory Review Process (SRP), the second pillar of Basel a team with other Business Units and Legal Division. This strategy
accord covers a wide range of risks, including core risks as has so far brought good recovery result for the Bank. In 2023, BDT
mentioned above, to ensure adequate capital against all risks. In 172.40 Million was recovered from Bank’s NPL.
fact minimum capital is maintained against credit risk, market risk,

Performance overview by Different Divisions/ Departments

Midland Bank PLC.
85 Annual Report 2023
Chief Financial Officer’s Report
Overview
MDB is one of the compliant fourth generation banks in
Bangladesh. As a longstanding bank of repute with deep bonds of
customer and depositor trust, we engage in all types of typical
banking activities, operations and services. Our scale, business
model and diversification accelerate our objective to be the best
digital financial services platform, acting responsibly and earning
the lasting loyalty of our stakeholders. We also continued to build
trust with our investors/shareholders community by keeping them
up-to-date with regards to key material developments, as well as
our capital, NPL positions, strong liquidity and efficient cost
management, etc.

As of December 31, 2023, we had BDT 83,425.87 million of assets,

BDT 54,862.66 million of loans & advances and BDT 60,302.72
million of deposits. Management's wide initiatives to rein in operating
costs resulted in limiting the Cost-to-Income Ratio at 45.39% and
spread stood at 2.90%. In addition, with a strong capital position of
the Bank, the Capital to Risk-weighted Asset Ratio (CRAR) stood at
In 2023, under unpleasant challenging environments, MDB has 17.28% against regulatory requirement of 12.50% including 2.50%
performed well in key areas of its business activities, i, e., compared capital buffer. Despite the unprecedented headwinds in 2023, Board
to last year Loans & Advances growth was 3.92%, Deposit growth of Directors recommended 5.00% cash dividend for the FY 2023,
was 4.40% and our operating profit growth increased by 14.17% thus meeting our shareholders’ expectations.
over last year of 2022. We have also achieved our annual target of
Loans @ 83%, Deposits @ 82% and operating profit @ 60.39% as Despite operating in a challenging business environment in 2023,
set by the Board of Directors for the FY 2023. As a result, our MDB’s business and profit performance remained very well, mainly
balanced growth has generated positive returns for the on account of strong asset quality, relaxed provisioning norms and
stakeholders. During the year all these hardship of challenges prudent cost management eff¬orts, etc.
taught us to be resilient, adaptive, innovative and confident in the
face of hardship and we are confident to deliver better Key highlights in 2023
performance in the coming days.  Interest income increased by BDT 846.24 million from BDT
3,657.21 million in 2022 to BDT 4,503.46 million in 2023, i.e.,
Stimulating Times, Robust Responses growth up by 23.14% over 2022. On the other hand, interest
Midland Bank began the year 2023 with a sense of optimism, paid on deposit & borrowings increased by BDT 539.22 million
improved by the consistent GDP growth of the country, from BDT 3,201.24 million in 2022 to BDT 3,740.46 million in
improvement purchasing power of individuals and huge 2023, i.e., up by 16.84%, due to rise in deposit rates in overall
investment in the infrastructure development in the country, which market during the year. As a result, net interest income
set forth the template for plans and targets for the year. The increased by 67.34%, or BDT 307.03 million from BDT 455.97
outline was, however, completely re-set when COVID-19 spread million in 2022 to BDT 763.00 million in 2023.
across the world, capitulating the global economy with drastic
 Operating Income increased by BDT 446.05 million from BDT
impact on the lives and livelihood of peoples and businesses
2,745.69 million in 2022 to BDT 3,191.74 million in 2023, i.e.,
everywhere around the world. The restrictions of movement
growth up by 16.25% over 2022.
caused a rapid deceleration of economic activity, policy rates
started to fall hitting record lows.  Operating expenses increased by BDT 229.78 million from BDT
1,218.96 million in 2022 to BDT 1,448.74 million in 2023, i.e.,
In order to continue supporting our customer and stakeholder increased by 18.85% over 2022, because 02 (two) new
ecosystem, we ensured that, we were doing so from a position of branches, 03 new sub-branches, and 18 Agent Banking Centers
strength. Accordingly, we strongly managed our liquidity and (ABCs) had come into operation during the period. Operating
capital positions to keep funding accessible to our valued cost also increased as we had spent of BDT 17.88 million as
customers, while closely monitoring any potential build-up of asset CSR, during the year.
quality slippages that could place pressure on our capital levels.  Core Business profit (excluding capital gain/loss) increased by
We also ensured compliance with all regulations, thus meeting the BDT 9.05%, from BDT 1,476.60 million in 2022 to BDT 1,610.30
authority’s mandate of relief/stimulus transference to intended million in 2023, due to our net interest income increased by
beneficiaries. 67.34% during the financial year.

Chief Financial Officer’s Report

Midland Bank PLC.
86 Annual Report 2023
  Operating profit before provision on loans and corporate tax During the year 2023, we ensured prudential capital management
increased by 14.17% from BDT 1,526.73 million in 2022 to BDT with a prioritised focus on safety. Our key objectives with regards
1,743.00 million in 2023, after covering net loss of BDT 132.70 to our capital management focus include the following:
million from revaluation/amortization of Treasury Bills/Bonds  Compliance with regulatory capital requirements.
during the year.
 Alignment of capital levels to the bank’s risk appetite and
 Net profit after tax registered at BDT 1,133.11 million in 2023 strategic business plans.
against BDT 561.97 million in 2022, i.e., up by BDT 571.14 million,  Maintaining an appropriate balance between optimising
or 101.63% over 2022, due to our net interest income increased returns to shareholders and prudent capital management.
by 67.34% over the last financial year 2022.
 16.15% of Tier- 1 capital ratio held against minimum
 Cost reduction which encompasses deposit cost to all types of regulatory requirement of 8.50%.
OPEX and CAPEX was achieved through our higher brand  17.28% of Total capital ratio held against minimum
value and trustworthiness among our depositors and the regulatory requirement of 12.50%.
optimisation of plans implemented in recent years. We
remained one of the most efficient banks in the country with a Credit Rating
Cost-to-Income Ratio of 45.39% in 2023 and we also able to Emerging Credit Rating Limited (ECRL) was rated the Bank with
stable growth of our operating cost at 18.85% over 2022, effective from July 01, 2023 to June 30, 2024 as follows:
though 02 (two) new branches, 03 new sub-branches, and 18
Agent Banking Centers (ABCs) had come into operation during  Long Term : A+
the period. Operating cost also increased as we had spent of  Short Term : ST-2
BDT 17.88 million as CSR, during the year. Yet, we expect to
 Outlook Status : Stable
further improve our operational capacity with efficient cost
management. Outlook for 2024
 Loan -loss provisions were kept as per regulatory guidelines. The Bank has already started reaping benefit of its strategy of
During the year our loan-loss provision increased, due to diversification in its portfolio, products, services, channels, etc. Bank
increase of our loan book as well as some clients have turned also invested a substantial amount in its digitilasion platform, which
into classified, but we are trying to recover/regularize it. We will add more flare in its scale up game changing strategy.
have also maintained with extra provision of 1%-2% for Therefore, revenues from on-balance sheet and off-balance sheet
covering Covid-19 pandemic situation, which has resulted in position will become stronger and consistent in the coming days.
Overall despite persistent uncertainties, in geopolitics, financial
higher NPL coverage ratio 142% to strengthen the balance
regulations and ongoing dry liquidity situation, Midland Bank has
sheet to withstand any unforeseen situation in future.
begun 2024 with a comfortable liquidity position and a positive
 Loans and Advances increased by 3.92%, or BDT 2,069.85 funding outlook for the year.
million to BDT 54,862.66 million in 2023 from BDT 52,792.81
million in 2022. However, overall loans portfolio remained We expect a steady increase in lending in all our segments with
relatively balanced between Institutional Banking (Corporate), high growth in new segments, i.e., small and micro finance, women
MSME and Retail Segments. segment, start-up business, supply chain, and retail, as well as a
good performance in deposits with low cost and no cost mixed.
 Customer deposits grew by 4.40%, or BDT 2,539.71 million to Going forward, we will focus on optimising liquidity to maintain a
BDT 60,302.72 million in 2023 from BDT 57,763.01 million in solid balance sheet structure across our footprint in compliance
2022. While growing our deposits book, we have focused on with regulatory guideline. We are also focusing with new products
low cost and no cost (CASA) deposits acquisition and and solutions to improve in non-funded income windows from
eventually by the end of 2023 our CASA ratio stood at 28% trade business to account services to credit/prepaid cards which
against 30% in 2022. will be a core strength of the Bank.

Capital Management Strategies Sincerely,

Midland Bank’s capital management approach is guided by the key
capital management objectives as articulated in its capital
management framework. The bank’s capital position, capital mix and
capital allocation are continuously reviewed, taking into
consideration of strategic and organisational requirements, as well Md. Zahirul Islam, FCA
as regulatory and business environment in which the bank operates. Senior Executive Vice President & CFO

Chief Financial Officer’s Report

Midland Bank PLC.
87 Annual Report 2023
 Report on Economic Impact
Midland Bank's overall mission is to deliver optimum value to its customers, employers, shareholders and the nation as a whole. The
business strategy is geared towards achieving these. This section covers the value that the Bank delivers to its shareholders and nation
at large.

Midland Bank's policy is to deliver optimum value in a manner that is consistent with the highest level of fairness and transparency. For
the Bank, it has not been a case of building financial value and enhancing the bottom line at any cost, but rather participating in a
process of creating value through fair and ethical means. Building sustainable value of all stakeholders is an important corporate goal.

Maintaining Capital to Risk Weighted Assets Ratio (CRAR)

Capital to Risk Weighted Assets Ratio (CRAR) represents the financial strength and stability of a Bank. It limits the extent up to which
Banks can expand their business in terms of risk weighted assets. Regulatory capital requirements are, therefore, necessary to prevent
Banks from expanding beyond their ability to improve the quality of Bank's assets, to control the ability of the Banks to leverage their
growth and to lead to higher earnings on assets, leading to peace of mind of all the stakeholders. Midland Bank keeps a careful check
on its Capital to Risk Weighted Assets Ratio.

The capital adequacy computation as on December 31, 2023 is given below:

Particulars of Capital Fund 2023 2022 % of growth in

2023 over 2022

Paid up capital 6,396.70 5,696.70 12.29%

Statutory reserve 1,881.77 1,626.33 15.71%

Retained earnings 868.86 322.36 169.53%

Sub-total 9,147.33 7,645.39 19.65%

Deduction from Tier -I (core capital):

Intangible assets and Deferred Tax adjustment (568.33) (14.78) 3745.36%

Total Tier - I (core) capital 8,579.00 7,630.61 12.43%

General provision including off -balance sheet items 599.36 565.39 6.01%

Revaluation reserve on investment in securities - - -

Total Tier - II (supplementary) capital 599.36 565.39 6.01%

Total capital (Tier I + II) 9,178.36 8,196.00 11.99%

Total risk weighted assets 53,122.65 55,257.43 -3.86%

Tier - I (core) capital ratio 16.15% 13.81% 2.34%

Tier -II (supplementary) capital ratio 1.13% 1.02% 0.11%

Capital to Risk Weighted Asset Ratio -CRAR

17.28% 14.83% 2.45%
(Regulatory requirement is 12.50%)

Report on Economic Impact

Midland Bank PLC.
88 Annual Report 2023
Statement of value added and its distribution
Value added Value added % of growth in 2023
Particulars
in 2023 in 2022 over 2022
Income from banking services 6,932.20 5,946.93 16.57%
Less: Cost of services & supplies (4,251.88) (3,574.41) 18.95%
Value added by banking services 2,680.32 2,372.52 12.97%
Non -banking income - - 0.00%
Less: Provision for loans, Off -balance sheet
exposure and CSR (477.13) (471.66) 1.16%
Total 2,203.19 1,900.86 15.90%
Distribution of value addition:
Payment to employees as salaries & 708.32 635.09 11.53%
allowances
Transferred to Statutory Reserve 255.44 217.73 17.32%
Payment to Government as income tax 690.12 544.23 26.81%
Sub -Total (A) 1,653.88 1,397.05 18.38%
Expansion and Growth:
Retained profit 866.34 310.68 178.86%
Depreciation 228.99 210.70 8.68%
Deferred taxation (546.02) (17.57) 3008.27%
Sub -Total (B) 549.31 503.81 9.03%
Grand Total (A+B) 2,203.19 1,900.86 15.90%

Economic value added statement

Economic value added is a measurement of a company's financial performance based on the residual wealth calculated by deducting
cost of capital from its operating profit. Shareholder/Equity providers are always conscious about their return on capital invested. As a
commercial Bank, Midland Bank Limited (MDB) is deeply concerned for delivery the value to all of our Shareholders/Equity providers.
During the reporting year 2023, the economic value added of MDB are as under:

Value added Value added % of growth in

Particulars
in 2023 in 2022 2023 over 2022

Shareholders’ equity 9,150.66 7,646.54 19.67%

Add: Accumulated provision for Loans & Advances
2,160.47 1,690.93 27.77%
and Off - balance sheet exposure

Total shareholders’ equity 11,311.13 9,337.47 47.44%

Average shareholders’ equity 10,324.30 9,068.34 13.85%

Earnings:

Profit after tax 1,133.11 561.97 101.63%

Add: provision for Loans & Advances and 465.80 438.09 6.32%
Off - balance sheet exposure

Less: Loans written off during the year - - -

Earning for the year (A) 1,598.91 1,000.06 107.96%

Average cost of equity (based on weighted average
rate of Shanchay Patra issued by Government of 8.53% 8.53% 0.00%
Bangladesh)

Cost of average equity (10,324.30 *9.35% plus 1%

risk premium) (B) 983.91 864.21 13.85%

Economic value added (A - B) 615.00 135.85 352.72%

Report on Economic Impact

Midland Bank PLC.
89 Annual Report 2023
 Corporate Governance
Introduction Gender Balance
Corporate Governance (CG) comprises a set of systems and The MDB Board of Directors proudly boasts an admirable gender
practices to ensure that the Bank's affairs are being managed in a balance, exemplified by the presence of two esteemed female
manner which ensures accountability, transparency and fairness in Directors. Their inclusion represents a significant milestone,
all transactions in the widest sense. The objective is to meet constituting 10.00% of the total Directors. This commitment to
stakeholder's aspirations and societal expectations. Good diversity underscores our dedication to fostering an inclusive and
governance practices stem from the dynamic culture and positive equitable corporate environment.
mind-set of the organization. Midland Bank is always committed to
the best corporate governance practices, in the sense of Composition of Board of Directors
responsible and transparent management and control aimed at The Board of Directors comprises of 20 (Twenty) Directors as on 31
sustainable value creation. The guiding principles of our December 2023 including the Managing Director as ex-officio
governance practice are basically derived from various regulatory member. The Chairman and 19 (Nineteen) other Directors are
requirements of Bangladesh Bank (Central Bank of Bangladesh) Non-Executive Directors and only the Managing Director & CEO is
and Bangladesh Securities & Exchange Commission (BSEC). MDB, an Executive Director. Notably, among the Non-Executive Directors,
since the very beginning of its operation, has manifested its four are distinguished Independent Directors. In terms of aptitude
commitment to adhering to the principles of sound corporate and competence, shareholder Directors bring a wealth of education
governance. The Bank is also committed to complying with the and experience to the table, enhancing the overall management
Bangladesh Bank Circulars (BRPD Circular NO. 02 dated 11 capability. Many among them are accomplished businessmen,
February 2024 and BRPD Circular NO. 03 dated 14 February 2024) holding pivotal positions in public life. Almost all of them are
in line with Bank Company Act, 1991 (Amended upto 2023). Besides successful businessmen in their own right holding responsible
the regulatory and legal bindings, our best CG choices and positions in public life. The Board meets at least once every Month.
practices are inspired by various internal rules, policies, procedures, As per Bank Company Act, 1991 and BRPD Circular Letter No.02,
applications and experience based on preferred governance dated 11 February 2024, the Board of Directors have delegated
systems enacted by local and global banking institutions. powers to the Managing Director for smooth and effective
operation of the day-to-day affairs of the Bank. Strategic issues and
Through a good corporate governance structure, MDB seeks to policy-making are thoroughly discussed during Board meetings,
balance the financial success, controls, transparency and with decisions informed by management insights and exchange of
accountability. To us, corporate governance means increasing the viewpoints. This collaborative approach ensures effective
stakeholders’ value by being efficient and professional to the governance and fosters the growth and stability of the institution.
organization, transparent and accountable to the shareholders and
responsible to the community and environment. The Board of Independent Directors
Directors plays a pivotal role in corporate governance. It is their The Board of Directors of the Bank consists of 20 (Twenty)
responsibility to endorse the organization’s strategy, devise policy, members including Managing Director and CEO. There are four
appoint and supervise senior executives and ensure organizational (04) Independent Directors in the Board of Directors of MDB
transparency to its owners and regulatory bodies. MDB’s corporate appointed by the Board of Directors of the Bank with prior
governance structure includes the following constituents: approval from Bangladesh Securities and Exchange Commission
(BSEC) and Bangladesh Bank.
MDB’s Governance Standard
The Independent Directors appointed by the Board have excellent
• Compliance of corporate governance guidelines of the professional track record in the highest level in their respective
regulators. fields. Mr. Mahbubul Hady Fazle Rab and Mr. Khandaker Tanveer
• Appointment of Directors in the Board meeting and election Shamsul Islam Independent Directors of MDB having diversified
of Directors through voting by the shareholders in the banking experiences at home and abroad. The other Independent
Annual General Meeting, subject to approval of Bangladesh Directors of MDB, Mr. Nazimuddin Chowdhury and Mr. Md.
Bank. Asif-uz-zaman were veteran Civil Servants with experience of
• Independent guidelines in respect of composition of Board working at the highest level of the Government as the Secretary
Committees. and Senior Secretary respectively. The Directors have declared
• Review of performance of all Committees by the Board. their respective interests and directorships at the time of joining
• Independent discussion in the meetings of Board the Board and also their dealings in Bank’s securities are on full
Committees. disclosure.
• Systematic learning and development process for all
Directors with respect to best CG practices. Meeting of the Board
• Acknowledgement of adherence to Bank’s guidelines to The Board of Directors meet on regular basis: usually once in a
business conduct by all Directors/Executives/Employees. month, but emergency meetings are called when deemed
• Compliance of Central Bank directives in the process of necessary. Management provides information, references and
appointing new Directors. detailed working papers for each agenda to all Directors well
ahead of the date scheduled for meeting. Chairman of the Board of

Corporate Governance
Midland Bank PLC.
90 Annual Report 2023
Directors allocates sufficient time for the Directors to consider As per recommendation of the Board of Directors, the shareholders
each agenda item in a prudent way and allow them to freely of the Bank in the 10th AGM held on 14 June 2023 approved the
discuss, inquire, and express opinions on the items of interest so appointment of M/s. Hoda Vasi Chowdhury & Co., Chartered
that they can fulfill their duties to the best of their abilities. In 2023, Accountants for the first year as the statutory auditors of the Bank
total 16 Board Meetings were held. for the financial year 2023. In compliance with the provision 4 of
BSEC guidelines, the External Auditor was not engaged with MDB in
Responsibilities of Chairman and Chief Executive any of the following services during the year 2023:
Officer
Roles of the Chairman of Board of Directors and the Managing • Appraisal or valuation services or fairness opinions.
Director are clearly spelled out in writing and have been agreed by • Financial information system design and implementation.
the Board. The Chairman supervises the operation and • Bookkeeping or other services related to accounting records
effectiveness of the Board of Directors. As the Chief of the Board, or financial statements.
he approves the agenda for the Board meetings with the • Broker-Dealer services.
assistance of the Managing Director and the Company Secretary. • Actuarial services.
He further ensures that there is effective communication with • Internal audit services.
stockholders and promotes compliance with the highest standards • Any other service that the Audit Committee of the Board
of corporate governance. On the other hand, the Managing determines.
Director is responsible for implementation of agreed strategy and
holds delegated authority from the Board for the day-to-day Appointment of Compliance Auditor as per
management of Bank business. Being the head of management Corporate Governance Code of the BSEC
team, he is accountable to the Board and its Committees to run As per recommendation of the Board of Directors, the
and manage the Bank in accordance with prescribed policies, shareholders of the Bank in the 10th AGM held on 14 June 2023
principles and strategies adopted by the Board and guidelines approved the appointment of M/s. K. M. Hasan & Co., Chartered
from the Central Bank, BSEC and other regulatory bodies. In MDB, Accountants as Compliance Auditor of the Bank for the financial
the corresponding responsibilities of the Chairman and the year 2023. Moreover, as per requirement of the Corporate
Managing Director imply that the management of the Bank Governance Code of BSEC, the Board of Directors also
handles daily affairs of the Bank as a separate entity from the recommended M/s. Islam Jahid & Co., Chartered Accountants for
Board of Directors and both work in the common interests of the appointment by the shareholders in the 11th Annual General
Bank and its stakeholders. Difference of opinion is settled in a Meeting of the Bank. As per clause xxvi of the Corporate
harmonious way towards achieving more of Bank’s goal together. Governance Code, the Compliance Auditor will provide a report as
well as certificate regarding compliance of conditions as required
Benefits provided to the Directors and the under condition No. 9 and disclosed as per Annexure-B and
Managing Director Annexure-C of the Corporate Governance Code.

As per Bangladesh Bank BRPD Circular Letter No.02, dated 11 Functions of the Board
February 2024, Banks in the country can only provide the following The Board of Directors has the responsibility to the shareholders for
facilities to the Directors: the overall guidance and control of the Bank. Among its key
responsibilities, the Board approves all policies and strategies
• The Chairman of the Board of Directors may be provided car, formulated by the Bank Management as well as ratify all
telephone, office chamber and private secretary. decisions/approvals made by the Executive Committee (EC) of the
• Directors are entitled to fees and other benefits for attending Board. The Board, while discharging its responsibilities, is committed
the Board/Executive Committee/Audit Committee/Risk to high standards of governance designed to protect the interest of
Management Committee meetings (Notes to the Financial shareholders along with all other stakeholders with highest level of
Statements, note # 31) integrity, transparency and accountability. The Directors of the
• Managing Director is paid salaries and allowances as per Board are confident that they did their best in protecting
approval of the Board and Bangladesh Bank (Notes to the stakeholders from the impacts of the difficult circumstances
Financial Statements note # 26.01) confronted during the year, as set out in the Directors’ Report. The
• Independent Directors are paid a monthly remuneration of Board has initiated a fundamental review of risk governance with a
TK.50,000 as per BRPD circular dated 14th February 2024, view to being better equipped to anticipate financial market and
effect from 14th 2024. economic discontinuities and trends in the future. This is monitored
by a Committee of Directors and supported by independent Risk
MDB is compliant with the Bangladesh Bank Circulars and Management Division (RMD) of the Bank. The Board is committed
Guidelines in respect of the above. to implement the recommendations that arises from the review of
the Committees concerned.
Remuneration and Compensation of the Management
In order to discuss and decide issues related to remuneration and Board Committees
compensation of employees, the Board reviews and approve As per rule set by Bangladesh Bank vide BRPD Circular Letter
benefits as and when required. No.02, dated 11 February 2024, a Bank company can form as many
as three committees or sub-committees of the Board. Accordingly,
Appointment of External Auditors and the purview of their activities MDB has formed three committees of the Board, namely Executive

Corporate Governance
Midland Bank PLC.
91 Annual Report 2023
Committee, Audit Committee and Risk Management Committee • review along with the management, the quarterly and half
with an objective to monitor and manage Bank’s operations, yearly financial statements before submission to board
performance and strategy. approval.
• review the adequacy of internal audit function.
Executive Committee (EC) • review the management discussion and analysis before
In accordance with Bangladesh Bank instruction, the Board of disclosing in the annual report.
Directors of Midland Bank PLC. has formed Executive Committee • review statement of all related party transactions submitted
with 7 (Seven) members. The Executive Committee is responsible by the management.
for the review of the policies and guidelines issued by Bangladesh • review management letters or letter of internal control
Bank in terms of credit and other operations of the banking weakness issued by statutory auditors.
industry. The Committee supervises the degree of execution of the • oversee the determination of audit fees based on scope and
policies and guidelines entrusted with the management. In the magnitude, level of expertise deployed and time required for
normal course of business, the EC of the Board approves the credit effective audit and evaluate the performance of external
proposals in line with approved policy of the Board. Management is auditors.
advised to exercise due diligence of the credit policy and risk • oversee the proceeds raised through Initial Public Offering
management at the time of assessing credit proposals. The EC in (IPO) or repeat public offer (RPO) or right share offer have
its continuous efforts guides the Management to develop uniform been utilized as per the purposes stated in the relevant offer
and minimum acceptable credit standards for the Bank. During the document or prospectus approved by the commission.
year 2023, 14 (fourteen) meetings of Board Executive Committee
were held. MDB Board Audit Committee held 05 (five) meetings in 2023 and
had thorough discussions and review session with the CEO, Head
Board Audit Committee (BAC) of Internal Control & Compliance, External Auditors etc. Highlights
The Board Audit Committee meets the external auditor and of the Audit Committee activity during the year 2018 are appended
provides them the recommendations on the overall audit plan. in the Report of the Audit Committee at page no 44 - 46.
They also discuss the auditor’s interaction with the Management
and the Management’s response as well as corrective actions Risk Management Committee (RMC)
taken. They review the quarterly financials and approve Quarterly, According to Bank Company (Amendment upto 2023) and BRPD
Half Yearly and Annual financial reports of the Bank. The Audit Circular Letter No.02, dated 11 February 2024, the Bank has
Committee also meets the Head of Internal Control & Compliance constituted Risk Management Committee (RMC). RMC has been
as well as Head of Internal Auditor of the Bank to review their formed by the Board essentially to play an effective role in
charter, scopes of work and the organizational structure. The reducing ensued and potential risks in the process of
inspection reports from regulators and internal Audit are also implementation of Bank’s strategy and work plan as devised by the
presented to the Audit Committee for their review and action. The Board of Directors. The Committee, in addition, ensures efficient
Board Audit Committee of MDB consists of 4 (four) Directors and is execution of related responsibilities of the Board. The RMC has the
constituted with the members not included in the Executive responsibility of oversight as regards, whether proper risk
Committee of the Board. Company Secretary is the member mitigation processes/methods are being applied and required
secretary to the committee. capital and provisions are maintained by management after it has
duly identified and measured credit risk, foreign exchange risk,
The Board Audit Committee assists the Board in carrying out its internal control & compliance risk, money laundering risk, ICT risk,
responsibilities relating to: operating risk, interest risk, liquidity risk and other risks. Risk
Management Committee of Midland Bank consists of 5 (Five)
• integrity of the financial statements and any related formal members chosen from the Board. The Company Secretary of the
announcements; Bank acts as the secretary to the Committee. All the committee
• overseeing the relationship between the Board and its members have honesty, integrity and ability to invest adequate
external auditors; time in affairs of the Committee. All of the members of RMC have
• review of the Bank’s internal controls, including financial adequate insight about banking business, Bank’s operation, various
controls; risks along with knowledge about their own duties and
• assessment of the effectiveness of the internal audit, responsibilities. Risk Management Committee has the following
compliance and risk management functions; responsibilities:
• review of the internal and external audit plans and
subsequent findings; • To design mechanism to determine and control risks
• selection of accounting policies namely Bangladesh • To prepare organizational structure
Accounting Standards (BAS) and • To review and approve risk management policy
• To implement data preservation and reporting system
International Accounting Standards (IAS); • To supervise the status of implementation of all risk
• review of the auditors’ report; management principles
• obligations under applicable laws and regulations including • To ensure compliance on directives issued from regulatory
Securities and Exchange Commission Guidelines; and bodies from time to time.
• review of the effectiveness of the services provided by the MDB Risk Management Committee (RMC) held 04 (four) meetings
external auditors and other related matters. in 2023 and had thorough discussions and review session with the

Corporate Governance
Midland Bank PLC.
92 Annual Report 2023
CEO and CRO on various risk related issues. Highlights of the Risk of information in order to familiarize them with the Bank’s
Management Committee activity during the year 2023 are operations, management and governance structures; these include
appended in the report of the Risk Management Committee. the functioning of the Board and the role of the key committees.
On an ongoing basis, the Directors receive briefings appropriate to
Internal Control & Compliance the business of the Bank. The Directors have access to the advice
The Directors acknowledge their responsibility for building the and services of the Company Secretary, who is responsible for
systems of internal control and for reviewing their effectiveness at advising the Board on all governance issues along with relevant
regular interval. Such systems are designed to control, rather than information to enable them to consider issues for decision.
eliminate the risk of failure to achieve business objectives and can Committees of the Board have similar access and are provided
provide reasonable, but not absolute, assurance against material with sufficient resources to carry out their duties.
misstatement or loss. The losses could stem from the nature of the
Bank’s business in undertaking a wide range of financial services Election / Re-election of Directors
that inherently entail varying degrees of risk. The Bank has As per Article-138 and 139 of the Bank, 05 (Five) Honorable
established a comprehensive framework to document and test its Directors retired in the 10th Annual General Meeting (AGM) of the
internal control structures and procedures conforming to the Bank to be held on 14 June 2023 and they were also reelected in
requirements of regulatory bodies. The Bank’s overall control the same AGM as per Articale-140 of the Bank and post-facto
systems include: approval was obtained from Bangladesh Bank on reappointment
of the Directors so retired. In the 11th AGM of the Bank, one third
• A clearly defined organization structure with defined members of the Board of Directors (except Managing Director and
authority of limits and reporting mechanisms to senior Independent Directors) shall retire and election/re-election will
management and to the Board of Directors; take place as per the Companies Act 1994 and relevant provisions
• Establishment of Committees with duties and responsibilities of the Articles of Association of the Bank.
in core policy areas;
• A complete set of policies and procedures related to Communications with the Shareholders
financial controls, asset and liability management (including MDB makes sincere efforts to disseminate integrated operational
major risks in financial managements); and financial output and initiatives to shareholders to enable them
• Code of Conduct setting out the standards of behavior to rightly assess future potentials of the Bank. Relations and
expected of all levels of directors, officers and employees; and communication with stockholders are given high priority. The Bank
• Regular reporting by business divisions/units that helps expresses its financial health and achievement through annual
assessing the progress against business objectives to be report which contains a balanced, clear assessment of its
monitored, trends to be evaluated and variances to be performance and prospects. It also uses its internet website
acted upon. www.midlandbankbd.net to provide investors with the full text of
the annual report and with copies of presentation to regulatory
The controls as outlined above are rooted within the operations of bodies, analysts and investors as they are made so that
the Board and reviewed by Bank’s Internal Audit. The review information is available to all relevant targets. The annual report
focuses the areas of greater risk as identified by risk analyst. The containing audited financial statements for the respective year are
Directors confirm that the Board, by properly engaging the also dispatched to the shareholders well ahead of Annual General
Committees, has reviewed the effectiveness of internal control for Meeting (AGM) and audited financial statements for any particular
the year ended 31 December 2023. This process ensured an internal year are published in two leading circulated Bangla and English
control system to the tune of best financial reporting practice dailies. The Quarterly and half-yearly unaudited financial
throughout the financial year and upto the date of the signing of statements are also submitted to the regulatory bodies in
these financial statements. There was an assessment of the compliance with regulations. Our policy focuses on constructive
ongoing process for the identification, evaluation and management use of the AGM and all shareholders are encouraged to participate.
of individual risks and of the role of the various committees and Shareholders are open to ask questions at the AGM.
Bank’s risk management actions and the extent to which various
significant challenges are understood and addressed. Commitment to other Stakeholders
We always honor the rights and interests of other groups of
Management Committees of the Bank stakeholders giving a fair delicacy. In addition to our respected
MDB has various management teams which have been shareholders, we have our valued customers, the core of our
established by the Board and have delegated the authority to banking business. There remain our internal customers, our
manage the Bank’s day-to-day affairs of business. A model employees, the craftsmen of our everyday success. Others include
Corporate Governance structure endows the Management with a suppliers, government, regulatory bodies, society, community,
collective mandate under the leadership of Managing Director & media people and any other group having interest in the Bank.
CEO to run day-to-day operation in the best interest of the
stakeholders. As required by compliance as well as in pursuance of The Community
strategic goal, the Bank has constituted designated committees In our sustainability planning, we recognize the importance of
with specific objectives, apart from various functional departments. contributing to the society and the community as ardently as
possible. We are conscious that Bank’s financed projects pose no
Professional Development adverse impacts on environment. Clients are also made aware of
All Directors, after appointment, are provided with a complete set environmental compliance along with other regulatory

Corporate Governance
Midland Bank PLC.
93 Annual Report 2023
compliance, such as, credit rating. allocation is made for CSR with real or potential conflicts of interest. In this process,
initiatives every year to optimize values for the community and connected transactions or related party transactions are brought
the habitat. to focus. Regulations require that Directors should report changes
in their holdings of Bank’s shares through buy or sell to the
The Government Bangladesh Securities and Exchange Commission (BSEC) before
MDB is always tax compliant as a responsible corporate business one month of such transactions. Besides, the Bank watches over
community. The Bank makes payment of corporate tax on time and insider trading. To guard against any illegal access to inside
sometimes even before the time it takes effect. The Bank deducts information and subsequent undue advantage from price sensitive
excise duty, withheld tax and VAT on time from employee’s salary, information in advance, the Bank circulates awareness guidelines
as well as customers and vendors, and deposits to Government on the issue to its staff, executives and the Directors for their
Treasury on time. During 2023, MDB paid advance corporate tax of knowledge and observance. The BSEC guidelines prohibit the
BDT 1,332 million while deposited withheld tax of BDT 704 million, directors, employees, auditors and any people engaged in the
VAT of BDT 62 million and Excise Duty of BDT 116 million. auditing activities, beneficiary owners from buying or selling,
offering to buy/sell, or motivating others to buy/sell the Bank’s
Bank’s contribution to government exchequer during the last 5 shares during the period of two months immediately before the
years are given below: closing date of income year till the date of approval of audited
(BDT in Million) financial statements by the Board. Accordingly, regulatory
Particular 2023 2022 2021 2020 2019 compliance is made effective in mitigating the conflicts of interest
Advance Corporate Tax 1,332 1,229 917 451 448 among the shareholders and other stakeholders of the Bank.
Withheld VAT, Tax & Excise Duty 882 731 600 554 489
Total 2214 1960 1517 1005 937 Related Party Transactions
The Bank in its normal course of business, conducted financial
Conflicts of Interest transactions with some entities or persons that fall within the
The Board and the Management effectively refrain from pursuing purview of ‘Related Party’ as contained in BAS 24 (Related Party
other interest at the cost of the organization. Given the context, Disclosures) and as defined in Bangladesh Bank BRPD circular
MDB remains watchful about the extent of agency cost and moral 04, dated 23 February 2014 (Notes to the Financial Statement,
hazard both with relation to the Board and the Management along note # 44).

Corporate Governance
Midland Bank PLC.
94 Annual Report 2023
 Report to the Shareholders of Midland Bank PLC. on
compliance on the Corporate Governance Code
We have examined the compliance status to the Corporate Governance Code by Midland Bank PLC. for the year ended on 31
December 2023. This Code relates to the Notification No. BSEC/CMRRCD/2006-158/207/Admin/80, dated 03 June 2018 of the
Bangladesh Securities and Exchange Commission and it’s subsequent amendment.

Such compliance with the Corporate Governance Code is the responsibility of the Company. Our examination was limited to the
procedures and implementation thereof as adopted by the Management in ensuring compliance to the conditions of the
Corporate Governance Code.

This is a scrutiny and verification and an independent audit on compliance of the conditions of the Corporate Governance Code
as well as the provisions of relevant Bangladesh Secretarial Standards (BSS) as adopted by the Institute of Chartered Secretaries
of Bangladesh (ICSB) in so far as those standards are not inconsistent with any conditions of this Corporate Governance Code.

We state that we have obtained all the information and explanations, which we have required, and after due scrutiny and
verification thereof, we report that, in our opinion:

a) The Company has complied with the conditions of the Corporate Governance Code as stipulated in the above mentioned
Corporate Governance Code issued by the Commission except those mentioned in the statement of compliance status;

b) The Company has complied with the provisions of the relevant Bangladesh Secretarial Standards (BSS) as adopted by the
Institute of Chartered Secretaries of Bangladesh (ICSB) as required by this Code;

c) Proper books and records have been kept by the Company as required under the Companies Act, 1994, the Securities Laws
and other relevant laws; and

d) The governance of the Company is satisfactory.

For K. M. HASAN & CO.

Chartered Accountants

Place: Dhaka Md. Amirul Islam FCA, FCS

Dated: 30 April 2024 Senior Partner

Corporate Governance
Midland Bank PLC.
95 Annual Report 2023
Compliance Status on Corporate Governance Guidelines
Bangladesh Securities and Exchange Commission (BSEC) has introduced a new checklist for Compliance Status of Corporate
Governance Guidelines vide Notification dated 03 June 2018 for the Companies listed with Stock Exchanges. Bank’s Status of
compliance is appended below:
Status of Compliance with the conditions imposed by the Bangladesh Securities and Exchange Commission’s Notification
No.SEC/CMRRCD/2006-158/207/Admin/80 dated 03 June 2018 issued under section 2CC of the Securities and Exchange Ordinance, 1969:

(Report under condition no. 9) (Annexure C)

Compliance Status ( has
been Put in the
Remarks (if
Condition No. Title appropriate column)
any)
Not
Complied
complied
1 Board of Directors:
1 (1) Size of the Board of Directors : The total number of members
of a company’s Board of Directors (he reinafter referred to as
“Board”) shall not be less than 5 (five) and more than 20
(twenty).
1 (2) Independent Directors:
1 (2) (a) At least 2(two) directors or one-fifth (1/5) of the total number
of directors in the company’s Board, whichever is higher,
shall be independent directors; any fraction shall be
considered to the next integer or whole number for
calculating number of independent director(s)
1 (2) (b) Without contravention of any provision of any other laws, for the purpose of this clause, an “independent director”
means a director
1 (2) (b) (i) Who either does not hold any share in the company or holds less than Does not hold any
shares in the Bank
one percent (1%) shares of the total paid-up shares of the company; (company).
1 (2) (b) (ii) Who is not a sponsor of the company or is not connected
with the company’s any sponsor or direct or or nominated
director or shareholder of the company or any of its
associates, sister concerns, subsidiaries and parents or
holding entities who holds one percent (1%) or more shares
of the total paid -up shares of the company on the basis of
family relat ionship and his or her family members also shall
not hold above mentioned shares in the company:
Provided that spouse, son, daughter, father, mother, brother,
sister, son-in-law and daughter -in-law shall be considered as
family members;
1 (2) (b) (iii) Who has not been an executive of the company in
immediately preceding 2 (two) financial years;
1 (2) (b) (iv) Who does not have any other relationship, whether
pecuniary or otherwise, with the company or its subsidiary
or associated companies;
1 (2) (b) (v) Who is not a member or TREC (Trading Right Entitlement
Certificate) holder, director or officer of any stock exchange;
1 (2) (b) (vi) Who is not a shareholder, director excepting independent
director or officer of any member or TREC holder of stock
exchange or an intermediary of the capital market;
1 (2) (b) (vii) Who is not a partner or an executive or was not a partner or
an executive during the preceding 3 (three) years of the
concerned company’s statutory audit firm or audit firm engaged in
internal audit services or audit firm conducting special audit or
professional certifying compliance of this Code;
1 (2) (b) (viii) Who is not independent director in more than 5 (five) listed companies;

Corporate Governance Compliance Status

Midland Bank PLC.
96 Annual Report 2023
1 (2) (b) (viii) Who is not independent director in more than 5 (five) listed
companies;
1 (2) (b) (ix) who has not been reported as a defaulter in the latest Credit
Information Bureau (CIB) report of Bangladesh Bank for
non-payment of any loan or advance or obligation to a bank
or a financial institution; and
1 (2) (b) (x) Who has not been convicted for a criminal offence involving
moral turpitude;
1 (2) (c) The independent director(s) shall be appointed by the Board
and approved by the shareholders in the Annual General
Meeting (AGM):
“Provided that the Board shall appoint the independent
director, subject to prior consent of the Commission, after
due consideration of recommendation of the Nomination
and Remuneration Committee (NRC) of the company;”
1 (2) (d) The post of independent director(s) cannot remain vacant No Vacancy
for more than 90 (ninety) days; and occurred
1 (2) (e) The tenure of office of an independent director shall be for
a period of 3 (three) years, which may be extended for 1 (one)
tenure only:
Provided that a former independent director may be
considered for reappointm ent for another tenure after a
time gap of one tenure, i.e., three years from his or her
completion of consecutive two tenures [i.e. six years]:
Provided further that the independent director shall not be
subject to retirement by rotation as per the †Kv¤úvbx AvBb,
1994 (1994 m‡bi 18bs AvBb) (Companies Act, 1994).
Explanation : For the purpose of counting tenure or term of
independent director, any partial term of tenure shall be
deemed to be a full tenure.
1 (3) Qualification of Independent Director:
1 (3) (a) Independent director shall be a knowledgeable individual
with integrity who is able to ensure compliance with financial
laws, regulatory requirements and corporate laws and can
make meaningful contribution to the business;
1 (3) (b) (i) He or she shall be a Business Leader who is or was a
promoter or director of an unlisted company having
minimum paid-up capital of Tk.100.00 million or any listed Not Applicable
company or a member of any national or international
chamber of commerce or registered business association; or
1 (3) (b) (ii) He or she shall be a Corporate Leader who is or was a top
level executive not lower than Chief Executive Officer or Amongst the four
Independent
Managing Director or Deputy Managing Director or Chief
Directors, Mr.
Financial Officer or Head of Finance or Accounts or
Mahbubul Hady
Company Secretary or Head of Internal Audit and
Fazle Rab and Mr.
Compliance or Head of Legal Service or a candidate with Khandaker Tanveer
equivalent position of an unlisted company having minimum Shamsul Islam are
paid-up capital of Tk. 100.00 million or of a listed company; Corporate Leaders
or who worked in the
Explanation: Top level executive in cludes Managing equivalent positions
Director (MD) or Chief Executive Officer (CEO), Additional or as stipulated.
Deputy Managing Director (AMD or DMD), Chief Operating Detailed biography
Officer (COO), Chief Financial Officer (CFO), Company and their expertize
Secretary (CS), Head of Internal Audit and Compliance mentioned in their
(HIAC), Head of Administration and Human Resources or profile furnished
with the annual
equivalent positions and same level or ranked or salaried
report.
officials of the company.
1 (3) (b) (iii) He or she shall be a Former or existing official of government Mr. Nazimuddin Chowdhury
and Mr. Mohammad
or statutory or autonomous or regulatory body in the position Asif-uz-zaman are veteran Civil
Servant, worked as Sectretary
not below 5th Grade of the national pay scale, who has at and Senir Secretary of GoB
least educational background of bachelor degree in respectively.Detailed biography
and their expertize mentioned
economics or commerce or business or Law: in their profile furnished with
the annual report.

1 (3) (b) (iv) He or she shall be a University Teacher who has educational
background in Economics or Commerce or Business Studies Not Applicable
or Law; or

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Midland Bank PLC.
97 Annual Report 2023
1 (3) (b) (v) He or she shall be a Professional who is or was an advocate
practicing at least in the High Court Division of Bangladesh
Supreme Court or a Chartered Accountant or Cost and
Management Account ant or Chartered Financial Analyst or Not Applicable
Chartered Certified Accountant or Certified Public
Accountant or Chartered Management Accountant or
Chartered Secretary or equivalent qualification;
1 (3) (c) The independent director shall have at least 10 (ten) years of
experiences in any field mentioned in clause (b);
1 (3) (d) In special cases, the above qualifications or experiences may
be relaxed subject to prior approval of the Commission. Not Applicable
1 (4) Duality of Chairperson of the Board of Directors and Managing Director or Chief Executive Officer:
1 (4) (a) The positions of the Chairperson of the Board and the
Managing Director (MD) and/or Chief Executive Officer
(CEO) of the company shall be filled by different individuals;
1 (4) (b) The Managing Director (MD) and/or Chief Executive Officer
(CEO) of a listed company shall not hold the same position
in another listed company;
1 (4) (c) The Chairperson of the Board shall be elected from among
the non-executive directors of the company;

1 (4) (d) The Board shall clearly define respective roles and Roles and responsibilities
responsibilities of the Chairperson and the Managing are defined as per
Bangladesh Bank’s guidelines
Director and/or Chief Executive Officer; and AOA of the Bank.

1 (4) (e) In the absence of the Chairperson of the Board, the

remaining members may elect one of themselves from
No such
nonexecutive directors as Chairperson for that particular
event occurred
Board’s meeting; the reason of absence of the regular
Chairperson shall be duly recorded in the minutes.
1 (5) The Directors’ Report to Shareholders shall include the following additional statements or disclosures:
1 (5) (i) An industry outlook and possible future developments in the
industry;
1 (5) (ii) The segment -wise or product -wise performance;
1 (5) (iii) Risks and concerns including internal and extern al risks
factors, threat to sustainability and negative impact on
environment, if any;
1 (5) (iv) A discussion on Cost of Goods sold, Gross Profit Margin and
Not Applicable
Net Profit Margin, where applicable;
1 (5) (v) Discussion on continuity of any extra -ordinary activities and
Not Applicable
their implications (gain or loss);
1 (5) (vi) A detailed discussion on related party transactions along
with a statement showing amount, nature of related party,
nature of transactions and basis of transactions of all related
party transactions;
1 (5) (vii) A statement of utilization of proceeds raised through public
Not Applicable
issues, rights issues and/or any others instruments;
1 (5) (viii) An explanation if the financial results deteriorate after the
company goes for Initial Public Offering (IPO), Repeat Public Not Applicable
Offering (RPO), Rights Share Offer, Direct Listing, etc.;
1 (5) (ix) An explanation on any significant variance that occurs
between Quarterly Financial performances and Annual Not Applicable
Financial Statements;
1 (5) (x) A statement of remuneration paid to the Directors including
Independent Directors;
1 (5) (xi) A statement that the financial statements prepared by the
management of the issuer company present fairly its state
of affairs, the result of its operati ons, cash flows and changes
in equity;

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Midland Bank PLC.
98 Annual Report 2023
1 (5) (xii) A statement that proper books of account of the issuer
company have been maintained;
1 (5) (xiii) A statement that appropriate accounting policies have been
consistently applied in preparation of the financial
statements and that the accounting estimates are based on
reasonable and prudent judgment;
1 (5) (xiv) A statement that International Accounting Standards
(IAS)/International Financial Reporting Standards (IFRS), as
applicable in Bangla desh, have been followed in preparation
of the financial statements and any departure there from
has been adequately disclosed;
1 (5) (xv) A statement that the system of internal control is sound in
design and has been effectively implemented and
monitored;
1 (5) (xvi) A statement that minority shareholders have been
protected from abusive actions by, or in the interest of, Not Applicable
controlling shareholders acting either directly or indirectly
and have effective means of redress;
1 (5) (xvii) A statem ent that there is no s ignificant doubt upon the
issuer company’s ability to continue as a going concern, if
the issuer company is not considered to be a going concern,
the fact along with reasons thereof shall be disclosed;
1 (5) (xviii) An explanatio n that significant deviations from the lat year’s
operating results of the issuer company shall be highlighted Not Applicable
and the reasons thereof shall be explained;
1 (5) (xix) A statement where key operating and financial data of at
least preceding 5 (five) ye ars shall be summarized;
1 (5) (xx) An explanation on the reasons if the issuer company has not Not Applicable
declared dividend (cash or stock) for the year; (5% cash dividend declared)

1 (5) (xxi) Board’s statement to the effect that no bonus share or stock
Not Applicable
dividend has been or shall be declared as interim dividend;
1 (5) (xxii) The total number of Board meetings held during the year
and attendance by each Director;
1 (5) (xxiii) Pattern of shareholding disclosing the aggregate number of shares (along with name wise details
where stated below) held by:
1 (5) (xxiii) (a) Parent or Subsidiary or Associated Companies and other
Not Applicable
related parties;
1 (5) (xxiii) (b) Directors, Chief Executive Officer, Company Secretary, Chief
Financial Officer, Head of Internal Audit and Compl iance and
their spouses and minor children;
1 (5) (xxiii) (c) Executives (top 5 (five) salaried employees of the company,
other than stated in 1 (5) (xxiii)(b); and
1 (5) (xxiii) (d) Shareholders holding ten percent (10%) or more voting
Not Applicable
interest in the company;
1 (5) (xxiv) In case of the appointment or reappointment of a director, a disclosure on the following information
to the shareholders:
1 (5) (xxiv) (a) A brief resume of the director;
1 (5) (xxiv) (b) Nature of his or her experti se in specific functional areas; and
1 (5) (xxiv) (c) Names of companies in which the person also holds the
directorship and the membership of committees of the Board;
1 (5) (xxv) A Management’s Discussion and Analysis signed by CEO or MD presenting detailed analysis of the
company’s position and operations along with a brief discussion of changes in the financial statements,
among others, focusing on:
1 (5) (xxv) (a) Accounting policies and estimation for preparation of Refer to directors’
financial statements; Report
1 (5) (xxv) (b) Changes in accounting policies and estimation, if any, clearly
No changes
describing the effect on financial performance or results and occurred during
financial position as well as cash flows in absolute figure for the year
such changes;

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Midland Bank PLC.
99 Annual Report 2023
1 (5) (xxv) (c) Comparative a nalysis (including effects of inflation) of
financial performance or results and financial position as Refer to directors’
well as cash flows for current financial year with immediate Report
preceding five year’s explaining reasons thereof;
1 (5) (xxv) (d) Compare such financia l performance or results and financial
Refer to directors’
position as well as cash flows with the peer industry
Report
scenario;
1 (5) (xxv) (e) Briefly explain the financial and economic scenario of the Refer to directors’
country and the globe; Report
1 (5) (xxv) (f) Risks and concerns issues rel ated to the financial
Refer to directors’
statements explaining such risks and concerns mitigation
Report
plan of the company; and
1 (5) (xxv) (g) Future plan or projection or forecast for company’s
operation, performance and financial position, with Refer to directors’
justification thereof i.e., actual position shall be explained to Report
the shareholders in the next AGM;
1 (5) (xxvi) Declaration or certification by the CEO and the CFO to the
Board as required under condition No. 3(3) shall be disclosed
as per Annexure-A;
1 (5) (xxvii) The report as well as certificate regarding compliance of
conditions of this Code as required under condition No. 9 shall
be disclosed as per Annexure-B and Annexure-C;
1 (5) (xxviii) The Directors’ report to the shareholders does not require to
include the business strategy or technical specification related
to products or services, which have business confidentiality.
1 (6) Meetings of the Board of Directors : The company shall
conduct its Board meet ings and record the minutes of the
meetings as well as keep required books and records in line
with the provisions of the relevant Bangladesh Secretarial
Standards (BSS) as adopted by the Institute of Chartered
Secretaries of Bangladesh (ICSB) in so far as those standards
are not inconsistent with any condition of this Code;
1 (7) Code of Conduct for the Chair person, other Board Members and Chief Executive Officer:
1 (7) (a) The Board shall lay down a Code of Conduct based on the
recommendation of the Nomination and Remuneration
Committee (NRC) at condition No.6, for the Chairperson of Not Applicable
the Board, other Board members and Chief Executive Officer
of the Company;
1 (7) (b) The Code of Conduct as determined by the NRC shall be As per Bangladesh Bank
letter ref: BRPD/(R-1)717/
posted on the website of the company including, among 2021-5064 dated 16 June
2021, advised the
others, prudent conduct and behavior, confidentiality, scheduled banks that
since formation of NRC
conflict of interest, compliance with laws, rules and is contradictory with the
Bank Company Act, 1991;
the scheduled Banks
regulations, prohibition of insider trading, relationship with have no scope to
comply with the
environment, employees, customers and suppliers and provisions relating to
NRC of Corporate
independency. Governance Code.
2 Governance of Board of Directors of Subsidiary Company:
2 (a) Provisions relating to the composition of the Board of the
holding company shall be made applicable to the Not Applicable
composition of the Board of the subsidiary company;
2 (b) At least 1 (one) independent director on the Board of the
holding company shall be a director on the Board of the Not Applicable
subsidiary company;
2 (c) The minutes of the Board meeting of the subsidiary
company shall be placed for review at the following Board Not Applicable
meeting of the holding company;
2 (d) The minutes of the respective Board meeting of the holding
company shall state that they have reviewed the affairs of Not Applicable
the subsidiary company also;
2 (e) The Audit Committee of the holding company shall also
review the financial statements, in particular the Not Applicable
investments made by the subsidiary company.
3 Managing Director (MD) or Chief Executive Officer (CEO), Chief Financial Officer (CFO), Head of
Internal Audit and Compliance (HIAC) and Company Secretary (CS):

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Midland Bank PLC.
100 Annual Report 2023
3 (1) Appointment:
3 (1) (a) The Board shall appoint a Managing Director (MD) or Chief
Executive Officer (CEO), a Company Secretary (CS), a Chief
Financial Officer (CFO) and a Head of Internal Audit and
Compliance (HIAC);
3 (1) (b) The positions of the Managing Director (MD) or Chief
Executive Officer (CEO), Company Secretary (CS), Chief
Financial Officer (CFO) and Head of Internal Audit and
Compliance (HIAC) shall be filled by different individuals;
3 (1) (c) The MD or CEO, CS, CFO and HIAC of a listed company shall
not hold any executive position in any other company at the
same time:
Provided that CFO or CS of any listed company may be appointed
for the same position in any other listed or non-listed company
under the same group for reduction of cost or for technical
expertise, with prior approval of the Commission:
Provided further that the remuneration and perquisites of
the said CFO or CS shall be shared by appointing companies
proportionately;
3 (1) (d) The Board shall clearly define respective roles,
responsibilities and duties of the CFO, the HIAC and the CS;
3 (1) (e) The MD or CEO, CS, CFO and HIAC shall not be removed
from their position without approval of the Board as well as No such event
occurred
immediate dissemination to the Commission and stock
exchange(s).
3 (2) Requirement to attend Board of Directors’ Meetings:
The MD or CEO, CS, CFO and HIAC of the company shall
attend the meetings of the Board:
Provided that the CS, CFO and/or the HIAC shall not attend
such part of a meeting of the Board which involves
consideration of an agenda item relating to their personal matters.
3 (3) Duties of Managing Director (MD) or Chief Executive Officer (CEO) and Chief Financial Officer (CFO):
3 (3) (a) The MD or CEO and CFO shall certify to the Board that they
have reviewed financial statements for the year and that to
the best of their knowledge and belief:
3 (3) (a) (i) These statements do not contain any materially untrue
statement or omit any material fact or contain statements
that might be misleading; and
3 (3) (a) (ii) These statements together present a true and fair view of
the company’s affairs and are in compliance with existing
accounting standards and applicable laws;
3 (3) (b) The MD or CEO and CFO shall also certify that there are, to
the best of knowledge and belief, no transactions entered
into by the company during the year which are fraudulent,
illegal or in violation of the code of conduct for the
company’s Board or its members;
3 (3) (c) The certification of the MD or CEO and CFO shall be
disclosed in the Annual Report.
4 Board of Directors’ Committee:
For ensuring good governance in the company, the Board shall have at least following sub - committees:
4 (i) Audit Committee; and
4 (ii) Nomination and Remuneration Committee. As per Bangladesh Bank’s guideline
5 Audit Committee:
5 (1) Responsibility to the Board of Directors:
5 (1) (a) The company shall have an Audit Committee as a
subcommittee of the Board;
5 (1) (b) The Audit Committee shall assist the Board in ensuring that
the financial statements reflect true and fair view of the state
of affairs of the company and i n ensuring a good monitoring
system within the business;
5 (1) (c) The Audit Committee shall be responsible to the Board; the duties
of the Audit Committee shall be clearly set forth in writing.
5 (2) Constitution of the Audit Committee:

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Midland Bank PLC.
101 Annual Report 2023
5 (2) (a) The Audit Committee shall be composed of at least 3 (three)
members;
5 (2) (b) The Board shall appoint members of the Audit Committee
who shall be non -executive directors of the company
excepting Chairperson of the Board and shall include at least
1 (one) independent director;
5 (2) (c) All members of the audit committee should be “financially
literate” and at least 1 (one) member shall have accounting
or related financial management background and 10 (ten)
years of such experience;
Explanat ion: The term “financially literate” means the
ability to read and understand the financial statements like
statement of financial position, statement of comprehensive
income, statement of changes in equity and cash flows
statement and a person will be considered to have
accounting or related financial management expertise if he
or she possesses professional qualification or Accounting or
Finance graduate with at least 10 (ten) years of corporate
management or professional experiences.
5 (2) (d) When the term of service of any Committee member expires
or there is any circumstance causing any Committee
member to be unable to hold office before expiration of the
term of service, thus making the number of the Committee
No such
members to be lower than the prescribed number of 3
(three) persons, the Board shall appoint the new Committee event
member to fill up the vacancy immediately or not later than occurred
60 (sixty) days from the date of vacancy in the Committee to
ensure continuity of the performance of work of the Audit
Committee;
5 (2) (e) The company secretary shall act as the secretary of the
Committee;
5 (2) (f) The quorum of the Audit Committee meeting shall not
constitute without at least 1 (one) independent director.
5 (3) Chairperson of the Audit Committee:
5 (3) (a) The Board shall select 1 (one) member of the Audit
Committee to be Chairperson of the Audit Committee, who
shall be an independent director;
5 (3) (b) In the absence of the Chairperson of the Audit Committee,
the remaining members may e lect one of themselves as
No such
Chairperson for that particular meeting, in that case there
event
shall be no problem of constituting a quorum as required
occurred
under condition No. 5(4)(b) and the reason of absence of the
regular Chairperson shall be duly recorded in the mi nutes.
5 (3) (c) Chairperson of the Audit Committee shall remain present in
the Annual General Meeting (AGM):
The Chairperson
Provided that in absence of Chairperson of the Audit
of the Audit
Committee, any other member from the Audit Committee
Committee was
shall be selected to be pres ent in the annual general
present in the
meeting (AGM) and reason for absence of the Chairperson
10th AGM
of the Audit Committee shall be recorded in the minutes of
the AGM.
5 (4) Meeting of the Audit Committee:
5 (4) (a) The Audit Commi ttee shall conduct at least its four
meetings in a financial year:
Provided that any emergency meeting in addition to regular
meeting may be convened at the request of any one of the
members of the Committee;
5 (4) (b) The quorum of the meeting of the Audit Committee shall be
constituted in presence of either two members or two -third
of the members of the Audit Committee, whichever is
higher, where presence of an independent director is a must.

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Midland Bank PLC.
102 Annual Report 2023
5 (5) Role of Audit Committee (the Audit Committee shall):
5 (5) (a) Oversee the financial reporting process;
5 (5) (b) Monitor choice of accounting policies and principles;
5 (5) (c) Monitor Internal Audit and Compliance process to ensure
that it is adequately resourced, including approval of the
Internal Audit and Compliance Plan and review of the
Internal Audit and Compliance Report;
5 (5) (d) Oversee hiring and performance of external auditors;
5 (5) (e) Hold meeting with the external or statutory auditors for
review of the annual financial statements before submission
to the Board for approval or adoption;
5 (5) (f) Review along with the management, the annual financial
statements before submission to the Board for approval;
5 (5) (g) Review along with the management, the quarterly and half
yearly financial statements before submission to the Board
for approval;
5 (5) (h) Review the adequacy of internal audit function;
5 (5) (i) Review the Management’s Discussion and Analysis before
disclosing in the Annual Report;
5 (5) (j) Review statement of all related party transactions submitted
by the management;
5 (5) (k) Review Management Letters or Letter of Internal Control
weakness issued by statutory auditors;
5 (5) (l) Oversee the determination of audit fees based on scope and
magnitude, level of expertise deployed and time required for
effective audit and evaluate the performance of external
auditors; and
5 (5) (m) Oversee whether the proceeds raised through Initial Public
Offering (IPO) or Repeat Public Offering (RPO) or Rights
Share Offer have been utilized as per the purposes stated in
relevant offer document or prospectus approved by the
Commission: Provided that the management shall disclose
to the Audit Committee about the uses or applications of the
proceeds by major category (capital expenditure, sales and Not Applicable
marketing expenses, working capital, etc.), on a quarterly
basis, as a part of their quarterly declaration of financial
results: Provided further that on an annual basis, the
company shall prepare a statement of the proceeds utilized
for the purposes other than those stated in the offer
document or prospectus for publication in the Annual
Report along with the comments of the Audit Committee.
5 (6) Reporting of the Audit Committee :
5 (6) (a) Reporting to the Board of Directors -
5 (6) (a) (i) The Audit Committee shall report on its activities to the
Board.
5 (6) (a) (ii) The Audit Committee shall immediately report to the Board on the following findings, if any:
5 (6) (a) (ii) (a) Report on conflicts of interests; Not Applicable
5 (6) (a) (ii) (b) Suspected or presumed fraud or irregularity or material
defect identified in the internal audit and compliance Not Applicable
process or in the financial statements;
5 (6) (a) (ii) (c) Suspected infringement of laws, regulatory compliances
Not Applicable
including securities related laws, rules and regulations; and
5 (6) (a) (ii) (d) Any other matter which the Audit Committee deems
Not Applicable
necessary shall be disclosed to the Board immediately;
5 (6) (b) Reporting to the Authorities: If the Audit Committee has
reported to the Board about anything which has material
impact on the financial condition and results of operation
Not Applicable
and has discussed with the Board and the management that
any rectification is necessary and if the Audit Committee
finds that such rectification has been unreasonably ignored,

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Midland Bank PLC.
103 Annual Report 2023
 the Audit Committee shall report such finding to the
Commission, upon reporting of such matters to the Board
for three times or completion of a period of 6 (six) months
from the date of first reporting to the Board, whichever is
earlier.
5 (7) Reporting to the Shareholders and General Investors:
Report on activities carried out by the Audit Committee,
including any report made to the Board under condition No .
Not Applicable
5(6)(a)(ii) above during the year, shall be signed by the
Chairperson of the Audit Committee and disclosed in the
annual report of the issuer company.
6 Nomination and Remuneration Committee (NRC).
6 (1) Responsibility to the Board of Directors:
6 (1) (a) The company shall have a Nomination and Remuneration
Committee (NRC) as a sub -committee of the Board;
6 (1) (b) The NRC shall assist the Board in formulation of the
nomination criteria or policy for determining qualifications,
positive at tributes, experiences and independence of
directors and top level executive as well as a policy for
formal process of considering remuneration of directors, top Not Applicable.
level executive;
(As per
6 (1) (c) (c) The Terms of Reference (ToR) of the NRC shall be clearly
Bangladesh
set forth in writing covering the areas stated at the condition Bank letter ref:
No. 6(5)(b). BRPD/(R-1)717/
6 (2) Constitution of the NRC: 2021-5064
6 (2) (a) The Committee shall comprise of at least three members dated 16 June
including an independent director; 2021, advised
the scheduled
6 (2) (b) At least 02 (two) members of the Committee shall be non-executive directors;
banks that
6 (2) (c) Members of the Committee shall be nominated and since
appointed by the Board; formation of
6 (2) (d) The Board shall have authority to remove and appoint any NRC is
member of the Committee; contradictory
6 (2) (e) In case of death, resignation, disqualification, or removal of with the Bank
any member of the Committee or in any other cases of Company Act,
1991; the
vacancies, the board shall fill the vacancy within 180 (one
scheduled
hundred eighty) days of occurring such vacancy in the Banks have no
Committee; scope to
6 (2) (f) The Chairperson of the Committee may appoint or co-opt comply with
any external expert and/or member(s) of staff to the the provisions
Committee as advisor who shall be non-voting member, if relating to NRC
the Chairperson feels that advice or suggestion from such of Corporate
external expert and/or member(s) of staff shall be required Governance
Code.)
or valuable for the Committee;
6 (2) (g) The company secretary shall act as the secretary of the
Committee;
6 (2) (h) The quorum of the NRC meeting shall not constitute
without attendance of at least an independent director;
6 (2) (i) No member of the NRC shall receive, either directly or
indirectly, any remuneration for any advisory or consultancy
role or otherwise, other than Director’s fees or honorarium
from the company.
6 (3) Chairperson of the NRC:
6 (3) (a) The Board shall select 1 (one) member of the NRC to be Chairperson
of the Committee, who shall be an independent director;

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Midland Bank PLC.
104 Annual Report 2023
6 (3) (b) In the absence of the Chairperson of the NRC, the remaining
members may elect one of themselves as Chairperson for
that particular meeting, the reason of absence of the regular
Chairperson shall be duly recorded in the minutes;
6 (3) (c) The Chairperson of the NRC shall attend the annual general
meeting (AGM) to answer the queries of the shareholders:
Provided that in absence of Chairperson of the NRC, any
other member from the NRC shall be selected to be present
in the annual general meeting (AGM) for answering the
shareholder’s queries and reason for absence of the
Chairperson of the NRC shall be recorded in the minutes of
the AGM.
6 (4) Meeting of the NRC:
6 (4) (a) The NRC shall conduct at least one meeting in a financial year;
6 (4) (b) The Chairperson of the NRC may convene any emergency
meeting upon request by any member of the NRC;
6 (4) (c) The quorum o f the meeting of the NRC shall be constituted
in presence of either two members or two third of the
members of the Committee, whichever is higher, where
presence of an independent director is must as required
under condition No. 6(2)(h);
6 (4) (d) (d) The proceedings of each meeting of the NRC shall duly
be recorded in the minutes and such minutes shall be
confirmed in the next meeting of the NRC.
6 (5) Role of the NRC:
6 (5) (a) NRC shall be independent and responsible or accountable
to the Boar d and to the shareholders;
6 (5) (b) NRC shall oversee, among others, the following matters and
make report with recommendation to the Board:
6 (5) (b) (i) Formulating the criteria for determining qualifications,
positive attributes and independence of a DO
director and recommend a policy to the Board, relating
to the remuneration of the directors, top level
executive, considering the following:
6 (5) (b) (i) (a) The level and composition of remuneration is reasonable
and sufficient to attract, retain and motivate suitable
directors to run the company successfully;
6 (5) (b) (i) (b) The relationship of remuneration to performance is clear
and meets appropriate performance benchmarks; and
6 (5) (b) (i) (c) Remuneration to directors, top level executive involves a
balance between fixed and incentive pay reflecting short
and long-term performance objectives appropriate to the
working of the company and its goals;
6 (5) (b) (ii) Devising a policy on Board’s diversity taking into
consideratio n age, gender, experience, ethnicity, educational
background and nationality;
6 (5) (b) (iii) Identifying persons who are qualified to become directors
and who may be appointed in top level executive position in
accordance with the criteria laid down, and recommend
their appointment and removal to the Board;
6 (5) (b) (iv) Formulating the criteria for evaluation of performance of
independent directors and the Board;
6 (5) (b) (v) Identifying the company’s needs for employees at different
levels and determine their selection, transfer or replacement
and promotion criteria; and
6 (5) (b) (vi) Developing, recommending and reviewing annually the
company’s human resources and training policies;
6 (5) (c) The company shall disclose the no mination and
remuneration policy and the evaluation criteria and activities
of NRC during the year at a glance in its annual report.

Corporate Governance Compliance Status

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105 Annual Report 2023
7 External or Statutory Auditors :
7 (1) The issuer company shall not engage its external or statutory auditors to per form the following
services of the company, namely:
7 (1) (i) Appraisal or valuation services or fairness opinions;
7 (1) (ii) Financial information systems design and implementation;
7 (1) (iii) Book-keeping or other services related to the accounting
records or financial statements;
7 (1) (iv) Broker-dealer services;
7 (1) (v) Actuarial services;
7 (1) (vi) Internal audit services or special audit services;
7 (1) (vii) Any service that the Audit Committee determines;
7 (1) (viii) Audit or certification services on compliance of corporate
governance as required under condition No. 9(1); and
7 (1) (ix) Any other service that creates conflict of interest.
7 (2) No partner or employees of the external audi t firms shall
possess any share of the company they audit at least during
the tenure of their audit assignment of that company; his or
her family members also shall not hold any shares in the said
company:

Provided that spouse, son, daughter, father, mother, brother,

sister, son-in-law and daughter -in-law shall be considered as
family members.
7 (3) Representative of external or statutory auditors shall remain
present in the Shareholders’ Meeting (Annual General
Meeting or Extraordinary General Meeting) to answer the
queries of the shareholders.
8 Maintaining a website by the Company:
8 (1) The company shall have an official website linked with the
website of the stock exchange.
8 (2) The company shall keep the website functional from the Website is already
date of listing. functional
8 (3) The company shall make available the detailed disclosures
on its website as required under the listing regulations of the
concerned stock exchange(s).
9 Reporting and Compliance of Corporate Governance:
9 (1) The company shall obtain a certificate from a practicing
Professional Accountant or Secretary (Chartered
Accountant or Cost and Management Accountant or
Chartered Secretary) other than its statutory auditors or
audit firm on yearly basis regarding compliance of
conditions of Corporate Governance Code of the
Commission and shall such certificate shall be d isclosed in
the Annual Report.
Explanation: “Chartered Accountant” means Chartered
Accountant as defined in the Bangladesh Chartered
Accountants Order, 1973 (President’s Order No. 2 of 1973);
“Cost and Management Accountant” means Cost and
Management Accountant as defined in the Cost and
Management Accountants Ordinance, 1977 (Ordinance No.
LIII of 1977); “Chartered Secretary” means Chartered
Secretary as defined in the PvUvW© ‡m‡µUvixR AvBb, 2010
(2010 m‡bi 25bs AvBb) (Chartered Secretaries Act, 2010).
9 (2) The professional who will provide the certificate on
compliance of this Corporate Governance Code shall be
appointed by the shareholders in the annual general
meeting.
9 (3) The directors of the company shall state, in accordance with
the Annexure -C attached, in the directors’ report whether
the company has complied with these conditions or not.

Corporate Governance Compliance Status

Midland Bank PLC.
106 Annual Report 2023
Meeting of the Directors of Midland Bank PLC.
Sl. Directors Designation No. of No. of % of
Meeting Attendance Attendance
1. Mrs. Nilufer Zafarullah Chairman 16 15 93.75 %
2. Md. Shamsuzzaman Vice Chairman 16 08 50.00 %
3. Mr. Master Abul Kashem Director 16 16 100 .00 %
4. Mr. Kazi Omar Zafar Director 16 11 68.75 %
5. Mr. Ahsan Khan Chowdhury Director 16 08 50.00 %
6. Mr. Md. Wahid Miah Director 16 08 50.00 %
7. Mr. Rezaul Karim Director 16 12 75.00 %
8. Mr. A.K.M. Badiul Alam Director 16 13 81.25 %
9. Mr. Md. Kamal Hossain Director 16 14 87.50 %
10. Mrs. Shahnaj Parveen Director 16 15 93.75 %
11. Mr. Hafizur Rahman Sarker Director 16 06 37.50 %
12. Mr. Kazi Raihan Zafar Director 16 12 75.00 %
13. Ms. Anushka Mehreen Zafar (Resigned from the Board 13 11 84.62 %
of Directors in its 145th
meeting held on
27.09.2023)
14. Mr. Abdul Momin Mondol Director 16 04 25.00 %
15. Dr. Mostafizur Rahman Director 16 13 81.25 %
16. Mr. Abdullah Ahmed Yousuf Director 12 08 66.67%
(Appointed as director vide
BB later BRPD(R-2)651/
9(57)DL/2022-11692 dated
20.11.2022)
17. Mr. Mahbubul Hady Fazle Rab Independent Director 16 07 43.75 %
18. Mr. Nazimuddin Chowdhury Independent Director 16 15 93.75 %
19. Mr. Khandaker Tanveer Shamsul Islam Independent Director 16 12 75.00 %
20. Mr. Mohammad Asif Uz-Zaman Independent Director 16 13 81.25 %

The position of shareholders as on December 31, 2023 was as follows:

Number of Number of % of Share

Particulars
Investors Shares Holdings
Sponsors and Directors 32 502,970,438 78.63%
Financial Institution 245 33,387,076 5.22%
General Public 5,400 103,312,,239 16.15%
Total 5,677 639,669,753 100.00%

The classification of shareholders by shareholding as on December 31, 2023 was as follows:

Number of Number of % of Share

Particulars
Investors Shares Holdings
1 to 500 1,269 251,701 0.04%
501 to 5000 3,437 5,071,450 0.79%
5001 to 10000 310 2,474,047 0.39%
10001 to 20000 226 3,525,147 0.55%
20001 to 30000 89 2,268,770 0.35%
30001 to 40000 49 1,756,023 0.27%
40001 to 50000 54 2,622,271 0.41%
50001 to 100000 92 7,031,264 1.10%
100001 to 1000000 106 32,827,385 5.13%
Above 1000000 45 581,841,695 90.96%
Total 5,677 639,669,753 100.00%

Meeting of the Directors

Midland Bank PLC.
107 Annual Report 2023
Pattern of Shareholding
The pattern of shareholding of Midland Bank PLC. as on 31 December 2023 furnished below:
a) Shareholding by Parent/Subsidiary/Associated Companies and other related parties: Nil
b) Shares held by Directors, Chief Executive Officer, Company Secretary, Chief Financial Officer, Head of Internal Audit and their
Spouses and Minor Children are as follows:

Status as of 31st December, 2023:

(i) Shares held by Directors and their Spouses
No. of
Sl. Directors Status No. of Shares Name of Spouse Shares
1 Mrs. Nilufer Zafarullah Chairman 1,27,93,396 Mr. Kazi Zafarullah 15,20,867
2 Mr. Md. Shamsuzzaman Vice Chairman 2,99,07,662 Mrs. Ferdous Ara NIL
Nominee Director of
Liberty Knitwear Ltd.
3 Mr. Master Abul Kashem Director 2,63,73,600 Mrs. Nigar Sultana Daizy NIL

Mrs. Anastasia NIL

4 Mr. Kazi Omar Zafar Director 1,27,93,396
Gkouni Kazi Zafar
5 Mrs. Seema NIL
Mr. Ahsan Khan Chowdhury Director 2,84,83,488
Chowdhury
Mrs. Suborna NIL
6 Mr. Md. Wahid Miah Director 2,84,83,488
Mostafa
7 Mr. Rezaul Karim Nominee Director of 2,84,83,488 Mrs. Shirin Akhter NIL
Reedisha Knitex Ltd.
8 Mr. A.K.M. Badiul Alam Director 19,208,277 Mrs. Shahida Alam 1,000,000
Nominee of Garment
Export Village Ltd.
9 Mr. Md. Kamal Hossain Nominee Director of 2,84,83,488 Mrs. Ashneel Chowdhury NIL
Explore Garments Limited
10 Mrs. Shahnaj Parveen Nominee Director of 2,84,83,488 Mr. Md. Belal Hossain NIL
Next Collections Limited
11 Mr. Abdul Momin Mondol M.P. Nominee Director of 2,84,83,488 Mrs. Zannatul Ferdos NIL
Mondol Fabrics Ltd.
12 Mr. Hafizur Rahman Sarker Nominee Director of 2,70,59,313 Mrs. Luna Sarker NIL
Beq Knit Ltd.
13 Dr. Mostafizur Rahman Nominee Director of 2,84,83,488 Late Mrs. Tohurun Nessa NIL
Popular Pharmaceu�cals Ltd.
14 Mr. Kazi Raihan Zafar Director 1,27,93,396 Mrs. Tregubenkova NIL
15 Mr. Abdullah Ahmed Yousuf Director 3,13,31,837 Ms . Sabiha Mahboob 14,24,174
16 Mr. Mahbubul Hady Fazle Rab Independent Director NIL Mrs. Sabiha Rab NIL
17 Mr. Nazim Uddin Chowdhury Independent Director NIL Mrs. Amina Khanam NIL
Mr. Khandhaker Tanveer NIL Mrs. Maliha Islam NIL
18 Shamsul Islam Independent Director

19 Mr. Mohammad Asif -uz -Zaman Independent Director NIL Mrs. Sharmin Rahman NIL

((ii) Shares held by:

Chief Executive Officer : Nil
Company Secretary : Nil
Chief Financial Officer : Nil
Head of Internal Audit : Nil
Spouses of above Executives : Nil
c) Shareholding by other Executives and Spouse : Nil
d) Shareholders holding ten percent (10%) or more voting interest in the company: Nil

Pattern of Shareholding
Midland Bank PLC.
108 Annual Report 2023
Message from the CRO
hereunder to stipulate some conceptual outlines for having better
perception as deemed necessary to establish good risk
management practices within the institution.

Risk Governance
Midland Bank possesses a strong risk governance framework
steered by the Board of Directors. In 2023, BRMC closely
supervised the Bank’s risk management activities and ensured
rapid response to emerging risk issues. To ensure comprehensive
risk assessment, BRMC reviews the progress in management of
NPL, portfolio concentration, recovery through legal settlement,
capital, liquidity, sustainable finance, etc.

At management level, the Executive Risk Management Committee

(ERMC) hosts the converging platform for enterprise-wide risk
functions and guides and monitors risk management activities at a
granular level and with higher frequency. The Risk Management
team, under the Risk Management Division, diligently supports the
risk governance and management platforms through collaboration
with all stakeholders in implementing the risk agendas. Internal
2023 presented challenges across the globe, with sustained high Control and Compliance (ICC) is an essential partner in our risk
inflation levels from 2022, putting continuous pressure on the infrastructure. The ICC team actively monitors compliance across
central bank to dampen rising prices through increases of interest key risk areas, such as credit, asset-liability, foreign exchange,
rates. The global economy has been adversely affected by the money laundering, IT and environment & social risks.
Russian-Ukraine war, causing a major supply chain disruption in
business and economic activities. Banking sector is not an isolated We rigorously monitored our actual risk exposures against set
landscape and got affected, both locally and globally. High energy appetite. We are constantly reviewing and updating our risk
prices, rising interest rates, continuous inflation, disruption in food policies and frameworks to address new developments in the risk
production, etc. are some common features that impacted environment. We set our policies with more strict risk criteria than
economies all over the risk management of the banking sector. suggested by regulatory guidelines to ensure stringent regulatory
compliance.
Banking sector of Bangladesh has been trying to address new risk
aspects along with conventional ones in line with existing as well as In 2023, we developed the Bank’s Recovery Plan through a
new regulatory guidelines. In this backdrop, it can be mentioned risk-based assessment of the organization’s ability to recover from
that Midland Bank PLC., accommodated these challenges a stressed situation. The objective was to ensure the Bank’s
relatively successfully in 2023 and achieved enviable success by viability even in severe stress events, without any supervisory or
adopting dynamic strategy. government support. It includes methodology of identifying risks
and action plans to bring back the Bank’s financial and operational
Since the beginning of my journey as the Chief Risk Officer (CRO), strength amid risk events.
I have been driven with a focus on risk-calibrated profitable growth.
The bank prudently manages different risks by maintaining a Functionally and hierarchically independent from
strong risk management culture. This was enabled by introduction business and other operation functions.
of the centralized Credit Administration Department (CAD) which
reduced the risk of documentation errors, standardized the The Risk Management Division (RMD) closely monitor the existing
process and thus reducing the associated risks. and emerging risk factors for on time identification, assessment as
well as mitigation of the risk on six core risk areas.
Midland Bank’s reputation and the achievement of its corporate
goals depend upon the ability to identify, assess and manage risks Risk Management Process
in all respects. Midland Bank’s risk management strategy is thus
fundamentally anchored on maintaining adequate capital, liquidity
and operational control at all times in order to safeguard the Risk Appetite Statement
interest of depositors, borrowers, shareholders and other
Monitor and Review

stakeholders. Indeed, the Bank’s risk management practice is Risk Policies and Limits
Reporting

integrated with its long term viability and sustainability.

Risk Identification and Measurement
We, in our bank, follow well-articulated process flow chart/
Standard Operational Procedure (SOP) to ensure proper Stress Testing
identification and undertake befitting measures for risk mitigation
on different frontiers of our operation. We have endeavored Risk Treatment/Mitigation

Message from the CRO

Midland Bank PLC.
109 Annual Report 2023
Risk Appetite Statement
MDB’s risk appetite statement defines the amount of risk we intend to assume in pursuit of our strategic and financial objectives. Our
guiding principle is to ensure sound risk management practices, supported by strong capital and funding position, as we pursue our
client-focused strategy. In defining our risk appetite, we take into consideration our vision, values, and strategy, along with our risk capacity.
Our cardinal objectives to follow good risk management principles are as under:
o Safeguarding our reputation and brand;
o Engaging in client-oriented businesses that we understand;
o Maintaining a balance between risk and returns;
o Meeting regulatory expectations and/or identifying and having plans in place to address any issues in a timely manner;

MDB’s risk appetite statement is reviewed annually in alignment with our strategic, financial and capital planning cycle to ensure risk and
return trade-off in the right perspective. To help MDB stays within its risk appetite, the Board, RMC, and Senior Management regularly
receive and review reporting on our risk profile against the risk appetite limits.

All strategic business decisions, as well as day-to-day business decisions, are governed by our risk appetite framework. Strategic decisions
are evaluated through a due diligence process to ensure that the risk exposure is within our risk appetite; these decisions require approval
from the Board before implementation. Day-to-day activities and decisions are governed by our framework of risk tolerance limits, policies,
standards and procedures that support our risk appetite statement.

Risk Policies and Limits

Our risk policies and limits framework is intended to ensure that risks are appropriately identified, measured, monitored and controlled in
accordance with our risk appetite. For most risks, we have developed an overarching framework document that sets out the key principles
for managing the associated risks and our key risk policies and limits. This framework is supported by standards, guidelines, processes,
procedures and controls that govern day-to-day activities in our businesses. Oversight is provided by Management Committees, as well as
the Board/Board Committees.

Risk Identification and Measurement

Risk identification and measurement are important elements of our risk management framework. Risk identification is a continuous
process, generally achieved through:
o Regular assessment of risks associated with lending and trading credit exposures;
o Ongoing monitoring of trading and non-trading portfolios;
o Assessment of risks in new business activities and processes;
o Assessment of risks in complex and unusual business transactions; and
o Regular monitoring of the overall risk profile considering market developments and trends, and external and internal events.

Risk Identification Processes

Strategic and Emeging Risk Themes Macro and Assessment of Risks Inherent Strategic Business Reviews
External and Peer Benchmarking Risk Level in MDB’s Material Risk Assessment Process
Regulatory Reviews External Risks Businesses Risk and Control Self Assessments
(Probability/
severity
considerations)

Risk Register

Internal Capital
Adequacy
Assessment
Process
(ICAAP)

Message from the CRO

Midland Bank PLC.
110 Annual Report 2023
The decision to track a new risk is based on a risk assessment through our risk identification processes and includes criteria such as
materiality, measurability and probability. Furthermore, the decision to hold capital for a new risk is also based on whether the risk is being
mitigated, and whether capital is deemed to be a suitable mitigate.

Risk is usually measured in terms of expected loss, unexpected loss, and economic capital.

Expected loss
Expected loss represents the loss that is statistically expected to occur in the normal course of business in a given period of time.

Unexpected Loss and Economic Capital

Unexpected loss is the statistical estimate of the amount by which actual losses might exceed expected losses over a specified time
horizon, computed at a given confidence level. We use economic capital to estimate the level of capital needed to protect us against
unexpected losses. Economic capital allows us to assess performance on a risk-adjusted basis.

We also use techniques such as sensitivity analysis and stress testing to ensure that the risks remain within our risk appetite and that our
capital is adequate to cover those risks. Our stress testing program includes evaluation of the potential effects of various economic and
market scenarios on our risk profile, earnings and capital.

Risk Management Approach of the Bank

The Bank has to identify and manage risks holistically as well as strengthening the Bank’s capabilities to understand, articulate and control
the nature and level of the risks the Bank management takes while serving its clients.

In order to mitigate the risks more smoothly, the Bank will consider whether any of the other existing or emerging risks should be treated
as material risks over time. The table provides as overview of the Bank’s core risks and risk management process.

Type of core risk Mitigating process

Credit Risk The Bank has a robust credit risk policy framework embedded with prudent credit risk
management guidelines to minimize credit defaulters and manages its credit exposures by
diversifying products, geographical area, client segments and industry sectors.
Asset and Liability Risk The Asset Liability Committee (ALCO) of the Bank has analyzed the market liquidity and loans
& advances. ALCO also reviews and offers deposit interest rate with attractive deposit
products of Bank in line with industry and holds an adequate buffer of High Quality Liquidity
Asset (HQLA) to survive extreme but plausible liquidity stress scenarios for at least 30 days
without recourse to extraordinary central bank support.
Foreign Exchange Risk The Bank maintains its foreign exchange holdings as per the need faced by the clients and
manages Foreign Exchange Risk within the approved Risk Appetite. The Bank is also
conscious of managing FX positions so that any FX losses don’t cause material damage to its
regular FX operation.
Internal Control and Compliance Risk The Bank has effective guidelines to maintain strong internal control systems through which
regular and special inspections are conducted by the team of audit division and reports
accordingly to the Senior Management of the Bank.
Money Laundering Risk The Bank has formulated “Guidelines on Prevention of Money Laundering and Terrorist
Financing” and applies, measures and monitors risk-based Customer Due Diligence (CDD),
business relationship and transaction pursuant to national regulations and international
standards.
ICT Risk The Bank continuously enriches its technology risk management capabilities by adopting a
strong “Information & Communication Technology (ICT) Security policy” and reviews its
system fluctuations and penetration testing. A dedicated IT audit team carries out its
functions to ensure findings which are addressed to a higher authority.

Operational Risk
Operational risk is the risk of loss resulting from people, inadequate or failed internal processes and systems, or from external events.

As part of the normal course of business, MDB is exposed to operational risks in its business activities and external environment. Our
comprehensive Operational Risk Management Framework, supported by policies, tools, systems and governance structure, is used to
mitigate operational risks. We continuously monitor our operational risk profile to ensure, we are operating within MDB’s approved risk
appetite.

Message from the CRO

Midland Bank PLC.
111 Annual Report 2023
 1. Operational risk is managed through the three lines of mitigation strategies. In addition, we benchmark against best
defense model. Front line businesses form our first line of practices and provide regular updates to the Senior Management.
defense. Their primary responsibility is the day-to-day
management of operational risk inherent in their products Since there has been a significant upscaling of the technological
and activities. infrastructure of MDB, cyber security threat has been a key
2. The second line of defense includes Risk Management and consideration in the Enterprise Risk Management Framework of
other oversight functions, which are responsible for the Bank. The Bank operates a comprehensive information system
monitoring and providing independent oversight of security and cyber protection program to protect the information
operational risk matters in their respective risk types and for and information systems that support its operations and assets.
providing effective challenges to business lines’ operational The IT Division provide a custody to sensitive information and
risk assessments and mitigation activities. control mechanisms of the Bank including:
3. Internal Audit, our third line of defense, assesses and
provides an independent opinion on the design and  Policies, standards and controls that meet or exceed
operating effectiveness of MDB’s management of requirements established by BB ICT Security Guideline, BB
operational risk and the strength of the internal control Cloud Guideline, ISO 27001 Standard, PCI-DSS, and SWIFT
environment. Security.

Capital Resilience  24/7/365 cyber defense operations, Security Operation

Midland Bank understands the critical role that capital plays as a Center (SOC), incident response and technologies.
shock absorption cushion for rainy days and in supporting growth
and we will continue to build capital strength through profit  Robust and comprehensive vulnerability assessment &
retention, stock dividend and additional provisioning. We rigorously penetration testing activities.
conduct stress tests on our capital resilience under different
scenarios, including severe economic downturns. The Bank has  Information Security awareness and privacy training.
consistently maintained Basel requirement for capital adequacy,
with CRAR growing to 17.28% in 2023 (solo-basis) against the Risk Roadmap
regulatory requirement of 12.5%. The ongoing economic challenges are expected to continue in
2024. Conscious growth with strong vigilance on clients and
Environmental Risk proactive assessment of our risk environment will continue to be
Environmental risk is the risk of financial loss or damage to our core attitude. We aim to further enhance our responsiveness to
reputation associated with environmental issues, whether arising shifts in the market through re-adjusting our underwriting
from our credit and investment activities or related to our own considerations and balancing our exposures. We will continue our
operations. Our green banking and environmental policy, commits emphasis on risk-weighted efficient exposures to facilitate capital
MDB to responsible conduct in all activities to protect and optimization.
conserve the environment; safeguard the interests of all
stakeholders from unacceptable levels of environmental risk; and Midland Bank from its very inception emphasizes on building of
support the principles of sustainable development. good risk management culture along with the effort to up
gradation of its standard in phases within the organization in
Technology, Information and Cyber Security Risk conformity with broader policy guidelines prescribed by
Financial institutions like MDB are evolving their business Bangladesh Bank in a congruence with institutional policy
processes to leverage innovative technologies and the internet to prescriptions/strategies approved by the Board. We firmly believe
improve client experience and streamline operations. At the same that compliance factors bear immense importance towards the
time, cyber threats and the associated financial, reputation and safeguarding the interest of the institution as a financial
business interruption risks have also increased. intermediary. We don’t want to be risk averse but at the same time
our risk taking approach should be based on sound footing where
These risks continue to be actively managed by us through exercising of due diligence with objectivity will get pre-emption
strategic risk reviews, enterprise-wide technology and information over any other subjective considerations. We are relentless in our
security programs, with the goal of maintaining overall cyber effort to ensure sustainable growth of our Bank thereby making it
resilience that prevents, detects and responds to threats such as one of the most preferred and resilient financial institutions with
data breaches, malware, unauthorized access and firm commitment to contribute to the cause of betterment
denial-of-service attacks. socio-economic condition of the country distinctively.

Given the importance of electronic financial systems, including

secure online banking provided by MDB to its clients, MDB
continues to develop controls and processes to protect our
systems and client information from damage and unauthorized
disclosure. MDB monitors the changing environment globally, Md. Zahid Hossain
including cyber threats, evolving regulatory requirements, and Deputy Managing Director & CRO

Message from the CRO

Midland Bank PLC.
112 Annual Report 2023
 Market Discipline
Disclosures on Risk Based Capital (Basel-III)

01. Introduction
Use of excessive leverage, gradual erosion of level and quality of capital base, insufficient liquidity buffer, pro-cyclicality and
excessive interconnectedness among systematically important institutions are identified as reasons of recent bank failures. Bank
for International Settlements (BIS) came up, in response, with new set of capital and liquidity standards in the name of Basel III.
Incompliance with the ‘Revised Guidelines on Risk Based Capital Adequacy (RBCA)’ issued by Bangladesh Bank in December
2014, Banks in Bangladesh have formally entered into Basel III regime from 1 January 2015. The new capital and liquidity standards
have greater business implications for banks.

Midland Bank PLC. (MDB) has also adopted Basel III framework as part of its capital management strategy in line with the revised
guideline. These Market discipline disclosures under Basel III are made following ‘Guidelines on Risk Based Capital Adequacy
(Revised Regulatory Capital Framework for banks in line with Basel III)’ for banks issued by Bangladesh Bank in December
2014.The purpose of Market discipline is to complement the minimum capital requirements and the supervisory review process.
Establishing a transparent and disciplined financial market through providing accurate and timely information related to liquidity,
solvency, performance and risk profile of a bank is another important objective of this disclosure

02. Disclosure Policy

Bank calculates Risk Weighted Assets (RWA) under the following approaches as per Basel III guidelines (BRPD circular no. 18,
dated December 21, 2014):
a) Standardized approach for credit risk,
b) Standardized approach for market risk and,
c) Basic Indicator approach for operational risk.

03. Board Overview

As strategic advisors to management, Board of Directors continued to prudently balance growth opportunities–with risk discipline
and shareholder value creation. Board along with the senior management team work together to build momentum for our Bank’s
transformation by focusing on three integrated bank-wide priorities: client focus, innovation and simplify action.

Board of Directors recognizes the progress made over the past year across these priorities, including building stronger and
deeper relationships with clients, as the team strives toward our goal of being #1 in client experience. Progress has also been
made on the innovation and simplification front, as we delivered new technologies that improved the banking experience for
clients and simplified processes making it easier to do business with us.

At MDB, Board of Directors are committed to delivering sustainable earnings growth to shareholders. They have embarked on
initiatives to free up resources that will allow the Bank to reinvest in business to accelerate revenue growth and reduce structural
cost base. They will do so with a keen focus on industry-leading fundamentals in capital, expenses and risk management.

Basel-III
Midland Bank PLC.
113 Annual Report 2023
04. Scope of Application
Qualitative a) The name of the top corporate
disclosure entity in the group to which this Midland Bank PLC.
guidelines applies.

b) An outline of differences in the Midland Bank Limited has no subsidiary as of December 31, 2023.
basis of consolidation for
A brief description of the Bank and its subsidiaries are given below:
accounting and regulatory
purposes, with a brief
Midland Bank PLC. (MDB):
description of the entities
within the group (a) that are Midland Bank PLC. ("the Bank") was incorporated on March 20, 2013 as a
fully consolidated; (b) that are Public Limited Company in Bangladesh under Companies Act, 1994 with the
given a deduction treatment; registered office at N.B. Tower (Level 6 to 9), 40/7 North Avenue, Gulshan 2,
and (c) that are neither and Dhaka-1212. The Company was also issued Certificate of Commencement
consolidated nor deducted (e.g. of Business on the same day. It started commercial banking operation on June
where the investment is risk- 20, 2013 through opening first branch at Dilkusha Commercial Area in the
weighted). name ‘Dilkusha Corporate Branch.’ Presently, the number of branches stood at
39 (thirty nine ) including 20 rural branches, 19 Sub branches along with 127
agent banking booth covering commercially important locations of the country

The principal activities of the Midland Bank PLC. (MDB) are to provide all
types of commercial banking services to customers through its branches,
Corporate units and SME Center in Bangladesh. The Bank also entitled to
provides money market operations, investment in merchant banking activities,
financial intermediary services and any related financial services

c) Any restrictions, or other major

impediments, on transfer of Not Applicable
funds or regulatory capital
within the group.

Quantitative d) The aggregate amount of

disclosure capital deficiencies in all Not Applicable
subsidiaries not included in the
consolidation that are
deducted and the name(s) of
such subsidiaries.

05. Capital Structure

Qualitative a) Summary information on the As per Basel III guidelines, regulatory capital consists of Tier-1
disclosure terms and conditions of the main (Common Equity Tier 1 and Additional Tier 1) and Tier 2 capital.
features of all capital instruments, Tier 1 Capital is known as going concern capital and Tier 2 Capital also known
especially in the case of capital as gone concern capital.
instruments eligible for inclusion
in CET-1, Additional Tier -1 or Tier-2
Common Equity Tier-1 (CET 1) capital of MDB consists of (i) Fully Paid-up
Capital, (ii) Statutory Reserve and (iii) Retained Earnings.

Tier-2 Capital of MDB consists of (i) General Provision against unclassified

Loans and Off-balance sheet exposures.

Basel-III
Midland Bank PLC.
114 Annual Report 2023
 in BDT Million
Quantitative b) The amount of Tier-1 capital with separate disclosure of: Solo
disclosure Common Equity Tier-1 (CET-1) Capital:
I. Fully Paid up capital 6,396.70
II. Non repayable share premium account
III. Statutory reserve 1,881.77
IV. General reserve
V. Retained earnings 868.86
VI. Minority interest in subsidiaries
VII. Dividend equalization account
Total Common Equity Tier-1 (CET-1) Capital 9,147.32
Additional Tier 1 Capital 0.00
Total Tier 1 Capital (A) 9,147.32
Total Tier 2 capital (B) 599.36
c) Regulatory adjustments/Deduction from capital (C) 568.33
d) Total eligible capital (A+B-C) 9,178.36

06. Capital Adequacy

Qualitative A summary discussion of The Bank has adopted Standardized Approach (SA) for computation of capital
disclosure a) the Bank’s approach to charge for credit risk and market risk, and Basic Indicator Approach (BIA) for
assessing the adequacy of operational risk. Assessment of capital adequacy is carried out in conjunction with
its capital to support the capital adequacy reporting to the Bangladesh Bank
current and future The Bank has maintained capital adequacy ratio on the basis of “Solo” is 17.28 %
activities. against the minimum regulatory requirement of 12.50% including conservation
buffer 2.50%. Tier-I capital adequacy ratio for “Solo” is 16.15% as against the
minimum regulatory requirement of 8.50% including conservation buffer 2.50%.
MDB has been generating most of its incremental capital from retained profit (stock
dividend and statutory reserve transfer etc.). Besides meeting regulatory capital
requirement, the Bank maintains adequate capital to absorb material risks foreseen.
The surplus capital maintained by MDB will act as buffer to absorb all material risks
and to support the future activities. To ensure the adequacy of capital to support
the future activities, the bank assesses capital requirements periodically considering
future business growth. The Bank’s policy is to manage and maintain its capital with
the objective of maintaining strong capital ratio and high rating. The Bank maintains
capital levels that are sufficient to absorb all material risks. The Bank also ensures
that the capital levels comply with regulatory requirements and satisfy the external
rating agencies and other stakeholders including depositors. The whole objectives
of the capital management process in the Bank are to ensure that the Bank remains
adequately capitalized at all times.
in BDT Million
Quantitative Particulars Solo
disclosure b) Capital requirement for credit risk 4,381.89
c) Capital requirement for market risk 371.52
d) Capital requirement for operational risk 558.85
Minimum capital requirement (10% of RWA or BDT 500 crore, whichever is higher) 5,312.27
Total regulatory capital 9,178.36
Total Risk Weighted Assets (RWA) 53,122.65
e) Total capital, CET 1 capital, Total Tier 1 capital and Tier 2
capital to risk weighted asset ratio:
• For the consolidated group
• For standalone:
Total Capital to Risk Weighted Asset Ratio (CRAR) 17.28%
Common Equity Tier-1 (CET-1) Capital Ratio 16.15%
Total Tier 1 Capital Ratio 16.15%
Tier-2 Capital Ratio 1.13%
f) Capital Conservation Buffer 7.28%
g) Available Capital under Pillar II requirement 3,866.09

Basel-III
Midland Bank PLC.
115 Annual Report 2023
07. Credit Risk

Qualitative a) The general qualitative disclosure requirement with respect to credit risk, including:
disclosure
i) Definitions of past due With a view to strengthening credit discipline and bring classification and
and impaired (for provisioning regulation in line with international standard, a phase wise program for
accounting purposes); classification and provisioning was undertaken by the Bank as per Bangladesh Bank
circulars issued from time to time. In this regard, all the loans and advances are
grouped into four categories for the purpose of classification, namely (i) Continuous
Loan, (ii) Demand Loan, (iii) Fixed Term Loan and (iv) Short-term Agricultural and
Micro Credit. They are classified as follow:

A Continuous Loan, Demand Loan, Fixed Term Loan or any installment(s)/part of

installment(s) of a Fixed Term Loan which will remain past due/overdue for a period
of 03 (three) months or beyond but less than 09 (nine) months, the entire loan will
be put into the "Sub-standard (SS)".

A Continuous Loan, Demand Loan, Fixed Term Loan or any installment(s)/part of

installment(s) of a Fixed Term Loan which will remain past due/overdue for a period
of 09 (nine) months or beyond but less than 12 (twelve) months, the entire loan will
be put into the "Doubtful (DF)".

A Continuous loan, Demand loan, Fixed Term Loan or any installment(s)/part of

installment(s) of a Fixed Term Loan which will remain past due/overdue for a period
of 12 (twelve) months or beyond,
the entire loan will be put into the "Bad/Loss (B/L)"

Loans have to be treated as defaulted loan as per section 5(GaGa) of the Banking
Companies Act, 1991 and to be reported accordingly as per formats given in BRPD
Circular No.08 dated August 02, 2015. In this regard, a portion of the "Sub-standard
(SS)" loans will be reported as defaulted loan.

In case of any installment(s) or part of installment(s) of a Fixed Term Loan is not

repaid within the fixed expiry date, the amount of unpaid installment(s) will be
treated as past due/overdue after six months of the expiry date.

Short-term Agricultural and Micro Credit will be considered irregular if it is not

repaid within the due date as stipulated in the loans agreement are classified
as under:
 Sub-standard- if the irregular status continues after a period of 12
(twelve) months, the credits are classified as “Sub-standard”.

 Doubtful- if the irregular status continue after a period of 36 (thirty six)

months, the credits are classified as “Doubtful”.

 Bad/Loss- if the irregular status continue after a period of 60 (sixty)

months, the credits are classified as “Bad/Loss”.
A Continuous loan, Demand loan or a Term Loan which remained overdue for a
period of 02 (two) months or more, are treated as “Special Mention Account
(SMA)”.

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 ii) Description of The Bank is required to maintain the following general and specific provision in
approaches followed for respect of classified and unclassified loans and advances on the basis of Bangladesh
specific and general Bank guidelines issued from time to time :
all owances and statistical
methods. Particulars Rate
On unclassified small enterprise financing (SME) 0.25%
On unclassified general loans and advances including housing
1%
finance
On interest receivable on loans 1%
On off -balance sheet exposures 1%
On unclassified loans for professionals to set-up business and
2%
loans to share business
On unclassified consumer financing other than housing
5%
finance, loan for professionals and loans for BGs/MBs/SDs
On unclassified Short Term Agricultural and Micro Credits 2.50%
On Special Mention Account (SMA) except Short Term
0.25% to 5%
Agricultural and Micro Credits
Specific provision:
On substandard loans and advances (SS) other than Short
20%
Term Agricultural and Micro Credits
On doubtful loans and advances (DF) other than Short Term
50%
Agricultural and Micro Credits
On bad / loss loans and advances (BL) 100%
On substandard loans and advances (SS) other than Short
20%
Term Agricultural and Micro Credits
On doubtful loans and advances (DF) other than Short Term
50%
Agricultural and Micro Credits
On doubtful short term Agricultural and Micro Credits
5%

Quantitative b) Total gross credit risk Total gross credit risk exposures broken down by major types of credit exposure of
disclosure exposures broken down by the Bank:
major types of credit Particulars In BDT
exposure. Million
Term Loan 21,544.99
Overdraft 8,678.63
Time Loan 11,742.36
Cash Credit 1,992.95
Loan Against Trust Receipts (LTR) 2,630.15
Consumer Loan 1,478.10
Payment Against Documents (PAD) 0.05
Agricultural Credit 802.47
EDF Loan 2,266.63
Packing Credit 44.98
Staff Loan 107.95
Other Loans & Advances 89.84
Bill purchased (Payable in Bangladesh) 96.33
Bill purchased (Payable outside Bangladesh) 3,387.23
Total 54,862.66
c) Geographical distribution Geographical distribution of exposures, broken down in significant areas by major
of exposures, broken down types of credit exposure of the Bank :
in significant areas by Particulars In BDT
major types of credit Million
exposure. Urban:
Dhaka Zone 46,475.52
Chittagong Zone 6,828.79

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 Rajshahi Zone 222.47
Khulna Zone 78.93
Mymensingh -
Barisal Division 2.63
Rangpur Division 33.60
Syl het Division 16.25
Sub-Total 53,658.19
Rural:
Dhaka Zone 815.46
Chittagong Zone 116.99
Rajshahi Zone 132.03
Khulna Zone 19.42
Mymensingh 109.78
Barisal Division -
Rangpur Division 10.79
Sylhet Division -
Sub-Total 1,204.47
Grand Total (Urban + Rural) 54,862.66
d) Industry or counterparty Industry or counterparty type distribution of expos ures, broken down by major
type distribution of types of credit exposure of the Bank :
exposures, broken down
by major types of credit Particulars In BDT Million
exposure. A. AGRICULTURE, FISHING, AND FORESTRY 782.47
B. TRADE & COMMERCE 7,935.47
RETAIL TRADING 380.41
WHOLESALE TRADING 4,292.48
EXPORT FINANCING -
IMPORT FINANCING 1,083.19
LEASE FINANCE -
OTHERS 2,179.19
C. CONSTRUCTION (COMMERCIAL REAL 2,677.83
ESTATE, CONSTRUCTION AND LAND
DEVELOPMENT LOANS):
RESIDENTIAL REAL ESTATE 312.24
COMMERCIAL REAL ESTATE 23.41
INFRASTRUCTURE DEVELOPMENT 76.95
OTHERS 2,265.23
D. TRANSPORT -
E. CONSUMER FINANCING 1,964.47
LOANS FOR THE PURCHASE OF FLATS
OR OTHER SINGLE-FAMILY 543.14
DWELLINGS
LOANS FOR THE PURCHASE OF
105.86
MOTORIZED PERSONAL TRANSPORT
LOANS FOR THE PURCHASE OF
319.96
DURABLE CONSUMPTION GOODS
CREDIT CARD LOANS 234.13
OTHER PERSONAL LOANS 761.38
F. LOANS TO FINANCIAL INSTITUTIONS 5,523.65
G. INDUSTRY 30,677.17
RMG 3,923.75
TEXTILE 4,607.57
FOOD AND ALLIED INDUSTRIES 2,358.90
PHARMACEUTICAL INDUSTRIES 1,129.66
CHEMICAL, FERTILIZER, ETC. 1,113.44
CEMENT AND CERAMIC INDUSTRIES 829.28

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 SHIP BUILDING INDUSTRIES -
SHIP BREAKING INDUSTRIES -
POWER AND GAS 1,195.28
OTHER MANUFACTURING OR 8,319.02
EXTRACTIVE INDUSTRIES
SERVICE INDUSTRIES 4,489.39

OTHERS 2,710.89
Miscellaneous 5,301.60
Grand total 54,862.66

e) Residual contractual Residual contractual maturity break down of the whole portfolios, broken down by
maturity breakdown of the major types of credit exposure of the Bank :
whole portfolio, broken In BDT
down by major types of Particulars Million
credit exposure.
Repayable on Demand 4,759.25

Up to 1 month 2,741.85

Not more than 3 months 5,813.10

More than 3 months but less than 1 year 16,058.80

More than 1 year but less than 5 years 14,945.19

More than 5 years 10,544.47

Total 54,862.66
f) By major industry or counterparty type:

i) Amount of impaired loans and The amount of classified loans and advances of the Bank are given below as
if available, past due loans, per Bangladesh Bank guidelines .
provided separately; In BDT
Particulars
Million
Continuous Loans & Advances 569.43
Demand Loans & Advances 286.49
Term Loans & Advances 1,216.17
Credit Cards & Others 19.47
Total 2,091.56
ii) Specific and gener al Specific and general provisions were made on the amount of classified and
provisions; and unclassified loans and advances, off -balance sheet exposures, interest on
receivable, diminution in value of investment and other assets -suspense of the
Bank according to the Bangladesh Bank guidelines .
In BDT
Particulars Million
Provision on classified loans and advances 1,448.79
Provision on unclassified loans and advances 494.57
Provision on Off-balance sheet exposures 104.79
Provision for dim inution in Investments 161.81
Provision against Other Asset 39.62
Total 2,249.58
iii) Charges for specific During the year the specific and general provisions were made on the amount
allowances and charge-offs of classified a nd unclassified loans and advances, off -balance sheet exposure,
during the period. interest on receivable, diminution in value of investment and other assets
( suspense) of the Bank as per Bangladesh Bank guidelines .
In BDT
Particulars
Million
Provision on classified loans and advances 465.69

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119 Annual Report 2023
 Provision on unclassified loans and advances 42.17
Provision on Off -balance sheet exposures (8.20)

Provision for diminution in Investments 20.97

Provision against Other Asset 3.71

Total 524.34

g) Gross Non Performing Assets (NPAs).

Non Performing Assets (NPAs) to Outstanding loans and advances.
Movement of Non Performing Particulars In BDT
Assets (NPAs). Million
Opening balance 1,469.69
Addition/adjustment during the year 621.87
Closing balance 2,091.56

Particulars In BDT
Movement of specific provisions Million
for NPAs . Opening balance 954.67
Provisions made / during the period 465.69
Transferred from unclassified loan & advances 102.10
Write-off (73.68)
Write-back of excess provisions 0.00
Closing Balance 1,448.79

08. Equities: Disclosures for Banking Book Positions

a) The general qualitative disclosure requirement with respect to equity risk, including:

• Differentiation between Investment in equity securities are broadly categorize d into two parts:
holdings on which capital gains i) Quoted Securities (Common or Preference Shares & Mutual Fund)
are expected and those taken that are traded in the secondary market (Trading Book Assets).
under other objectives including
for relationship and strategic ii) Unquoted securities are categorized as banking book equity
reasons; and exposures which are further sub-divided into two g roups:
unquoted securities which are invested without any expectation that
these will be quoted in near future i.e. held for maturity (HFM) , and
securities those are acquired under private placement or IPO and are
going to be traded in the secondary market after completing
required formalities. Unquoted securities are valued at cost.

• Discussion of important policies The primary aim is to investment in these equity securities for the purpose of
covering the valuation and capital gain by selling them in future or held for dividend income. Dividends
accounting of equity holdings in received from these equity securities are accounted for as and when received.
the Banking book. This includes Both Quoted and Un-Quoted equity securities are valued at cost and
the accounting techniques and necessary provisions are maintained , if the prices fall below the cost price.
valuation methodologies used,
including key assumptions and A s per Bangladesh Bank guidelines , the HFT equity securities are revalued
practices affecting valuation as once in each week using marking t o market concept and HTM equity
well as significant changes in securities are amortized once a year according to Bangladesh Bank Guideline.
these practices.
The HTM equity securities are also revalue d if any, are reclassified to HFT
category with the approval of Board of Directors.

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120 Annual Report 2023
 In BDT Million

At
At Cost Market
Value
b) Value disclosed in the balance sheet of investments, as well as the fair value of those 1,599.90 1,409.60
investments; for quoted securities, a comparison to publicly quoted share values where
the share price is materially different from fair value.
The cumulative realized gains (losses) arising from sales and liquidations in the reporting 1.65
c) period.
• Total unrealized gains (losses) (190.30)
d) • Total latent revaluation gains (losses) of T -bills/bonds (134.38)
• Any amounts of the above included in 0.00
Tier -2 capital.
e) Capital requirements broken down by appropriate equity groupings, consistent with the Bank ’s methodology, as
well as the aggregate amounts and the type of equity investments subject to any superv isory provisions regarding
regulatory capital requirements (10% on market value) .

• Specific Market Risk 140.96

• General Market Risk 140.96

09.Interest Rate Risk in the Banking Book (IRRBB)

Qualitative a) The general qualitative disclosur e Interest rate risk is the risk where changes in market interest rates might
disclosure requirement including the nature adversely affect a bank’s financial condition. Changes in interest rates affect
of IRRBB and key assumptions, both the current earnings (earnings perspective) as well as the net worth of
including assumptions regarding the bank (economic value perspective). To evaluate the impact of interest
loan prepayments and behavior of rate risk on the net interest margin, Prime Bank monitors the size of the gap
non-maturity deposits, and between rate sensitive assets and rate sensitive liabilities in terms of the
frequency of IRRBB remaining period to re pricing. Re pricing refers to the point in time when
measurement. adjustments of interest rates on assets and liabilities occur owing to new
contracts, renewal of expiring contracts or that a contract specifies a floating
rate that adjusts at fixed time intervals.

A maturity mismatch approach is used to measure Midland Bank’s exposure

to interest rate risk. A positive mismatch means that more assets than
liabilities are re priced in a given period. With a positive mismatch, a rise in
market interest rates will have a positive effect on the bank’s earnings. On
the other hand, a negative mismatch, where more liabilities are re-priced
than assets in a given period, means a drop in earnings if interest rates had
increased.

The table presented below showing the Interest Rate Risk Analysis of
Midland Bank PLC.. The analysis shows that Bank may have a negative
earnings impact of Taka 2.03 million in the first quarter which has also
negative amounting Tk. 15.85 million in the second quarter. In the third and
fourth quarter, the total year-to-date accumulated earnings impact has also
been negative Tk. 29.06 and 46.42 million respectively .

The rule of thumb suggests that quarterly gaps, causing an earnings impact
of 10% of the Bank’s average quarterly
operating profit for each 1% change in interest rates, should be carefully
handled by the Bank’s Management. The la st row of the following table
reveals that earnings impact on Midland Bank’s average quarterly operating
profit is significant and should be dealt carefully.

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121 Annual Report 2023
Interest Rate Risk Analysis (for 1% change in the market rate of interest)

Quantitative b) The increase Over 3 Over 6 Over 9

discl osure (decline) in earnings Particulars 1 -90 days months to months to months to
or economic value up to 6 up to 9 up to 1 year
(or relevant measure months months
used by In BDT Million
management) for A. A. Rate Sensitive 28,034.43 11,200.03 2,797.80 2,797.80
upward and Assets
downward rate B. B. Rate Sensitive 28,857.40 13,592.0 3,511.35 3,511.35
shocks according to Liabilities
management’s
method for GAP (A-B) (822.97) (2,391.97) (713.55) (713.55)
measuring IRRBB, Cumulative GAP (822.97) (3,214.94) (3,928.49) (4,642.04)
broken down by
currency (as Adjusted Interest Rate 1%
1% 1% 1%
relevant). Changes (IRC)
Quarterly earnings
impact (Cum. (2.03) (15.85) (29.06) (46.42)
GAP*IRC)
Cumulative earnings
impact to date (2.03) (17.88) (46.94) (93.36)

Earning impact /
Average quarterly -0.12% -1.03% -2.69% -5.36%
Operating profit

10. Market Risk

Qualitative a) i) Views of Board of Directors Market risk is the possibility of losses of assets i n balance sheet and off -
disclosure (BOD) ontrading or balance sheet positions arising out of volatility in market variables i.e.,
investment activities. interest rate, exchange rate and price. Allocation of capital is required in
respect of the exposure to risks deriving from changes in interest rates and
equity prices in the Bank ’s trading book, in respect of exposure to risks
deriving from changes in foreign exchange rates and commodity price in
the overall Bank ing activit ies. The total capital requirement for Bank
against its market risk shall be the sum o f capital charges against:
i. Interest rate risk
ii. Equity position risk
iii. Foreign exchange (including gold) position risk throughout the Bank ’ s
balance sheet and
iv. Commodity risk.

ii) Methods used to measure Measurement Methodology:

Market risk. As Bank s in Bangladesh are now in a stage of developing risk management
models, Bangladesh Bank suggested the Bank s for using Standardized
Approach for credit risk capital requirement for Banking book and
Standardized (rule based) Approach for market risk capital charge in their
trading book.
Maturity Method has been prescribed by Bangladesh Bank in determining
capital against market risk. In the maturity method, long or short positions
in debt securities and other sources of interest rate exposures, including
derivative instruments, are slotted into a maturity ladder comprising 13
time-bands (or 15 time -bands in case of low coupon instruments). Fixed -
rate instruments are allocated according to the residual term to maturity and
floating -rate instruments according to the residual term to the next
repricing date.

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122 Annual Report 2023
 The total capital requi rement in respect of market risk is the sum of capital
requirement calculated for each of these market risk sub -categories. e.g. :
a) Capital Charge for Interest Rate Risk = Capital Charge for
Specific Risk + Capital Charge for General Market Risk.
b) Capital Charge for Equity Position Risk = Capital Charge for
Specific Risk + Capital Charge for General Market Risk.
c) Capital Charge for Foreign Exchange Risk = Capital Charge for
General Market Risk.
d) Capital Charge for Commodity Position Risk = Capital charge
for general market risk.
iii) Market Risk Management Treasury Division manages the market risk and ALCO monitors the
system. activities of Treasury Division in managing such risk.

iv) Policies and processes for To mitigate the sever al market risks, the Bank Formed Asset Liability
mitigating market risk. Management Committee (ALCO) who monitors the Treasury Division’s
activities to minimize the market risk. ALCO is primarily responsible for
establishing the market risk management and asset liability management of
the Bank, procedures thereof, implementing core risk management
framework issued by the regulator, best risk management practices
followed by globally and ensuring that internal parameters, procedures,
practices / polices and risk ma nagement prudential limits are a dhere to.

The Treasury Division are taking following measures to minimize the

several market risk s:

i) Foreign Exchange Risk Management: it is the risk that the Bank

may suffer losses as a result of adverse exchange rate
movement during a period in which it has an open position
in an individual foreign currency. This risk measured and
monitored by the Treasury Division. To evaluate the extent
of foreign exchange risk, a liquidity Gap report prepare for
each currency.
ii) Equity Position Risk: Eq uity r isk is defined as losses due to
changes in market price of the equity held. To measure and
identify the risk, mark to market valuation to the share
investment portfolios are done. Mark to market valuation is
done against a predetermined limit. At the time of
investment, following factors are taken into consideration:

a) Security of Investment
b) Fundamentals of securities
c) Liquidity of securities
d) Reliability of securities
e) Capital appreciation
f) Risk factors and
g) Implication of taxes etc.

In BDT Million
Quantitative b) The capital requirements for : Solo
disclosure Interest rate risk 6.50
E quity position risk 281.92
Foreign exchange risk and 83.10
Commodity risk 0.00
Total Capital Requirement 371.52

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123 Annual Report 2023
11. Operational Risk:
Qualitative a) i) Views of BOD on Operational risk is defined as the risk of loss resulting from inadequate or failed
disclosure system to reduce internal processes, people and systems or from external events. This definition
Operational Risk includes legal risk but excludes strategic and reputation risk. It is inherent in every
business organization and covers a wide spectrum of issues. The Board of Director
(BOD) of the Bank and its Management firmly believe that this risk through a control
based environment in which processes see documented, authorization as independent
and transactions are reconciled and monitored. This is supported by an independent
program of periodic reviews undertaken by internal audit, and by monitoring external
operational risk events, which ensure that the group stays in line which industry best
practice and takes account or lessons learned from publicized operational failures
within the financial services industry.
The BOD has also modified its operational risk management process by issuing a
high level standard like SOP, suppleme nted by more detailed formal guidance. This
explains how the Bank manages operational risk by identifying, assessing,
monitoring, controlling and mitigating the risk, rectifying operational risk events, and
implementing any additional procedures required for compliance with local
regulatory requirements.
The Bank maintains and tests contingency facilities to support operations in the event
of disasters. Additional reviews and tests are conducted in the event that any branch
of the Bank is affected by a business disruption event, to incorporate lessons learned
in the operational recovery from those circumstances. Plans have been prepared for
the continued operation of the Bank’s business, with reduced staffing levels .

ii) Performance gap Human Resources

of executives Human Resources Management is one of the key factors of enhancing the Bank’s
staffs. overall performance. The main functions of HR are to find out the latent talent of the
employees and utilize them properly towards achieving orga nizational goal. The
Bank has already established a performance driven working culture to expedite the
utmost effort of its employees.

Our HR mission is to be the employer of choice in the financial sector where the
employee will work with pride and plea sure. MDB believes that Human Resource
Development is a continual process and the output of the development helps the
organization to meet the objective and long term vision of the organization. The
Bank recruits people from all sections of the society bas ed on their competencies. We
highly emphasize on attitude driven talent acquisition process because we don’t offer
merely a job for the employees but we are highly conscious to shape their career and
make them confident for the best fit of the next role. The main motto of Human
Resources Management Division is to hike the service excellency curve for the
internal and external customers of the Bank. The Management team of the Bank with
their talent & skill has now been working for business excellence of the Bank with
new pledge based on professionalism, team work, and strong bondage of
interpersonal relationship with good governance. The new economies with increased
global, regional and local competition coupled with socio -economic sensitivity have
created enormous challenges in organization like private commercial Banks. To cope
with new challenges, our strategic approach is to make the techy so that they can
cope technology based environment. Thus we thrive for caring our people so that
they can positively c ontribute in the profitabili ty curve of the organization.

Workforce Diversity:
MDB believes that organization’s success and competitiveness depends upon its
ability to embrace workforce diversity and realize the benefits. With that believe,
MDB tries to handle workforce diversity in an efficient way so that MDB can
increase adaptability, broader service range, recognize variety of viewpoints, manage
more effective execution. As on 31 December 2023, workforce diversity is furnished
below:

Age Group Male Female Total

Above 50 years 9 0 9

30-50 years 548 58 606

Below 30 years 148 44 192
Total 705 102 807

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124 Annual Report 2023
iii) Potential external Risk factors/Potential external events:
events It is needless to say that there are certain risk factors which are exte rnal in nature and
can affect the business of the Bank. The factors discussed below can significantly
affect the business:
General business and political condition
MDB’s performance greatly depends on the general economic conditions of the
country. The e ffect of recession is still unfolding which may result to slow down
in business environment. Political stability is must for growth in business
activities.
Changes in credit quality of borrowers
Risk of deterioration of credit quality of borrowers is inh erent in Banking business.
This could result due to global economic crisis and supply side distortion. The
changes in the import prices affected the commodity sectors and ship breaking
industry. Deterioration in credit quality requires provisioning.
Changes in policies and practices of regulatory bodies to revise practices,
pricing and responsibilities of the financial institutions
MDB is subject to regulations and compliance of regulation is must. Changes in
policies with regard to interest rates, pricin g have significant effect on the
performance of the Bank. Bangladesh Bank is expected to continue its persuasion
to reduce the spread and charges further which is likely to affect the performance.
Changes in provisioning requirement will also affect the pe rformance of the Bank.

Implementation of Basel-III
Basel -III is fully effective from 2015 and MDB needs to be complied with respect
to credit risk management, its supervision and establishment of effective internal
control. The grading of the borrowers and its link with capital requirement may
slow down the credit expansion. The establishment of effective control requires
more investment in technology and operating expenses are likely to increase.

Changes in market conditions

Changes in market conditio ns particularly interest rates on deposits and volatility
in Foreign Exchange market is likely to affect the performance of the Bank.
Depositors are becoming increasingly price sensitive and any unilateral upward
change by a Bank will exert pressure on interest rate structure of the Banking
sector. It is feared that wage earners remittances may decline due to fall in job
opportunity in international market. Unless offset by export performances, there
may be pressure in the Foreign Exchange market.

The risk of litigation

In the ordinary course of business, legal actions, claims by and against the Bank
may arise. The outcome of such litigation may affect the financial performance of
the Bank.

Success of strategies
MDB is proceeding with its strategic plan and its successful implementation is
very important for its financial performance. Major deviation due to external and
internal factors will affect the performance of the Bank.

iv) Policies and Midland Bank PLC. (MDB) has formed a separate ‘Risk Management Division’ under
processes for Chief Risk Officer to ensure following things:
mitigating Designing of organizational structure by clearly defining roles and
operational risk. responsibilities of individuals involved in risk taking as well as managing it;

Formulation of overall risk assessment and management policies,

methodologies, guidelines and procedures for risk identification, risk
measurement, risk monitoring, defining an acceptable level of risk,
mitigation of all the core risks in line with their respective guidelines
provided by Bangladesh Bank;

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125 Annual Report 2023
 Reviewing and updating all risks on systematic basis as necessary at least
annually, preferably twice a year, ensuring that adequate controls exist and
that the related returns reflect these risks and the capital allocated to
support them. The main risk areas will be (i) Balance sheet Risk
Management, (ii) Credit Risk, (i ii) Foreign Exchange Risk, (iv) Internal
Control and Compliance Risk, (v) Money Laundering Risk and (vi) IT Risk.
The following risk s are also to be reviewed:
Operational Risk
Market Risk
Liquidity Risk
Reputation risk
Insurance Risk
Sustainability Risk
Setting the portfolio objectives and tolerance limits/parameters for each of
the risks;
Formulation of strategies and different model s in consistency with risk
management policy based on IT Policy and in house IT support which can
measure, monitor and maintain acceptable risk levels of the Bank;
Development of information systems/MIS inflow and data management
capabilities to support th e risk management functions of the Bank.
Ensure compliance with the core risks management guidelines at the
department level, and at the desk level;
The unit will work under Bank’s organizational structure and suggest to the
CEO to take appropriate measure s to overcome any existing and potential
financial crisis;
Analysis of self-resilience capability of the Bank;
Initiation to measure different market conditions, vulnerability in investing
in different sectors;
The unit will also work for substantiality of capital to absorb the associated
risk in banking operation.
Activities Undertaken by “Risk Management Division” since inception and
recent approaches
Risk Management Division of MDB is currently arranging monthly / as or when
required meeting on various issues to determine strategies in consistency with
risk management policy, which can measure, monitor, and maintain acceptable
risk level of the Bank. Minutes of each meeting is submitted to Bangladesh
Bank on monthly basis;
Besides, Risk Management Repor t and Comprehensive Risk Management
Report (CRMR) have also been prepared on the basis of monthly and semi-
annually respectively which addressing different areas of risk and their
mitigating tools & techniques guided by the members of Risk Management
Division;
In order to perform the risk management function smoothly, RMD had invited
all the Operational Divisions vide letter to the Head of respective Divisions to
form an internal committee along with defined duties of concerned officials. It
is to be noted here that due to continuous and successful persuasion, all the
Operational Divisions have formulated and established internal risk
management committees.

Stress Testing in MDB:

Risk Management Division (RMD) of MDB has prepared a stress testing model in
line with the Bangladesh Bank’s guideline which initially focused on “Simple
Sensitivity and Scenario Analysis” on the following five risk factors:
Interest rate;
Forced sale value of collateral;
Non-performing loans (NPLs);

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126 Annual Report 2023
 Share prices; and
Foreign exchan ge rate.
The stress testing based on the financial performance of the Bank as on December
31, 2023 has also been completed which shows that the Bank has adequate capital to
absorb minor, moderate and major level of shocks. However, in case of combined
major shocks, some additional capital shall be required.

v) Approach for The Banks operating in Bangladesh shall compute the capital requirements for
calculating capital operational risk under the Basic Indicator Approach (B IA). Under BIA, the capital
charge for charge for operational risk is a fixed percentage, denoted by · (alpha) of average
operational risk. positive annual gross income of the Bank over the past three years. Figures for any
year in which annual gross income is negative or zero, should be excluded from both
the numerator and denominator when calculating the average. The capital charge
may be expressed as follows:

K = [(GI 1 + GI2 + GI3)α]/n

Where-
K = the capital charge under the Basic Indicator Approach
GI = only positive annual gross income over the previous three years (i.e., negative
or zero gross income if any shall be excluded)
α = 15 percent
n = number of the previous three years for which gross income is positive.
Gross income: Gross Income (GI) is defined as “Net Interest Income” plus “Net non-
Interest Income”. It is intended that this measure should:
i). be gross of any provisions;
ii). be gross of operating expenses, including fees paid to outsourcing service
providers;
iii). exclude realized profits/losses from the sale of securities held to maturity in the
Banking book;
iv). exclude extraordinary or irregular items;
v). exclude income derived from insurance.

BDT in Million
Quantitative Particulars Solo Basis
disclosure b) The capital requirement for operational risk 558.85

12. Leverage Ratio

Qualitative a) i) Views of BOD on In order to avoid building-up excessive on - and off-balance sheet leverage in the
disclosure system to reduce excessive banking system, a simple, transparent, non-risk based leverage ratio has been
leverage introduced. The leverage ratio is calibrated to act as a credible supplementary
measure to the risk based capital requirements. The leverage ra tio is intended to
achieve the following objectives:

a) constrain build-up of leverage in the banking sector which can damage the
broader financial system and the economy; and
b) Reinforce the risk based requirements with an easy to understand and a n on-
risk based measure.

The Board of Directors of MDB primarily views on the growth of On -balance and
Off -balance sheet exposures commensurate with its expected growth so that the
excessive leverage is reduced. Within the On-balance components, again, the
Board emphasizes on the growth of the prime component i.e. the loans and
advances and maintaining good asset quality so as to maximize the revenue as well
as the capacity to generate capital internally (in the form of retained earnings) to
trade-off the excessive leverage supposed to be caused by asset growth.

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127 Annual Report 2023
 At the outset of asset growth, the Board also views the growth of its sources of
fund i.e. deposit growth taking into consideration of projected business growth so
that the credit-deposit ratio is maintained at a sustainable basis as well as to
reduce the mismatches of asset-liability gap within the tolerable limit to manage
the liquidity risk.

ii) Policies and processes for To mitigate excessive on and off -balance sheet leverage, the Bank formed Basel
mitigating market risk. Unit who monitors the implementing status of Basel –III within the Bank as per
the guidelines on risk based capital adequacy issued by Bangladesh Bank.

iii) Approach for calculating A minimum Tier 1 leve rage ratio of 3% is being prescribed both at solo and
leverage ratio consolidated level.

The banks will maintain leverage ratio on quarterly basis. The calculation at the
end of each calendar quarter will be submitted to BB showing the average of the
month end leverage ratios based on the following definition of capital and total
exposure.

Tier I Capital (after related deductions)

Leverage Ratio = -----------------------------------------------------
Total Exposure (after related deductions)

BDT in Million
b) Solo
Quantitative Leverage Ratio Leverage Ratio (LR) under BASEL III of Midland Bank PLC. as of 31 December
disclosure 2023 was as under:

Particular s Ratio
BB requirement MDB’s position
Leverage Ratio ≥ 3% 9.76%

On balance sheet Total On -balance Sheet exposure for calculating Leverage Ratio under Basel III of
exposure Midland Bank PLC. as of 31 December 2023 was as under:
Particulars Amount

Total On Balance Sheet Assets [A] 83,425.87

less: To tal Specific Provision [B] 1,448.79
Total Adjusted On Balance Sheet exposure [A -B] 81,977.08

Off balance sheet

6,454.66
exposure
Total exposure Total Exposures for calculating Leverage Ratio under Basel III of Midland Bank
PLC. as of 31 December 2023 was as under:
Particulars Amount
Total On Balance Sheet Exposures [A] 81,977.08
Total Off -Balance Sheet Exposures [B] 6,454.66
less: Total Deduction/ Regulatory adjustments [C] 568.33
Total Adjusted exposure [A+B -C] 87,863.42

13. Liquidity Risk

In line with the provisions of liquidity risk management under BASEL III, Bangladesh Bank on the basis of the relevant guideline of Bank for
International Settlements (BIS) has identified the (i) Liquidity Coverage Ratio (LCR); (ii) Net Stable Funding Ratio (NSFR); and (iii) Leverage under
the purview of ‘Liquidity’ ratio vide BRPD Circular No. 18 dated 21 December 2014 and DOS Circular No. 1 dated 1 January 2015.

Basel-III
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128 Annual Report 2023
Qualitative a) i) Views of BOD on system Liquidity risk arises when the Bank cannot maintain or generate sufficient
disclosure to reduce Liquidity Risk funds to meet its payment obligations as they fall due or can only do so at a
material loss. This can arise when counterparties who provide funding to
the Bank withdraw or do not roll over a line of funding or as a result of a
general disruption in financial markets which lead to normal liquid assets
becoming illiquid.
The Board of Directors reviews the liquidity risk of the Bank on quarterly
rest while reviewing the Quarterly Financial Statements, Stress Testing
Report etc. Besides, the RMC of the Board also reviews the liquidity
position while reviewing the risk status report on quarterly basis.
Upon reviewing the overall liquidity position along with the outlook of
MDB funding need, invest ment opportunity, market/industry trend, the
Board takes its strategic decision regarding deposits, funding, investments,
loans as well as interest rates polices etc.
The Board of MDB always strives to maintain adequate liquidity to meet
up Bank’s overall funding need for the huge retail depositors, borrowers’
requirements as well as maintain regulatory requirements comfortably.

ii) Methods used to measure Measurement Methodology:

Liquidity risk. The maintenance of Cash Reserve Requirement (CRR) and Statutory
Liquidity Ratio (SLR) are considered as the fundamental methods/tools to
measure the liquidity position/risk of MDB

LCR or Liquidity Coverage Ratio is a new liquidity standard introduced by

the Basel Committee.
This standard is built on the metho dologies of traditional liquidity coverage
ratio used by banks to assess exposure to contingent liquidity events. LCR
aims to ensure that a bank maintains an adequate level of unencumbered,
high-quality liquid assets that can be converted into cash to meet its
liquidity needs for 30 calendar days. LCR goes beyond measuring the need
for liquid assets over the next 30 days in a normal environment. It
measures the need for liquid assets in a stressed environment, in which
deposits and other sources of funds (both unsecured and secured) run off,
to various extents, and unused credit facilities are also drawn down in
various magnitudes. These runoffs are in addition to contractual outflows.

The equation:
Stock of high quality liquid assets
LCR = -------------- ------ --------------------------- ≥ 100%
Total net cash outflows over the next 30 calendar days

Definitions for the LCR:

The calculation of the LCR requires three important quantities to be

defined:
A. Total value of stock of high quality liquid assets
B. Total cash outflows, next 30 days (stressed scenario)
C. Total cash inflows, next 30 days (stressed scenario)

Net Stable Funding Ratio:

NSFR or Net Stable Funding Ratio is another new standard introduced by
the Basel Committee.
The NSFR aims to limit over -reliance on short-term wholesale funding
during times of abundant market liquidity and encourage better assessment
of liquidity risk across all on-balance and off-balance sheet items. The
minimum acceptable value of this ratio is 100 percent, indicating that

Basel-III
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129 Annual Report 2023
 available stable funding (ASF) should be at least equal to required stable
funding (RSF). ASF consists of various kinds of liabilities and capital with
percentage weights attached given their perceived stability. RSF consists of
assets and off-balance sheet items, also with percentage weights attached
given the degree to which they are illiquid or “long-term” and therefore
requires stable funding. The time horizon of the NSFR is one year. Like the
LCR, the NSFR calculations assume a stre ssed environment.
The equation:
Available amount of stable funding
NSFR = ------------------------------------------------- ≥ 100%
Required amount of stable funding

The calculation of the NSFR requires two quantities to be defined:

A. availab le stable funding (ASF) and
B. required stable funding (RSF).
NSFR is met if ASF exceeds RSF, that is if ASF/RSF ≥ 1 or 100%.
In addition to the above, the following measures have been put in place to
monitor the liquidity risk management position of the Bank on a continued
manner:
a) Asset -Liability Maturity Analysis (Liquidity profile);
b) Whole sale borrowing capacity;
c) Maximum Cumulative Outflow (MCO);
Besides the above, the following tools are also used for measuring liquidity risk:
a) Stress Testing (Liquidity Stress);
b) Net open position limit - to monitor the FX funding liquidity risk;

iii) Liquidity Risk In MDB, at the management level, the liquidity risk is primarily managed
Management system. by the Treasury Division (Front Office) under oversight of ALCO which is
headed by the Managing Director along with other senior management.
Treasury Division (Front Office) upon reviewing the overall funding
requirements on daily basis sets their strategy to maintain a
comfortable/adequate liquidity position taking into consideration of Bank's
approved credit deposit ratio, liquid assets to total assets ratio, asset -
liability maturity profile, Bank's earning/profitability as well as overall
market behavior and sentiment etc.
Apart from th e above, Financial Administration Division also monitors &
measures the liquidity risk in line with the Basel III liquidity measurement
tools, namely, LCR, NSFR, Leverage Ratio. RMD addresses the key issues
and strategies to maintain the Basel III liquidity ratios to the respective
division (s) on regular interval.

iv) Policies and processes for To mitigate the several liquidity risks, the Bank formed Asset Liability
mitigating liquidity risk. Management Committee (ALCO) who monitors the Treasury Division’s
activities to minimize the liquidity risk. ALCO is primarily responsible for
establishing the liquidity risk management and asset liability management
of the Bank, procedures thereof, implementing core risk management
framework issued by the regulator , best risk management practices
followed by globally and ensuring that internal parameters, procedures,
practices / polices and risk management prudential limits are adhere to.
The Treasury Division are taking following measures to minimize the
several market risks:

A Board approved Liquidity Policy to manage liquidity on a day-to-day

basis and a Contingency Funding Plan to deal with crisis situations are in
place. Contractual maturity of assets and liabilities, liquidity ratios to
include adherence to regulatory requirements and monthly liquidity
forecasts are reviewed at ALCO meetings. Furthermore, liquidity stress
tests are carried out quarterly to assess the impact of extreme events.

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130 Annual Report 2023
 BDT in Million
b) Solo
Quantitative Liquidity Coverage Ratio The Liquidity Coverage Ratio (LCR) under Liquidity Ratios of Basel III of
disclosure Midland Bank PLC. as of 31 December 2023 was as under:
Particulars Ratio
BB requirement MD B’s position
Liquidity Coverage
≥ 100% 223.03 %
Ratio (LCR)

Net Stable Funding Ratio The Net Stable Funding Ratio (NSFR) under Liquidity Ratios of Basel III
(NSFR) of Midland Bank PLC. as of 31 December 2023 was as under:
Ratio
Particulars BB requirement MDB’s position
Net Stable Fundin g
≥ 100% 110..15 %
Ratio (NSFR)

Stock of High quality As stipulated by BB vide DOS Circular Letter No. 1 dated 1 st January
liquid assets 201 5, the Stock of High Quality Liquid Assets (SHQLA) of Midland Bank
PLC. as of 31 December 20 23 was as under:

Total net cash outflows

over the next 30 calendar 7,385.40
days
Available amount of
63,079.72
stable funding (ASF)
Required amount of
stable funding (RSF) 57,267.01

14. Remuneration

Qualitative a) a) Information relating to the i) Name of the bodies At the management level, primarily the
disclosure bodies that oversee that oversee remuneration Human Resources Division oversees the
remuneration. ‘remuneration’ in line with its HR
management strategy/policy under direct
supervision and guidance of Management
Committee (MANCOM) of the Bank The
Bank has approved pay scale approved by
the Board of Directors. Employee type in
MDB is Regular & Contractual.

ii) Composition of the The MANCOM is headed and chaired by

main body overseeing the Managing Director & CEO of the Bank
remuneration along with other members of top executive
management (Additional Managing
Directors) and the Heads of different
functional divisions of Head Office. Head of
Human Resources Division acts as the
Member Secretary of the MANCOM of
MDB. There is a pay scale approved by the
competent authority where the salaries and
increments are fixed designation wise and
the same is followed accordingly.

Basel-III
Midland Bank PLC.
131 Annual Report 2023
 iii) Mandate of the The mandate of the Management Committee
main body overseeing (MANCOM) as the main body for
remuneration overseeing the Bank’s remuneration is to
review the position of remuneration and
associated matters and recommend to the
Board of Directors for approval of its
restructuring, rearrangement and
modification commensurate with the
industry best practices as per requirement.

iv) External The Bank has no External Consultant

consultants whose permanently regarding ‘remuneration’ and
advice has been sought, its process. However, experts’ opinion may
the body by which they have been sought in case to case basis
were commissioned, and regarding income tax matter, lawyers’
in what areas of the opinion for settlement of employees’ dues in
remuneration process. case of death, penalty etc. if required, by the
management.

v) A description of the The Bank does not differentiate the ‘Pay

scope of the bank’s Structure’ and ‘Employee benefits’ by
remuneration policy regions. However, variation in
(e.g. by regions, remuneration is in practice based on nature
business lines), of Job/business line/activity primarily
including the extent to bifurcated for the employees who are
which it is applicable to directly recruited by the B ank and the
foreign subsidiaries and headcounts/employees explored through
branches. outsourcing service providers as per rule.

vi) A description of the We consider the members of the senior

types of employees management, branch managers and the
considered as material employees engaged in different functional
risk takers and as senior divisions at Head Office (except the
managers, including the employees involved in internal control, risk
number of employees in management and compliance) as the
each group. material risk takers o f MDB

b) Information relating to the i) An overview of the Remuneration and other associated matters
design and structure of key features and are guided by the Bank’s Service Rule as
remuneration processes. objectives of well as instruction, guidance from the Board
remuneration policy. from time to time in line with the industry
practice with the objectives of
retention/hiring of experienced, talented
workforce focusing on sustainable growth
of the Bank.

ii) Whether the Human Resources Division under guidance

remuneration committee of MANCOM, the Board and senior
reviewed the bank’s management reviews the issues of
remuneration policy remuneration and its associated matters from
during the past year, and time to time.
if so, an overview of any
changes that was made.

Basel-III
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132 Annual Report 2023
 iii) A discussion of The risk and compliance employees are
how the bank carrying out the activities
ensures that risk and independently as per specific terms
compliance of references, job allocated to them.
employees are
Regarding remuneration of the risk and
remunerated
compliance employees, Human
independently of the
Resources Division does not make any
businesses they
difference with other mainstream/ regular
oversee
employees and sets the remuneration as
per the prevailing rule of the Bank
primarily governed by the employees’
service rule of the Bank.

c) Description of the ways in i) An overview of the The business risk including credit/default
which current and future key risk s that the bank risk, compliance & reputational risk are
risks are taken into account takes into account when mostly considered when implementing the
in the remuneration implementing remuneration measures for each
processes. remuneration employee/group of employee.
measures. Financial and liquidity risk are also
considered.
ii) An overview of the
Different set of measures are in practice
nature and
based on the nature & type of business
type of the key measures
lines/segments etc. These measures are
used to take account
primarily focused on the business
of these risks,
target/goals set for each area of
including risks difficult
operation, branch vis -à-vis the actual
to measure.
results achieved as of the reporting date.
The most vital tools & indicat ors used
for measuring the risks are the asset
quality (NPL ratio), Net Interest
Margin (NIM), provision coverage
ratio, credit -deposit ratio, cost -income
ratio, growth of net profit, as well the
non-financial indicators, namely, the
compliance status with the regulatory
norms, instructions has been brought to
all concerned of the Bank from time to
time.

iii) A discussion of While evaluating the performance of

the ways in which these each employee annually, all the financial
measures affect and non-financial indicators as per pre-
remuneration. determined set criteria are considered;
and accordingly the result of the
performance varies from one to another and
thus affect the remuneration as well.

iv) A discussion of how

the nature and type of
these measures has
changed over the past
No material change has been made during
year and
the year 2023 that could the affect the
reasons for the change, remuneration.
as well as the impact
of changes on
remuneration.

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133 Annual Report 2023
 d) Description of the ways in i) An overview of main The Board sets the Key Performance
which the bank seeks to performance metrics for Indicators (KPIs) while approving the
link performance during a bank, top-level business business target/budget for each year for the
performance measurement lines and individuals. Bank and business lines/segments. The
period with levels of management sets the appropriate tools,
remuneration. techniques and strategic planning (with
due concurrence/approval of the Board)
towards achieving those targets. The most
common KPIs are the achievement of loan,
deposit and profit target with the
threshold of NPL ratio, cost -income ratio,
cost of fund, yield on loans, provision
coverage ratio, capital to risk wei ghted
asset ratio (CRAR), ROE, ROA, liquidity
position (maintenance of CRR and SLR) etc.

ii) A discussion of how The remuneration of each employee is

amounts of paid based on her/his individual
individual remuneration performance evaluated as per set criteria.
are linked to And, accordingly, the aggregate amount
bank-wide and of remuneration of the Bank as a whole
individual performance. is linked/ impacted to the same extent.
iii) A discussion of the
measures the bank will
in general implement to
adjust remuneration in
the event that The Bank follows remuneration process as
performance metrics are per set criteria with no in general
weak. This should adjustment in the event of weak
include the bank’s performance metrics/scorecard.
criteria for determining
“weak” performance
metrics.

e) Description of the ways in i) A discussion of the

which the bank seek to bank’s policy on deferral The Bank pays variable remune ration i.e.
adjust remuneration to take and vesting of Annual Increment based on the yearly
account of longer-term variabl e remuneration performance rating on cash basis with the
performance. and, if the fraction of monthly pay. While the value of longer
variable remuneration term variable part of remuneration i.e. the
that is deferred differs amount of provident fund, gratuity fund are
across employees or made provision on aggregate/indiv idual
groups of employees, a employee basis; actual payment is made
description of the factors upon retirement, resignation etc. as the case
that determine the may be, as per rule.
fraction and their
relative importance.

ii) A discussion of the

bank’s policy and
criteria for adjusting
deferred remuneration
Not Applicable
before vesting and (if
permitted by national
law) after vesting
through claw back
arrangements.

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134 Annual Report 2023
 f) Description of the i) An overview of the The Bank pays variable remuneration on
different forms of forms of variable cash basis (i.e. Direct cre dit to the employee
variable remuneration remuneration offered Bank account and/or Payment
that the bank utilizes (i.e. Cash, shares and Order/Cheque), as the case may be, as per
and the rationale for share-linked instruments rule/practice.
using these different and other forms. A
forms. description of the
elements corresponding
to other forms of
variable remuneration (if
any) should be provided.
ii) A discussion of the The following variable remuneration has
use of the different been offered by MDB to its employees:
forms of variable
remuneration and, if the Annual Increment and Incentive Bonus
mix of different forms Bank provides annual increments and
of variable incentive bonus based on performance to
remuneration differs the employees with the view of medium
across employees or to long term strategy and adherence to
groups of employees), a Midland Bank values.
description the factors
that determine the mix
and their relative
importance.

BDT in Million
Solo
Quantitative b) Number of meetings held by the main body overseeing No such meeting as there is no designated remuneration
disclosure remuneration and remuneration paid to its member. committee. HR Division is assigned to initiate any change
proposal on remuneration as per the Human Resource
Management Policy of the bank and get necessary approval
from BoD.
Number of employees having received a variable remuneration award. 645
Number of guaranteed bonuses awarded. 2 festival bonuses
Total amount of guar anteed bonuses awarded. 42.60
Number of sign -on awards made. Nil
Total amount of sign -on awards made. Nil
Number of severance payments made. Nil
Total amount of severance payments made. Nil
Total amount of outstanding deferred remuneratio n, split into Nil
cash, shares and share-linked instruments and other forms.
Total amount of deferred remuneration paid out.
Breakdown of amount of remuneration awards for the BDT in Million
financial year to show: Fixed 708.32
Variable 26.10
Deferred Nil
Non-deferred Nil
Different forms used (cash, Cash
shares and share linked
instruments, other forms).

Total amount of outstanding deferred remuneration Nil

Total amount of retained remuneration exposed to ex post
Nil
explicit and/or implicit adjustments.
Total amount of reductions during the financial year due
Nil
to ex post explicit adjustments.
Total amount of reductions during the financial year due Nil
to ex post implicit adjustments

Basel-III
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135 Annual Report 2023
Mrs. Nilufer Zafarullah, Honourable Chairman of the Bank presiding over the 10th Annual
General Meeting (AGM) of the Bank held on digital platform.

Mrs. Nilufer Zafarullah, Honourable Chairman of the Bank presiding over the 1st Extraordinary
General Meeting (EGM) of the Bank held on digital platform.

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137 Annual Report 2023
Mr. Rezaul Karim and Mr. Ahsan Khan Chowdhury, honourable Directors of Midland Bank,
presented a token blanket to honourable Prime Minister of People’s Republic of Bangladesh
Sheikh Hasina, MP at a programme held in the Prime Minister’s Office. As part of its
Corporate Social Responsibility (CSR) Programme, Midland Bank PLC. (MDB) donated BDT
15000 pcs of blankets to the “Prime Minister’s Relief Fund” for cold stricken poor people of
the country.

Midland Bank celebrated 10th anniversary of the Bank. Mr. Md. Ahsan-uz Zaman, Managing
Director & CEO of the Bank were present at the event, along with Mr. Md. Zahid Hossain,
Deputy Managing Director and other officials of the Bank.

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138 Annual Report 2023
 Midland Bank held virtual discussion on the Life & Work of Bangabandhu on the occasion
of National Mourning Day. A doa session conducted by Prof. Dr. Moulana Abul Kalam
Azad-Chairman, Chairman, Shariah Supervisory Council of the Bank.

Mr. Md. Ahsan-uz Zaman, Managing Director & CEO of the Bank was present at the Annual
Business Conference 2024 of Retail Distribution Division.

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Midland Bank PLC.
139 Annual Report 2023
Mr. Md. Ahsan-uz Zaman, Managing Director & CEO of the Bank presiding over Annual
Business Strategy Summit 2024 of Institutional Banking Division.

Mr. Md. Ahsan-uz Zaman, Managing Director & CEO of the Bank formally inaugurated two
new rural branches and two new sub-branches of the Bank through digital platform.

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140 Annual Report 2023
 Mr. Md. Ahsan-uz Zaman, Managing Director & CEO of the Bank formally inaugurated
Uttara Shahjalal Avenue Sub-Branch through digital platform.

Mr. Md. Ahsan-uz Zaman, Managing Director & CEO of the Bank presiding over Half-yearly
Business Strategy Summit 2023 of Institutional Banking Division

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141 Annual Report 2023
Midland Bank achieved Excellence in Prepaid Cards (Associate Member) in the category of
“VISA EXCELLENCE AWARD”. Mr. Md. Zahid Hossain, Deputy Managing Director received the
award from the ex-honourable Planning Minister M A Mannan, MP

Midland Bank awarded Integrity Award among the employees and Staff for the Fiscal Year
2022-2023. Mr. Md. Ahsan-uz Zaman, MD & CEO of the Bank, distributed the awards and
certificates among the awardees as Chief Guest.

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 In presence of Nurun Nahar, Honourable Deputy Governor of Bangladesh Bank, Liza
Fahmida, Director, Financial Sector Support and Strategic Planning Department (FSSSPD),
Bangladesh Bank and Mr. Md. Ahsan-uz Zaman, Managing Director & CEO of Midland Bank
PLC. signed the agreement on behalf of the respective organizations for availing refinance
facility in US Dollars

Midland Bank PLC. signed a MoU with NEC Money Transfer Limited, a UK based Global
Money Transfer Company This arrangement will enable Midland Bank to disburse hard
earned remittances of NRBs living in different parts of the world from its Branches and
Agent Banking Centers sourced through NEC Money. Mr. Md. Ahsan-uz-Zaman, Managing
Director & CEO of Midland Bank and Mr. Farazy Ikram, Chairman & CEO of NEC Money
Transfer Limited signed the agreement on behalf of their respective organizations.

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Midland Bank PLC. collaborated with Placid NK Corporation, a Global Money Transfer
Company to establish remittance drawing arrangement. Mr. Md. Ahsan-uz-Zaman, Managing
Director & CEO of Midland Bank and Mr. Mohammed Rashid, Director, Placid NK Corporation
signed the agreement on behalf of their respective organizations.

Midland Bank PLC. signed a Loan Agreement with startup business entiry Agromukam BD
Limited for extending Tk. 1.00 Crore MDB Startup Loan facility to support new technology
driven business ideas. Mr. Md. Ahsan-uz Zaman, Managing Director & CEO of MDB and Mr.
Touhidul Alam Zenith, Chairman of Agromukam BD signed the agreement on behalf of their
respective organizations

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 Midland Bank PLC. signed MoU regarding 'Midland Corporate Payroll Package (MDB CPP)
and Midland Cash Management (MCM)' agreement to facilitate the Employee Payroll
Accounts and Cash Management System of Southeast University (SEU). Prof. Dr. AFM
Mafizul Islam, Vice Chancellor of Southeast University and Mr. Md. Ahsan-uz Zaman,
Managing Director & CEO of Midland Bank signed the MDB CPP and MCM agreements on
behalf of their respective organizations.

MoU was signed between Midland Bank and Zoomlion Heavy Industry Bangladesh
Company Limited for availing online Cash Management solution of MDB “Midland Cash
Management (MCM)” application for conducting their daily business banking and cash
management activities, nationwide. In presence of Mr. Md. Ahsan-uz Zaman, MD & CEO of
the Bank, Mr. Mohd. Javed Tarek Khan, Head of Institutional Banking Division of Midland
Bank and Mr. Simon Zheng, Country Head, Zoomlion Heavy Industry Bangladesh Co. Ltd.
signed the MoU on behalf of their respective organizations.

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145 Annual Report 2023
MoU was signed between Midland Bank and K-ONE Limited for availing online Cash
Management solution of MDB “Midland Cash Management (MCM)” application for
conducting their daily business banking and cash management activities, nationwide. In
presence of Mr. Md. Ahsan-uz Zaman, MD & CEO of the Bank, Mr. Mohd. Javed Tarek Khan,
Head of Institutional Banking Division of Midland Bank and Mr. Gee Shing Chi Roger,
Director, K-ONE Limited signed the MoU on behalf of their respective organizations

MoU was signed between Midland Bank and BIPO Service (Bangladesh) Limited for availing
online Cash Management solution of MDB “Midland Cash Management (MCM)” application
for conducting their daily business banking and cash management activities, nationwide. Mr.
Mohd. Javed Tarek Khan, Head of Institutional Banking Division of Midland Bank and Mr. Md.
Saddam Hossain, Country Head of BIPO Service (Bangladesh) Limited signed the MoU on
behalf of their respective organizations.

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146 Annual Report 2023
 MoU was signed between Midland Bank and Quantanite Bangladesh Limited for availing
online Cash Management solution of MDB “Midland Cash Management (MCM)” application
for conducting their daily business banking and cash management activities, nationwide.
Mr. Mohd. Javed Tarek Khan, Head of Institutional Banking Division of Midland Bank and Mr.
Ahnaf Chowdhury, Chairman, Quantanite Bangladesh Limited signed the MoU on behalf of
their respective organizations.

MoU was signed between Midland Bank and Voltech Bangladesh Private Limited for
availing online Cash Management solution of MDB “Midland Cash Management (MCM)”
application for conducting their daily business banking and cash management activities,
nationwide. Mr. Mohd. Javed Tarek Khan, Head of Institutional Banking Division of Midland
Bank and Mr. C. Natarajan, Senior Vice President, International Operation of Voltech
Bangladesh Private Limited signed the MoU on behalf of their respective organizations.

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147 Annual Report 2023
Midland Bank PLC. signed an MoU with Air Astra Airways, the premium brand private airline
in the country to facilitate all MDB Cardholders to enjoy 10% discount with EMI facility upto
6 months at 0% interest, while purchasing tickets from Air Astra Airways for domestic
destinations. Mr. Md. Rashed Akter, Head of Retail Distribution of MDB and Mr. Mohammad
Mozammel Haque Bhuiya, Head of Marketing & Sales of Air Astra Airways signed the MoU
on behalf of their respective organizations.

Midland Bank PLC. signed an MoU with Ascott The Residence Dhaka, a renowned deluxe
boutique hotel located at Baridhara Diplomatic Zone to facilitate all cardholders of the Bank
to enjoy number of privileges and special rates including 50% yearlong discount on all room
categories and up to 15% discount on food including special discount facilities for their other
services Mr. Md. Rashed Akter, Head of Retail Distribution of MDB and Mr. Nayeem Uddin
Ahmed, Corporate Relationship Manager of Ascott The Residence Dhaka signed the MoU on
behalf of their respective organizations.

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Midland Bank PLC. signed an MoU with AMZ Hospital Limited, one of the famous specialized
Hospital in Bangladesh, located at North Badda, Dhaka to facilitate all MDB Card Holders
(Debit, Credit and Prepaid) and employees of Midland Bank and their dependents to enjoy
up to 30% discount on diagnostic services and 15% discount on radiology & imaging
services. Mr. Md. Rashed Akter, Head of Retail Distribution Division of MDB and Colonel Md.
Arshaduzzaman Khan, PBGM (Retd), Advisor of AMZ Hospital signed the MoU on behalf of
their respective organizations.

Midland Bank PLC. signed an MoU with Dream Square Resort, one of the most luxurious
resorts in Bangladesh to facilitate all MDB Cardholders to receive up to 35% discount on
published room rates and banquet halls, 10% discount on food, 20% discount on movie
theater tickets and 20% discount on lawn tennis and table tennis. Mr. Md. Rashed Akter,
Head of Retail Distribution Division of MDB and Mr. Md. Rafiqul Islam, Asst. Director of Sales
& Marketing of Dream Square Resort signed the MoU on behalf of their respective
organizations.

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MoU was signed between Midland Bank and G. R. Metal, a renowned exporter of non-ferrous
items for availing online Cash Management solution of MDB “Midland Cash Management
(MCM)” application for conducting their daily business banking and cash management
activities, nationwide. Mr. Mohammed Abu Hena, Head of Unit-1, Institutional Banking
Division, Chattogram of Midland Bank and Jewel Ahmed, Proprietor of G. R. Metal signed the
MoU on behalf of their respective organizations.

MoU was signed between Midland Bank and Rasel & Jewel Corporation, a renowned exporter
of non-ferrous items for availing online Cash Management solution of MDB “Midland Cash
Management (MCM)” application for conducting their daily business banking and cash
management activities, nationwide. Mr. Mohammed Abu Hena, Head of Unit-1, Institutional
Banking Division, Chattogram of Midland Bank and Mr. Golam Rasul, Proprietor of Rasel &
Jewel Corporation signed the MoU on behalf of their respective organizations.

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Financial Literacy Day-2024 has been celebrated by Midland Bank PLC. Mr. Mr. Md. Ahsan-uz
Zaman, Managing Director & CEO of the Bank, inaugurated the Financial Literacy Day
programme at the bank’s head office through digital platform.

Midland Bank PLC. under intermediary agreement with Society for Family Happiness and
Prosperity (FHP), an NGO, disbursed loans directly to the farmers at 4% interest rate under
Bangladesh Bank Refinancing Scheme in the Agricultural sector to ensure food safety
initiative of the Country. Mr. Mr. Md. Ahsan-uz Zaman, Managing Director & CEO of Midland
Bank handed over the cheques to the farmers.

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Mr. Mohammad Saleh Ahmed joined Midland Bank Asset Management Company Limited
(MDB AMC), the newly formed Subsidiary Company of Midland Bank as its Chief Executive
Officer (CEO). Mr. Md. Ahsan-uz Zaman, MD & CEO of Midland Bank welcome Mr. Saleh
Ahmed and presented a flower bouquet along with the members of Midland Bank
Investment Committee.

Midland Bank Celebrated International Women’s Day. Mr. Md. Ahsan-uz Zaman, Honourable
MD & CEO along with the Senior Management Team participated in the programme. Female
employees of the Head Office and Gulshan Branch of the Bank joined the event.

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 Midland Bank organized a day long fair at the Ahsanullah University of Science and
Technology Campus to share the various aspects of the newly introduced SME loan product
named “MDB Start-up”. Mr. Md. Ahsan-uz Zaman, MD & CEO along with Mr. Ahsan Jamil
Hossain, Head of SME Banking Division of Midland Bank was present at the inaugural

Midland Bank organized a day long fair at the South East University Campus to share the
various aspects of the CMSME financing facility for the start-up business. Mr. Md. Zahid
Hossain along with Mr. Mohd. Javed Tarek Khan, Head of Institutional Banking Division and
Ahsan Jamil Hossain, Head of SME Banking Division of Midland Bank were present at the
inaugural session of the fair.

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MDB SME Banking Division along with MDB Retail Sales Department conducted a day-long
fair at the Independent University Campus to explain the CMSME Financing Facility for
Start-Up Businesses and how the Bank can assist with start-up business ventures among
university students and faculty members while simultaneously promoting a variety of MDB
products and services.

MDB Retail Sales Department conducted 3 days long Financial Literacy Program and Sales
Campaign, at Bangladesh University of Business and Technology (BUBT) campus. Through
this campaign, MDB raise awareness of banking products and services among university
students and faculty members, while simultaneously promoting a variety of MDB products
and services. Mr. Md. Rashed Akter, Head of Retail Distribution Division along with Mr. Md.
Ashraful Islam, Head of Retail Sales Department of Midland Bank was present at the
inaugural session of the programme.

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 Midland Bank organized fire drill programme at its Head Office (Annex), Zahed Plaza,
30 Gulshan Avenue, Gulshan-02, Dhaka.

As part of its Corporate Social Responsibility (CSR), Midland Bank PLC. (MDB) donated BDT
2.00 lac as financial assistance to Rangpur City Corporation for health care purpose. Mr. Md.
Rezaul Haque, Head of Rangpur Branch of Midland Bank handed over the cheque to the
honourable Mayor of Rangpur City Corporation Mr. Md. Mostafizur Rahman (Mostofa) on
behalf of the Bank.

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As part of its Corporate Social Responsibility (CSR), Midland Bank donated BDT 2.50 lac as
financial assistance to Prime Minister’s Education Assistance Trust with a view to developing
quality human resources for building up an advanced & prosperous Bangladesh. Mr. Md.
Rashadul Anwar, Head of Public Relations Division along with Mr. Abdullah Al Mamun, Head
of Dilkusha Corporate Branch of Midland Bank handed over the cheque to Mrs. Smrity
Karmaker, Managing Director (Additional Secretary), Prime Minister’s Education Assistance
Trust on behalf of the Bank.

On the occasion of National Mourning Day 2023, Midland Bank Foyla Bazar Branch,
Bagerhat carried out the Food Distribution programme in their locality. Different food items
distributed among the needy people to mark the day. Mr. S.M Ashraful Alam, Officer
In-charge, Rampal Thana, Mr. Munshi Borhan Uddin, UP Chairman, 2 No. Ujolkur Union
Parishod and Mr. Amitav Kumar Raha, Acting Head of Foyla Bazar Branch were present
during the Food Distribution Programme along with other officials of the Branch

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 On the occasion of National Mourning Day 2023, tree plantation programme was organized
by Midland Bank PLC.. Midland Bank Rajshahi Branch carried out the tree plantation
programme with the slogan “Let’s plant trees and participate in building Bangabandhu’s
dream country”. Dr. A. B. M. Sharif Uddin, Chief Executive Officer, Rajshahi City Corporation
received and planted number of trees around Rajshahi City Corporation areas, where Deputy
Director Mr. A. K. M. Jakirul Islam of Bangladesh Rural Development Board (BRDB), Rajshahi
also received and planted number of trees in the different location in the city, to observe the
National Mourning Day 2023. Mr. Md. Ahsan Habib, Area Head and Head of Rajshahi Branch
was present during the tree plantation programme.

As part of its Corporate Social Responsibility (CSR) Midland Bank distributed blankets
throughout its Branches and Sub-Branches among the cold stricken marginal people in the
country. As part of this, Mr. Syed Mohammed Omar, Head of Chowdhuryhat Branch,
Chattogram distributed blankets among the cold stricken poor people in the area.

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As part of its Corporate Social Responsibility (CSR) Midland Bank distributed bicycles among School
going meritorious and financially challenged female students of different High School of Dinajpur,
under “SHAPNO JATRA”, a special programme. The Bank distributed bicycles amongst female
students, who have to walk miles from their home to reach their educational institution. Honourable
Mayor of Rajshahi City Corporation Mr. Md. Ahsanul Alam, Head of Doshmile Branch of the Bank
distributed bicycles among the students.

On the occasion of 10th Anniversary of the Midland Bank launched MDB Digital Loan and
MDB Contactless Card. Mr. Md. Ahsan-uz Zaman, Managing Director & CEO along with Mr.
Md. Zahid Hossain, Deputy Managing Director, Mr. Md. Rashed Akter, Head of Retail
Distribution Division and Mr. Md. Abed-ur-Rahman, Head of Cards of the Bank jointly hold the
placard of the new product and new service.

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 On the occasion of 10th Anniversary of Midland Bank, Blood Donation Programme organized
at the Head office of the Bank through Quantum Foundation

On the occasion of 10th Anniversary of Midland Bank, food distribution programme was
arranged through its Branches among the needy at orphanages across the country

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 Sustainability Report
Sustainability
MDB’s sustainability dream reflects the essence of its ambition as social banking and social finance, which focus in particular on
‘here for a long term bond & benefit’ and takes into account the investing based on social responsibility. MDB is moving on with a
legitimate interest of its stakeholders – not only for today’s world, long term customer relationship with customer led models,
but for future generations too. With more responsibility for the products and services.
stakeholders, society and the future, a financial institution can be
rooted deep into the ground of people’s trust, which is key to The bank is emerging with a new set of banking capabilities,
making the journey of a going concern safe and sound. including better insights into customer behaviors and needs, and
Sustainability is becoming an integral part of corporate philosophy, new approaches to reach and engage them. The bank is more
contributing to the long-term performance of a Bank and its return transparent and risk-aware, tries to improve its trust and
to consistent profitability. This new vision is steering the Bank relationships with clients, stakeholders, governments and
towards its goal with a direction of growth that meets expectations regulators, which in turn will make the bank capable to respond
of shareholders, customers, employees, investors, international more efficiently to future regulatory requirements, improve the
partners, regulators, business partners, above all the community bank’s ability to manage risks and avoid costs and penalties of
we operate in. Our stakeholder engagement approach allows us to non-compliance. MDB prioritizes on educating customers about
understand the issues that matter most to those who have an services and products in a more transparent way. We are inclined
interest in our business. to responsible financing considering social and environmental
impacts that cause from bank’s financing and operational activities.
MDB’s Approach to Sustainability We are incorporating our growing understanding of sustainability
Being a responsible partner of the society and economy MDB into risk management and portfolio assessment. The bank is
thrives to contribute towards attaining sustainable development moving with robust IT system to enable our growth and
goals (SDGs) e.g. end poverty and hunger, ensure access to safe operational excellence. The bank is adopting green banking
water, affordable/reliable energy for all, promote sustainable and practices towards reducing the carbon footprint. Developing the
inclusive economic and industrial growth, recycling program, human resources of the bank is very significant with a view to
Bangladesh Delta Plan 2100, Intended Nationally Determined creating sound, efficient and responsive financial institution, where
Contributions (INDCs) to reduce Green House Gas (GHG) emission the management has focus and priority.
& strengthening climate resilience, etc. Midland Bank firmly
believes in good corporate citizenship and helping clients and Fairness in Banking
other key stakeholders to achieve sustainable growth. Three key MDB is bent on providing simple, accessible and innovative solutions
elements mold the central theme of sustainability: to our customers in response to their requirements. Banking is
central to the daily lives of almost everyone, and it’s important that
Entrepreneurship we understand their needs. Bank has taken various initiatives to
A sustainable business model is based on the pursuit of a proactively identify people who may get into financial difficulty so we
socially responsible and environment friendly market can work with customers to improve their situation. We have
opportunities and supporting clients in becoming more reviewed our rates structure (Institution Banking, SME and Retail) as
sustainable themselves. we aim to place customers at the heart of our business decision.

Stewardship Supportive Engagement

Taking responsibility for clients, suppliers, employees and Our Bank’s health is directly influenced by the health and success
reducing the environmental impact. of the business it supports. We provide advice and guidance to
businesses through our Branch Managers and online
Inclusion communication. We know it is a difficult time for some of our
Responsible banking includes people by addressing social, partners and that’s why we created specialist team under
environmental and financial conditions bonding with the ‘Mentorship Programme’ to provide that support.
immediate community that includes our clients, employees
and place where we operate. An Admired Employer
Being good employer is fundamental to our success as a business.
MDB Sustainability Model MDB employees are a diverse and talented group which we
Midland Bank PLC. (MDB) is committed to integrating support and encourage through internal networks and training. We
environmental, social and governance issues into their day-to-day highly value our employees and seek to support them through this
operations. The banking industry is also becoming more process with a range of tools and services to help them find other
competitive, with many new entrants using innovative and inclusive roles, either inside or outside the Bank.
business models to offer differentiated products and services such

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Safe Banking Approach in training our employees, strengthening our screening system and
Managing safety and security of our employees and customers is ensuring that our policies and procedures are effective and up to
one of our fundamental responsibilities. We have adopted date. We devote our efforts to minimize the damaging effects of
continued vigilance to keep up with challenging and changeable financial crimes. The following are key areas; we concentrate to
environment and constantly review and innovate the way we face tackle financial crime:
new challenges.
• Adherence to all applicable laws, regulations and sanctions,
Citizenship and Environmental Concern • Initiatives to prevent Money Laundering and Terrorism
As a growing organization we have a responsibility to manage our Financing,
internal and external impacts. A core part of this is the way we • Strengthening system for prevention of fraud.
govern our environmental, social and ethical risks, not only within
our own operations, but also in relation to companies we lend to. In Employee awareness about fraud trends and combating technique
2024, the bank will strengthen its environmental and social risk is the key to successful financial crime prevention. We have
management system in line with regulatory guidelines. prioritized fraud prevention in coming years; hence planned to
Mentionable, in the year 2020 MDB partnering with both local and launch comprehensive fraud prevention strategy and training for
foreign consultants took initiative to develop ESRM Policy and our employees.
ESRM System of the bank in line with IFC Performance Standard
and with the norms of other multilateral/international lenders. Suspicious Transaction Reporting (STR) and KYC procedure are
tools; Bank is presently executing to prevent financial crimes and
Financial Inclusion money laundering. Our core fraud combating units are security,
Multitudes of people across the country still remain unbanked or compliance and internal audit, IT security, human resource, and
have limited access to banking services. MDB remains committed risk management unit. These units are working together to
to agricultural and rural credit (micro finance) as a means of strengthen fraud prevention management system in the bank.
increasing financial inclusion in the country. We intend to support
this sector by providing a range of financial services to Promoting Sustainable Finance
microfinance institutions (MFIs) as well as through our own branch Steps are taken to introduce green banking products which can in
network. Small and Medium Enterprises plays crucial role in some way or other contribute to the reduction of carbon emissions.
generating jobs and economic growth in Bangladesh. During 2023, Our green finance priorities include ETP, modernization of brick kiln
a good total of 92 CMSME entrepreneurs were added to SME client by advanced technology, Bio-gas Plant, Solar Power System and
base bringing the total to 518 numbers and disbursed a sum of other renewable energy sectors. In our attempt for green finance in
BDT 3,517.80 million which consolidated our SME portfolio with 2023, we have disbursed a sum of BDT 134.94 million for financing
BDT 5,819.30 million outstanding at the year-end. To improve the on Net Metering Rooftop Solar System of Omera Renewable
gender balance in SME finance, we closed the year with BDT 914.70 Energy Limited. Besides, specific environment and social risk
million loan disbursement on account of total 10,061 women management plan and guidelines are in place with the Bank.
entrepreneurs (directly through Bank to 35 number of women Furthermore, in order to promote green financing MDB has also
entrepreneurs and indirectly through MFIs to 10,026 number of signed agreement with Bangladesh Bank to become eligible PIF
women entrepreneurs). Within the CMSME portfolio an amount of under various refinancing scheme like, Green Transformation Fund
BDT 52.40 million has been disbursed in the year 2023 as Term (GTF), Technology Development Fund (TDF) etc.
Loan under pre-finance scheme of Bangladesh Bank. We
continued to explore new ways of increasing financial outreach. We spent an amount of BDT 18.24 million in various CSR activities
in Bangladesh in 2023. To keep our commitment afloat for SME
Due to countrywide lock down imposed by Government to halt the business, woman entrepreneur finance, agri farms, we have made
wide spreading of COVID-19 virus during the year 2020 and 2021, necessary restructuring in our operations, launched campaign for
economy of the country was disrupted and business was adversely SME promotion, participated in SME fairs, added and upgraded
impacted amid the COVID-19 fallout. In an effort to revitalize the delivery channels and built alliance with various banks and micro
economy, GoB continued the declared financial stimulus packages finance organizations for a nationwide banking outreach. We have
to the pandemic affected entities. MDB also was quick to respond to designed new products for various segments in the community for
the request of its CMSME customers whose business were adversely wider financial inclusion and took up promotional initiatives in the
impacted due to outbreak of COVID-19, by allowing working capital market. Our costs in sustainability build-up are taking an upturn
facility under stimulus package. In the year 2023, MDB disbursed every year and we are expecting their positive reflection in our
total BDT 1,407.16 million working capital facility to 16 number of present and future well-being. Furthermore, the Bank made
CMSME customers under the stimulus package for CMSME sector. considerable investment to strengthen capacity and preparedness
to combat money laundering and terrorist financing in the field of
Combating Financial Crime and Money Laundering Risk manning & training, software development, building liaison &
To stave off the risk of financial crime within our business, we focus awareness, etc. to ensure regulatory compliance. Around the year

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2023, we actively pursued the expansion of our business with but underserved segment of the economy. To this effect, the Bank
particular focus on greater welfare of the economy. finance to micro and small enterprises, manufacturing sector and
women entrepreneurs is getting momentum. New strategy has
Contribution to Government Exchequer been set out to expand cluster base financing program. MDB
MDB contribution to government exchequer is adding incentive to disbursed BDT 914.70 million loans to Women Entrepreneurs in the
government effort to mobilize revenues. The strength of our socio calendar year 2023. Bangladesh Bank refinance for Small
economic development generates mainly from government Enterprise and Women Entrepreneurs has enabled the Bank to
revenues. Revenues are widely spent to comfort the lives of open up a soft loan window for small sized business and women
common people, carry out development plans, subsidize real owned projects. The Bank is committed to the implementation of
economies to spur growth and provide salary and benefits to statutory codes of practice on business lending within agreed time
millions of government employees and their families. As per tax frames.
law, the Bank deducts at source income tax, VAT and excise duty
from various payments and services for ultimate credit to The Bank has taken up paperless banking initiatives through using
government exchequer. modern computer software, effective email service for official
correspondence. We have already been using robust banking
MDB for Inclusive Growth software and email connectivity for intra bank official
In line with Bangladesh Bank guidelines and recommendation, the correspondence and with the other organizations on similar
banks have committed to the introduction of a number of market platform. MDB also has taken the policy to use energy savings light
place initiatives to stimulate growth in the economy. MDB has and rational use of air conditioner in its all offices for reducing
committed to these initiatives already launched or planned. electricity consumption. The bank has also policy support to install
solar panel in its rural branches as their source of power. Policy
MDB has decided to increase lending target to small and medium also exists to take coverage of Green Travel Insurance for the
enterprises. The Bank is targeting SME finance to the undeniable carbon emission to be caused by the banking activities of MDB.

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 Green Banking: Towards Sustainable Banking
Green Vision Green Activities of MDB
Even though banking operations directly do not contribute to the Midland Bank PLC. (MDB) is much more aware to implement and
cause of pollution of environment but it has got the huge promote green banking initiatives in line with Bangladesh Bank’s
opportunity to contribute, to promote and activate the green policy guidelines. Bank’s Board of Directors and Management have
concept i.e. making the environment greener in its own way. Bank committed every support, resources and required strategies to the
takes counter party risks in extending the finances to different growth of green business and practices.
trading and industrial concerns as they finance so banks virtually Towards the goal, the Bank has taken a number of initiatives to
as lender take their stake in businesses of the borrowers. It is enrich the green banking practices, which are as follows:
conceivable that bank as financial intermediaries have the capacity
and ability to impress upon the owners of the business to adopt
• Formulated Green Banking Policy approved by the Board of
green practice in their operation to avoid the situation wherein
the Bank.
their financed projects create cause of concern for environmental
• Introduced Green Banking Unit.
pollution or contamination. A green Bank takes into consideration
• Allocated annual budget for green banking.
all sorts of social and environmental factors to merge into a long
• Incorporated environmental risk in CRM.
run sustainable financial gain shared by all of the earth inhabitants.
• Introduced online or paper less banking that eliminate paper
Green Banking initiatives have been undertaken by global
waste, saving gas, carbon emission, reducing printing cost
communities to reduce environmental degradation, lessening
and postage expenses.
carbon emission and reduce utilization of non-renewable
• Signed agreement with BB for re-finance in projects.
resources for the protection of future generations from its impact.
• Developed green financing product encouraging finance to
Green finance as a branch of green banking makes significant
eco-friendly and energy efficient projects.
contribution towards transition to resource efficient and low
• Introduced e-recruitment system.
carbon regime i.e. green industry and green economy in general.
Investment in greener and sustainable projects offer continuing • Facilitated employee training and customers awareness.
multiple economic, social and environmental benefits. • Discharged CSR activities.
• Disclosure of green banking report.
Concepts of Green Banking
Green Banking refers to the efforts of the banking sector to keep Environmental Risk Management
the environment green and to minimize greenhouse effects MDB conducts Environmental & Social Risk Rating (ESRR) for the
through reducing the use of non-renewable energy & materials projects as well as the credit facilities (both new and existing).
(electricity, gas, fuel, paper, stationery etc.), increasing the use of ESRM policy as per BB guidelines is implemented.
renewable or recyclable energy & materials (solar power, bio-gas,
electronic media of communication etc.), reducing the emission of In-house green banking development
industrial carbon, scrutiny of negative impacts of the corporations In view of Green Banking Policy, the Bank has taken measures or
on environment and taking necessary mitigating measures there started building awareness to promote Green Banking within the
against during financing and also to finance green projects (i.e. ETP, bank. Details as follows:
Bio-Gas Plant, Green Factory & Office Building, Solar Power, Hybrid
Hoffman Kiln, energy & water efficient projects, water conservation,
Electricity Consumption
rain water harvesting etc.). Products included in green banking are • Ensuring economic use of electricity by using energy saving
Online Banking, Internet Banking, Mobile Banking, ATM, ADC, lights in bank premises, shutting down the computer
Green Credit, Green Marketing, E-Signatures, Solar Use, Bio-Gas, properly and switching off the computer monitor before
Afforestation etc. leaving office every day, ensuring that light, fans, air
conditioners have been switched off before leaving office
MDB Green Banking Policy every day and using energy efficient electronic equipment.
As part of fulfillment of its obligation to the society Midland Bank
PLC. in its incipient period had taken measures to formulate policy Fuel Consumption
guidelines for green banking in accordance with the instruction • Ensuring economic use of fuel by buying energy efficient
and relevant guidance given by Bangladesh Bank. Since, we are vehicles to reduce gas and petroleum consumption.
well aware of our responsibilities towards the society to encourage
adaption of green banking practices across the broad segments of Paper Consumption
the clientele. In our appraisal process of any project finance as part • Where possible using online communication (e-mail, IP
of due diligence, we intend to ensure that red category message etc.) instead of printed communication, always
manufacturing concern become greener one by its operation, by thinking twice before taking a print, taking print on the both
adopting appropriate technology and factoring them into the side of paper to save paper consumption, using scrap paper
estimated project cost of the promoters. for taking draft print and as note pads.

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Water Consumption Green Reporting and Disclosure
• Ensuring economic use of water in all other cases and not MDB prepares Green Banking & Sustainability Reports to disclose
misusing drinking water. updates on its quarterly activities and engagements to Sustainable
Others Finance Department of Bangladesh Bank as well as to the Board of
• Avoiding use of disposable cups/glasses to become more Directors. Also, Green Report Card on yearly activities is published
eco-friendly. in the annual report and posted on the website.
• Bank’s way forward to a safer, greener & cleaner habitat.

MDB Green Report Card 2023: [Fig. in BDT Million]

Total
SL Particulars
No. of Projects Amount
A Introducing Green Finance
01 Effluent Treatment Plant (ETP)/Environment Friendly Financing 05 233.54
02 Bio-gas Plant
03 Solar Panel system/Renewable Energy Plant 02 153.48
04 Hybrid Hoffman Kiln (HHK) 01 406.23
05 Auto Tunnel Kiln
06 Green Finance at reduced rate of interest
07 Others (if any) Zig Zig Brick Project 04 16.03
Total 12 809.28
B Online Banking
01 No. of ADCs (own ATM & ADM) 63
02 Shared ADCs (Approx.) -
03 No. of Branches with online coverage 39
04 No. of total accounts 275,743
05 No. of accounts facilitated with internet banking 36,421
06 No. of accounts facilitated with Mobile/SMS Banking 50,301
C Awareness Building
01 Training Programs on Green Banking (In-house) -
02 Participants in the Training -
D Disclosure
01 Website Yes
02 Annual Report Yes
03 Preparation of Green Banking & Sustainability Report Others (if any) Yes
E Sector Specific Environment Policy
01 Formulation of Sector Specific Environment Policy
(Under phase)
Others (if any)
F Green Strategic Planning
01 Formulation of Green Strategic Planning
02 Formulation of Bank’s Specific Environment Risk
03 Management Plan & Guideline Others (if any) Yes

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 MDB CSR Activity
Initiated by Bangladesh Bank (BB) in 2008, the Corporate Social Responsibility (CSR) mainstreaming campaign in Bangladesh’s financial
sector has entrusted all Banks and Financial Institutions into a broad range of direct and indirect CSR engagements including humanitarian
relief and disaster response, widening of advancement opportunities for disadvantaged population segments with support in areas of
healthcare, education and training, ‘greening’ initiatives to prevent environmental degradation, and so forth.

With a view to the above, a CSR Policy of Midland Bank PLC. was earlier approved by the Board of Directors of the Bank in February 2015.
The Sustainable Finance Department of Bangladesh Bank in January 2022 introduced a new Policy Guidelines on CSR for the Bank. Also,
Policy on CSR needs to be reviewed / updated considering recent financial developments and changes in the global economy to
generalize, emphasize and organize CSR activities for the environmental, social, equitable and sustainable development of the country.

As per instruction of Bangladesh Bank, MDB formed a dedicated Sustainable Financial Unit, under direct supervision of the Managing
Director of the Bank at the Bank’s Head Office. As per instruction given by the Board of Directors of the Bank, MDB started CSR activities
at the time of its inauguration.

The Board of Directors of the Bank approved total amount of Tk. 1,82,47,084.00 for annual CSR activities of Midland Bank PLC. for the year
2023. Distribution status of the CSR activities of the Bank as on 31st December 2023 are as furnished below:

Sl. No. Particulars Amount Area of Allocation

01. Financial Assistance to the Prime Minister’s Education Assistance Trust

2,50,000.00 Education
under BB instruction
02. Financial Assistance to Mrs. Rani Begum (Marium) for treatment purpose 1,00,000.00 Health Care
03. Financial Assistance to Rangpur City Corporation for supporting the
2,00,000.00 Health Care
public health activities in the city
04. Financial Assistance to Tahmidur Rahman Mahi for treatment purpose 2,00,000.00 Health Care
05. Donation of Bicycles among the female students 3,00,000.00 Education
06. Promotional expenses related to Bangla QR service to promote cashless socily 5,00,000.00 Others
07. Donation of Blankets to the marginal people in the country through
21,49,834.00 Others
MDB branches
08. Donation favoring “home construction fund by private finance” 1,00,00,000.00 Others
Ashrayan Project-2, PMO Dhaka under BAB initiative
09. Donation of Blankets to PMRF under BAB initiative 45,47,250.00 Others
Total 1,82,47,084.00

Based on the above CSR activities, ratio wise distributions of the annual CSR fund of the Bank in 2023 are as follows:

Disaster management, Infrastructure

Allocation Allocation Environment and Development, Sports & Culture,
Particulars for Climate Change Remarks
for Income –generating Activities and
Education Healthcare mitigation & adaptation Other Sector
Ratio Fixed by BB CSR
Policy 30% 30% 20% 20% 100%

Ratio as per MDB CSR 3.01% 2.74% 0% 94.25 100%

fund distribution
Amount of CSR fund
5,50,000 5,00,000 0.00 1,71,97,084 1,82,47,084
distribution

MDB CSR Activity

Midland Bank PLC.
165 Annual Report 2023
Financial Literacy
Financial literacy is the education and understanding of how Mohd. Javed Tarek Khan, Head of Institutional Banking and
money is made, spent, and saved, as well as the skills and ability Member of the Financial Literacy Wing; Md. Rashed Akter, Head of
to use financial resources to make decisions. These decisions Retail Distribution & Head of the Financial Literacy Wing; and
include how to generate, invest, spend, and save money. Financial Imran Al Habib, Head of Agent Banking and Member Secretary of
literacy is essential in order to promote financial inclusion, the Financial Literacy Wing of Midland Bank were also present in
especially in the context of the advancement of Digital Financial the programme along with other officials.
Services (DFS).
Also, as part of the celebration of Financial Literacy Day 2023,
Midland Bank Celebrated Financial Literacy Day various branches, Sub-branches and Agent Banking Centres
Financial Literacy Day 2023 has been celebrated by Midland Bank organized discussion meetings at schools, colleges, madrasas,
PLC. Mr. Md. Ahsan-uz Zaman, Managing Director & CEO of the universities and marginal communities regarding financial
Bank, inaugurated the Financial Literacy Day programme at the awareness and bringing foreign remittances through the banking
bank's head office on Monday, March 6, 2023. channel.

In the discussion meeting organized on this occasion, various Financial Literacy Sessions
issues including increasing social awareness, protecting customer Different programs were conducted by different division,
deposits, providing loans and settling customer complaints, were branches, sub branches and agent banking centers across the
discussed with the aim of sending expatriate income through country-2023.
legal channels.

Financial Literacy
Midland Bank PLC.
166 Annual Report 2023
 Financial
Statements
 Statement of directors on adequacy of the
system of Internal Control
Internal Control is the process designed and enhanced by a company’s Board of Directors,
management and other personnel to provide reasonable assurance regarding the achievement of
organizational objectives in terms of the reliability of financial reporting, effectiveness and efficiency of
operations and compliance with applicable laws, regulations and internal policies. It plays a crucial role
in protecting the organization's resources, preventing and detecting frauds, forgeries, and bringing
operational efficiency.

The Board of Directors of MDB has defined roles as stipulated in the ‘Bank Company (amended) Act
2013’. Therefore, the Directors have worked for maintaining good corporate governance and
persistently discharged their responsibilities. The Directors have also established extensive business
strategies, adopted significant policies for internal control and risk management and implemented
risk-based internal audits as per ‘sections 15 Kha & 15 Ga of the Bank Company (amended) Act 2013’
for ensuring that the Bank is suitably and efficiently managed and controlled.

As Midland Bank PLC. runs on Centralized Banking Model, the Bank has produced timely and effective
policies, circulars and manuals in such a way that adequate control in all its operational and business
functions are established and risk tolerance levels can be maintained at an acceptable level. The
policies and manuals are all approved by the Board after being reviewed in lien with relevant practice
and regulatory requirements of various segments of businesses and operations. The Directors have
also checked and reviewed the control procedures for ensuring the upkeep of the Bank’s assets, the
prevention and detection of fraud and error, the adequacy and completeness of accounting records,
the timely preparation of financial statements and the efficient management of risks.

The Board of Directors monitored the adequacy and usefulness of internal control systems through
the formation of an audit committee. While preparing the audit committee, all the conditions
mentioned in “sections 15 Kha & 15 Ga of the Bank Company (amended) Act 2013, Bangladesh Bank
guidelines and Corporate Governance Guidelines by Bangladesh Securities and Exchange Commission
(BSEC) have been appropriately addressed. As per Bangladesh Bank BRPD Circular No.11, dated 27
October 2013, a 3 (Three) member Board Audit Committee (BAC) was last reconstituted in the 152th
Meeting of the Board of Directors held on 25th February 2024. The committee has reviewed the
system of internal control and management of core risks faced by the Bank. They have also reviewed
the audit process, the Bank’s process for monitoring the compliance with laws and regulations and
codes of conduct of business.

The audit committee has reviewed the arrangements made by management for adding the control
features to the existing Management Information System (MIS). The committee has also reviewed the
corrective actions taken by management relating to fraud-forgery and deficiencies in internal control
revealed in previous years. The committee has placed all the compliance reports before the Board of
Directors and regulators in time and has performed all other oversight functions relating to the internal
control systems of the Bank.

On behalf of the Board of Directors,

Nilufer Zafarullah
Chairman
Date: 28 April 2024

Financial Statements
Midland Bank PLC.
168 Annual Report 2023
 Directors’ Responsibility in relation to
Financial Statements
The Board of Directors has developed the internal financial control system and also continuously
monitoring its effectiveness. The Directors are assured that relevant accounting records have been
maintained and reasonable steps as far as practicable have been taken to ensure the accuracy and
reliability of accounting records for preparation of financial statements. These provide reasonable
assurance for protection of Bank’s assets, maintenance of proper accounting records and reliability of
financial information.

The Directors are satisfied that the Bank has the resources to continue in business for the foreseeable
future and therefore, these financial statements have been prepared on a going concern basis.

The Board has reviewed the external auditors’ report and considered that, these financial statements
for the year 2023 have been prepared using appropriate accounting policies, consistently applied, and
supported by reasonable and prudent judgment and estimates and in compliance with Bangladesh
Accounting Standards (BAS), Bangladesh Financial Reporting Standards (BFRS), Bank Company Act
2013 (amended upto 2018), as per guidelines of the Bangladesh Bank, Company Act 1994, Securities
and Exchange Rules 1987 and other applicable laws and regulations issued by the regulatory bodies
time to time. Any change to accounting policies and reasons for such change is disclosed in the
“Notes to the Financial Statements” of this annual report.

The Board Audit Committee comprised of 3 (three) Directors who has required qualifications and
experience. The Committee has made an independent assessment of the financial reporting system
of the Bank and confirmed that the financial statements for the year ended on 31 December 2023
have been prepared in compliance with relevant accounting principles and regulatory requirements.
The Committee also discussed and exchanged views with the representatives of external auditors and
reviewed the financial statements and recommended to the Board of Director for consideration and
approval of these financial statements for year ended on 31 December 2023.

The Directors are in agreement with the assessment of the audit committee on the reliability of
financial reporting system of the Bank and confirm that these financial statements have been
prepared for internal and external use are in accordance with relevant accounting principles and
regulatory requirements.

On behalf of the Board of Directors,

Nilufer Zafarullah
Chairman
Date: 28 April 2024

Financial Statements
Midland Bank PLC.
169 Annual Report 2023
 Declaration of Managing Director & CEO and
Chief Financial Officer to the Board of Directors
[As per condition No. 1(5) (xxvi) of the Corporate Governance Code]

Date: 25 April 2024

The Board of Directors
Midland Bank PLC.
N.B. Tower
40/7 North Avenue
Gulshan-2, Dhaka-1212

Subject: Declaration on Financial Statements for the year ended on 31 December 2023.

Dear Sirs,

Pursuant to the condition No. 1(5) (xxvi) imposed vide the Commission’s Notification No. BSEC/CMRRCD/2006-158/207/Admin, Dated
03 June 2018 under section 2CC of the Securities and Exchange Ordinance, 1969, we do hereby declare that:

(1) The Financial Statements of Midland Bank PLC. for the year ended on 31 December 2023 have been prepared in compliance
with International Accounting Standards (IAS) or International Financial Reporting Standards (IFRS), as applicable in the
Bangladesh and any departure there from has been adequately disclosed;
(2) The estimates and judgments related to the financial statements were made on a prudent and reasonable basis, in order for
the financial statements to reveal a true and fair view;
(3) The form and substance of transactions and the company’s state of affairs have been reasonably and fairly presented in its
financial statements;
(4) To ensure above, the company has taken proper and adequate care in installing a system of internal control and maintenance
of accounting records;
(5) Our internal auditors have conducted periodic audits to provide reasonable assurance that the established policies and
procedures of the company were consistently followed; and
(6) The management’s use of the going concern basis of accounting in preparing the financial statements is appropriate and there
exists no material uncertainty related to events or conditions that may cast significant doubt on the company’s ability to
continue as a going concern.

In this regard, we also certify that:

(i) We have reviewed the financial statements for the year ended on 31 December 2023 and that to the best of our knowledge and
belief:
(a) these statements do not contain any materially untrue statement or omit any material fact or contain statements that might be
misleading;
(b) these statements collectively present true and fair view of the company’s affairs and are in compliance with existing accounting
standards and applicable laws.
(ii) There are, to the best of knowledge and belief, no transactions entered into by the company during the year which are
fraudulent, illegal or in violation of the code of conduct for the company’s Board of Directors or its members.

Sincerely yours,

Financial Statements
Midland Bank PLC.
170 Annual Report 2023
 Independent Auditor’s Report
To the shareholders of Midland Bank PLC.

Report on the audit

of financial statements

Opinion
We have audited the financial statements of Midland Bank PLC. (the “Bank”), which comprise the
balance sheet as at 31 December 2023 and profit and loss account, statement of changes in equity
and cash flow statement for the year then ended, and notes to the financial statements, including
a summary of significant accounting policies.

In our opinion, the accompanying financial statements of the Bank give a true and fair view of the
financial position as at 31 December 2023, and of its financial performance and its cash flows for the
year then ended in accordance with International Financial Reporting Standards (IFRSs) as
explained in note 2 and other applicable laws and regulations.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditors’ Responsibilities for
the Audit of the Financial Statements section of our report. We are independent of the Bank in
accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for
Professional Accountants (IESBA Code), Bangladesh Securities and Exchange Commission
(BSEC) and Bangladesh Bank, and we have fulfilled our other ethical responsibilities in
accordance with the IESBA Code and the Institute of Chartered Accountants of Bangladesh
(ICAB) Bye Laws. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the financial statements of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters. For each matter below our description of
how our audit addressed the matter is provided in that context.

Financial Statements
Midland Bank PLC.
171 Annual Report 2023
Description of key audit matters Our response to key audit matters
Measurement of provision for loans and advances

The process for estimating the provision for loans, advances We tested the design and operating effectiveness of key
and leases portfolio associated with credit risk is significant controls focusing on the following:
and complex.
• Credit appraisal, loan disbursement procedures,
monitoring and provisioning process;
For the individual analysis for large exposure, provision
• Completeness of appropriate documentation before
calculation considers the estimates of future business
disbursement of loans as well as recording of loan
performance and the market value of collateral provided for
balance;
credit transactions.
• Alternate procedures applied by management to assess
new loan/renewal of existing loans where latest audited
For the collective analysis of exposure on portfolio basis,
financial statements of the borrower is not available;
provision calculation and reporting are manually processed
that deals with voluminous databases, assumptions and • Identification of loss events, including early warning and
estimates of complex design and implementation. default warning indicators;

• Review of quarterly Classification of Loans (CL);

At year end the Bank reported total gross loans and
advances of BDT 54,863 million (2022: BDT 52,793 million) Our substantive procedures in relation to the provision for
and provision for loans and advances of BDT 2,056 million loans and advances portfolio comprised the following:
(2022: BDT 1,578 million).
• Reviewed the adequacy of the general and specific
provisions in line with related Bangladesh Bank
We have focused on the following significant judgements
guidelines;
and estimates which could give rise to material
misstatement or management bias: • Assessed the methodologies on which the provision
amounts are based, recalculated the provisions and
• Completeness and timing of recognition of loss tested the completeness and accuracy of the underlying
events in accordance with criteria set out in BRPD information;
circular no 14, dated 23 September 2012 and BRPD
circular no 03, dated 21 April 2019; and • Evaluated the appropriateness and presentation of
disclosures against relevant accounting standards and
• For individually assessed provisions, the Bangladesh Bank guidelines.
measurement of the provision may be dependent • Finally, compared the amount of provision requirement
on the valuation of collateral, estimates of exit as determined by Bangladesh Bank inspection team to
values and the timing of cash flows; the actual amount of provision maintained

Provision measurement is primarily dependent upon key The Bank has calculated required provision as per
assumptions relating to probability of default, ability to Bangladesh Bank letter DBI-5(IS)/158/2024-504 dated 03
repossess collateral and recovery rates. April 2024 considering total classified loans and advances of
Tk 209.16 crore (3.81%).

See note # 7, 13.01 and 13.02 to the financial statements

Financial Statements
Midland Bank PLC.
172 Annual Report 2023
Risk Our response to the risk
Interest income recognition
Recognition and measurement of interest income involve We tested the design and operating effectiveness of key
complex IT environment as well as require critical estimates controls including automated control over recognition and
and judgment. Since interest income from loans and measurement of interest on loans and advances.
advances is one of the key performance indicators of the
Bank there is an inherent risk of fraud and error in For selected customers and loan files on sample basis we
recognition of interest income. have also performed substantive test of details including
recalculation and cut -of testin g to check accuracy of interest
Accordingly, this has been considered as key audit matter.
income.

Finally, we also conducted substantive analytical procedures

to assess reasonableness of interest recognised during the
year with reference to the product wise outstanding loan
balances.
.
See note # 21 to the financial statements
Valuation of treasury bill and treasury bond

The classification and measurement of T-Bill and T -Bond We assessed the p rocesses and controls put in place by the
require judgment and complex estimates. Bank to identify and confirm the existence of treasury bills
and bonds.
In the absence of a quoted price in an active market, the fair
value of T -Bills and T -Bonds is determined using complex We obtained an understanding, evaluated the design and
valuation techniques which may take into consideration tested the operating effectiveness of the key controls over
direct or indirect unobservable market data and complex the treasury bills and bo nds valuation processes, including
pricing models which require an elevated level of judgment. controls over market data inputs into valuation models,
model governance, and valuation adjustments.
HTM securities which have not matured as at the balance
Furthermore, we have checked Bank's treatment of new
sheet date are amortised at the year end and changes in
circular related to MTM of e HTM as per DOS Circular Letter
amortisation are recognised in other reserves as a part of
No. 27 dated 4 December 2023.
equity. However, new circular has been issued DOS circular
letter no. 27 dated 04 December 2023, where amortization
We tested a sample of the valuation models and the inputs
on HTM securities can be taken into profit and loss account
before maturity. used in those models, using a variety of techniques, including
comparing inputs to available market data.
Similarly, impairment assessment of financial instruments
measured at amortised cost also required mainly Finally assessed the appropriateness and presentation of
unobservable market data and assumptions. disclosures against relevant accounting standards and
Bangladesh Bank guidelines.
Accordingly, this is considered as a key audit matter.

See note # 6 to the financial statements

Financial Statements
Midland Bank PLC.
173 Annual Report 2023
Impairment assessment of unquoted investments
In the absence of a quoted price in an active market, the fair We have assessed the processes and controls put in place by
value of unquoted shares and bonds, especially any the Company to ensure all major investment decisions are
impairment is calculated using valuation techniques which undertaken through a proper due diligence process
may take into consideration direct or indirect unobservable
market data and hence require an elevated level of We tested a sample of investments valuation as at 31
judgment. December 2023 and compared our results to the recorded
value.

Finally we assessed the appropriateness and presentation of

disclosures against relevant accounting standards and
Bangladesh Bank guidelines.

As per the business model, management has considered

quoted and unquoted shares together as part of its
investment portfolio for calculation of required provision.
See note # 6.02 and Annex B to the financial statements

IT systems and controls

Our audit procedures have a focus on IT systems and We tested the design and operating effectiveness of the Bank’s
controls due to the pervasive nature and complexity of the IT access controls over the information systems that are critical
IT environment, the large volume of transactions processed to financial reporting.
in numerous locations daily and the reliance on automated
and IT dependent manual controls. We tested IT general controls (logical access, changes
management and aspects of IT operational controls). This
Our areas of audit focus included user access management, included testing that requests for access to systems were
developer access to the production environment and appropriately reviewed and authorized.
changes to the IT environment. These are key to ensuring
IT dependent and application based controls are operating We tested the Bank’s periodic review of access rights and
effectively reviewed requests of changes to systems for appropriate
approval and authorization.

We considered the control environment relating to various

interfaces, configuration and other application layer controls
identified as key to our audit.

Financial Statements
Midland Bank PLC.
174 Annual Report 2023
 Legal and regulatory matters
We focused on this area because the Bank operates in a We obtained an understanding, evaluated the design and tested
legal and regulatory environment that is exposed to the operational effectiveness of the Bank’s key controls over the
significant litigation and similar risks arising from disputes legal provision and contingencies process.
and regulatory proceedings. Such matters are subject to
many uncertainties and the outcome may be difficult to We enquired to those charged with governance to obtain their
predict. view on the status of all significant litigation and regulatory
matters.
These uncertainties inherently affect the amount and
timing of potential outflows with respect to the provisions We enquired of the Bank’s internal legal counsel for all significant
which have been established and other contingent liabilities. litigation and regulatory matters and inspected internal notes
and reports.
The Bank has taken initiative to save cost from the
budgeted cost as per BRPD circular 28 and 30 of 2022. We assessed the methodologies on which the provision amounts
are based, recalculated the provisions, and tested the
Overall, the legal provision represents the the Bank’s best completeness and accuracy of the underlying information.
estimate for existing legal matters that have a probable and
estimable impact on the Bank’s financial position. We also assessed the Bank’s provisions and contingent liabilities
disclosure.

We have obtained all the relevant documents and verified as per

audit procedure.

Deferred tax asset is significantly higher than prior year due to

consideration of BDT 1,449 million of specific provision for loans
and advances in tax calculation from this year.

Reporting on other information

Management is responsible for the other information. The other information comprises all of the information in the Annual Report other
than the financial statements and our auditors’ report thereon. The Annual Report is expected to be made available to us after the date
of this auditor’s report.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion
thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information identified above when it
becomes available and, in doing so, consider whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, on the other information that we obtained prior to the date of this audit report, we conclude
that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this
regard.

Responsibilities of Management and Those Charged with Governance for the Financial Statements and
Internal Controls
Management is responsible for the preparation and fair presentation of the financial statements of the Bank in accordance with IFRSs
as explained in note 2, and for such internal control as management determines is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due to fraud or error. The Bank Company Act, 1991 and the Bangladesh
Bank Regulations require the Management to ensure effective internal audit, internal control and risk management functions of the
Bank. The Management is also required to make a self-assessment on the effectiveness of anti-fraud internal controls and report to
Bangladesh Bank on instances of fraud and forgeries.

Financial Statements
Midland Bank PLC.
175 Annual Report 2023
In preparing the financial statements, management is responsible for assessing the Bank’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either
intends to liquidate and the Bank or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Bank’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the
audit. We also:
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt
on the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Bank to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and
whether the financial statements represent the underlying transactions and events in a manner that achieves fair
presentation.

• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within
the Bank to express an opinion on the financial statements. We are responsible for the direction, supervision and
performance of the Bank’s audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in
the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our
auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such communication.

Financial Statements
Midland Bank PLC.
176 Annual Report 2023
Report on other Legal and Regulatory Requirements
In accordance with the Companies Act, 1994, the Securities and Exchange Rules 2020, the Bank Company Act, 1991 and the rules and
regulations issued by Bangladesh Bank, we also report that:

(i) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the
purpose of our audit and made due verification thereof;
(ii) to the extent noted during the course of our audit work performed on the basis stated under the Auditor’s Responsibility section
in forming the above opinion on the financial statements and considering the reports of the Management to Bangladesh Bank
on anti-fraud internal controls and instances of fraud and forgeries as stated under the Management’s Responsibility for the
financial statements and internal control:
(a) internal audit, internal control and risk management arrangements of the Bank as disclosed in the financial statements
appeared to be materially adequate;
(b) nothing has come to our attention regarding material instances of forgery or irregularity or administrative error and
exception or anything detrimental committed by employees of the Bank {other than matters disclosed in these financial
statements};
(iii) in our opinion, proper books of account as required by law have been kept by the Bank so far as it appeared from our
examination of those books;
(iv) the records and statements submitted by the branches have been properly maintained and the financial statements;
(v) the balance sheet and profit and loss account together with the annexed notes dealt with by the report are in agreement with
the books of account and returns;
(vi) the financial statements have been drawn up in conformity with prevailing rules, regulations and accounting standards as well as
related guidance issued by Bangladesh Bank;
(vii) adequate provisions have been made for advance and other assets which are in our opinion, doubtful of recovery;
(viii) the information and explanations required by us have been received and found satisfactory;
(ix) we have reviewed over 80% of the risk weighted assets of the Bank and spent over 2,000 person hours; and

(x) Capital to Risk-weighted Asset Ratio (CRAR) as required by Bangladesh Bank has been maintained adequately during the year.

___________________
Sabbir Ahmed, FCA
Enrolment no: 770
Dhaka, 28 April 2024 Hoda Vasi Chowdhury & Co
DVC: 2404280770AS831983 Chartered Accountants

Financial Statements
Midland Bank PLC.
177 Annual Report 2023
Midland Bank PLC.
Balance Sheet
As at 31 December 2023

Notes 2023 2022

BDT BDT
PROPERTY AND ASSET

Cash 3.00 3,793,328,925 3,494,965,793

In Hand (Including Foreign Currency) 891,750,221 782,034,355
With Bangladesh Bank and its agent Bank (including Foreign Currency) 2,901,578,704 2,712,931,438

Balance with other Banks & Financial Institutions 4.00 1,998,110,179 2,568,427,930
In Bangladesh 1,986,136,023 2,455,383,089
Outside Bangladesh 11,974,157 113,044,841

Money at Call and Short Notice 5.00 529,900,000 120,000,000

Investments 6.00 17,380,106,715 16,905,790,238

Government 13,889,641,408 13,186,012,591
Others 3,490,465,307 3,719,777,647

Loans and Advances/ Investments 7.00 54,862,657,994 52,792,807,266

Loans Cash Credit Overdrafts etc./ Investment 51,379,100,087 49,606,134,790
Bills Purchased and Discounted 3,483,557,906 3,186,672,476

Fixed Asset including Premises Furniture & Fixtures 8.00 610,749,511 574,669,903

Other Asset 9.00 4,238,430,461 3,397,619,330

Non-Banking Asset 10.00 12,585,359 12,585,359

Total Property and Asset 83,425,869,144 79,866,865,819

LIABILITIES AND CAPITAL

Borrowing from other Banks Financial Institutions & Agents 11.00 6,317,165,470 8,243,230,054

Deposit and Other Accounts 12.00 60,302,724,245 57,763,010,073

Current Deposit & Other Accounts 8,169,877,872 8,881,655,198
Bills Payable 465,290,468 293,988,162
Short Notice Deposit 6,955,027,629 7,512,112,992
Savings Deposit 5,638,958,266 5,071,243,226
Fixed Deposit 33,068,915,121 30,664,800,460
Deposit Scheme 6,004,654,888 5,339,210,034

Other Liabilities 13.00 7,655,316,913 6,214,086,209

Total Liabilities 74,275,206,628 72,220,326,337

Capital/Shareholders' Equity 9,150,662,516 7,646,539,482

Paid up Capital 15.00 6,396,697,530 5,696,697,530
Statutory Reserve 16.00 1,881,769,558 1,626,329,243
Revaluation Reserve on Investment in Securities 17.00 3,337,887 1,155,553
Retained Earnings 18.00 868,857,541 322,357,156
Total Liabilities and Shareholders' Equity 83,425,869,144 79,866,865,819

Net Asset Value (NAV) per share 14.31 11.95

Financial Statements
Midland Bank PLC.
178 Annual Report 2023
Midland Bank PLC.
Balance Sheet
As at 31 December 2023

Notes 2023 2022

BDT BDT
Off-Balance Sheet Items
Contingent Liabilities 19.00 13,956,919,981 12,674,943,388
Acceptance and endorsements 2,730,710,963 2,372,539,171
Letter of Guarantee 5,920,478,530 5,299,179,936
Irrevocable Letter of Credit 3,910,719,905 3,627,750,631

Bills for Collection 1,395,010,583 1,375,473,650

Other Contingent Liabilities - -
Other Commitments
- -
Documentary credits and short term trade related transactions
- -
Forward asset purchased and forward deposit placed
- -
Undrawn note issuance and revolving underwriting facilities
- -
Undrawn formal standby facilities credit lines and other commitments
Liabilities against forward purchase and sale - -
- -
13,956,919,981 12,674,943,388
Total Off Balance Sheet Items including Contingent Liabilities

The annexed notes form an integral part of these accounts

________________________ ________________________ ________________________ ________________________

Md. Ahsan-uz Zaman Rezaul Karim Nazimuddin Chowdhury Nilufer Zafarullah
Managing Director & CEO Director Director Chairman

Signed as per annexed report on even date

Place of Issue: Dhaka Sabbir Ahmed FCA

Dated: 28 April 2024 Enrolment No.: 770
DVC: 2404280770AS831983 Hoda Vasi Chowdhury & Co.
Chartered Accountants

Financial Statements
Midland Bank PLC.
179 Annual Report 2023
Midland Bank PLC.
Profit and Loss Account
For the year ended 31 December 2023

Particulars Notes 2023 2022

BDT BDT

Interest Income/Profit on Investment 21.00 4,503,457,426 3,657,213,524

Less: Interest/Profit Paid on Deposit and Borrowing, etc. 22.00 3,740,456,753 3,201,241,946
Net Interest Income 763,000,674 455,971,578

Income from Investment 23.00 1,612,525,212 1,455,080,301

Commission, Exchange and Brokerage 24.00 684,076,384 736,385,608
Other Operating Income 25.00 132,141,671 98,250,555
2,428,743,266 2,289,716,464
Total Operating Income 3,191,743,940 2,745,688,042

Less: Operating Expenditure

Salary and Allowances 26.00 689,099,442 616,491,994
Rent, Tax, Insurance, Electricity 27.00 106,191,329 92,037,039
Legal Expense 28.00 2,330,726 1,690,799
Postage, Stamps and Telephone 29.00 22,434,428 19,558,274
Printing, Stationery, Advertisement 30.00 52,902,540 39,433,272
Managing Director's Remuneration 26.01 19,218,548 18,600,000
Directors' Fee 31.00 3,036,000 2,877,600
Audit Fee 32.00 460,000 460,000
Depreciation on and Repair to Bank's Property 33.00 290,611,869 246,803,651
Other Expenditure 34.00 262,454,792 181,008,263
Total Operating Expenses 1,448,739,675 1,218,960,892
Profit before provision 1,743,004,265 1,526,727,150

Provision for Loans, Advances & Off Balance Sheet

General Provision 35.00 42,169,773 (190,712,133)
Special General Provision -COVID 19 (58,541,581) (15,424,217)
Specific Provision 465,692,649 499,978,973
Provision for Off Balance Sheet Exposures (8,201,414) 3,147,903
Provision for Investments & Placement 20,970,939 109,228,208
Provision for Non-Banking Asset - -
Provision against Other Asset 3,712,324 31,872,837
Total Provision 465,802,690 438,091,571
Profit Before Tax 1,277,201,575 1,088,635,579

Less: Provision for Tax 36.00 144,094,932 526,666,750

Current Tax 690,119,544 544,233,456
Deferred Tax (546,024,612) (17,566,707)

Net Profit After Tax 1,133,106,643 561,968,829

Retained Surplus Brought Forward 18.01 2,522,279 11,680,504
1,135,628,922 573,649,333

Financial Statements
Midland Bank PLC.
180 Annual Report 2023
Midland Bank PLC.
Profit and Loss Account
For the year ended 31 December 2023

Particulars Notes 2023 2022

Appropriation: BDT BDT
Transferred to Statutory Reserve 37.00 255,440,315 217,727,116
Transferred to CSR Fund 38.00 - 27,945,373
Transferred to Start Up Fund 11,331,066 5,619,688
266,771,381 251,292,177
Retained Surplus, Carried Forward 868,857,541 322,357,156
Earnings Per Share 40.00 1.77 0.88

The annexed notes form an integral part of these accounts

________________________ ________________________ ________________________ ________________________

Md. Ahsan-uz Zaman Rezaul Karim Nazimuddin Chowdhury Nilufer Zafarullah
Managing Director & CEO Director Director Chairman

Signed as per annexed report on even date

Place of Issue: Dhaka Sabbir Ahmed FCA

Dated: 28 April 2024 Enrolment No.: 770
DVC: 2404280770AS831983 Hoda Vasi Chowdhury & Co.
Chartered Accountants

Financial Statements
Midland Bank PLC.
181 Annual Report 2023
Midland Bank PLC.
Cash Flow Statement
For the year ended 31 December 2023

Particulars Notes 2023 2022

A) Cash Flow From Operating Activities: BDT BDT
Interest Received 6,036,815,276 4,745,403,245
Interest Paid on Deposits, Borrowings, etc. (3,505,383,708) (3,013,688,308)
Dividend Income 89,384,604 93,976,232
Fees & Commission Income 678,460,905 715,871,376
Recoveries of Loans previously written off - -
Cash Paid to Employees as Salaries and Allowances (708,317,991) (635,091,994)
Income Tax Paid (565,209,672) (595,479,520)
Cash Received From Other Operational Income 42.00 132,141,671 98,250,555
Cash Paid for Other Operational Expenses 43.00 (511,428,176) (373,167,214)
Cash Flow From Operating Activities Before Changes in Net Current Asset 1,646,462,910 1,036,074,372
Changes in Net Current Asset :
Investment in Treasury Bond (137,934,124) (825,769,434)
Loans & Advances (2,145,746,795) (6,925,324,857)
Other Asset 260,205,910 (303,402,649)
Non-Banking Assets - -
Bank Deposit (2,622,668,529) (2,032,311,845)
Customers' Deposit 5,019,046,587 8,891,320,996
Borrowing from Other Banks, Financial Institutions & Agents (1,926,064,584) 2,293,928,075
Other Liabilities 258,406,734 267,888,535
(1,294,754,802) 1,366,328,821
Net Cash Flow From Operating Activities 351,708,108 2,402,403,193
B) Cash Flow From Investing Activities:
Investments in Shares & Bonds 229,312,340 (1,100,943,288)
Proceeds from Sale of Fixed Assets - 414,949
Purchase of Fixed Asset (265,343,311) (153,030,817)
Net Cash Flow From Investing Activities (36,030,971) (1,253,559,157)
C) Cash Flow From Financing Activities:
Receipts from Issue of Capital 700,000,000 -
Dividend Paid (319,834,877) (284,834,877)
Net Cash Flow From Financing Activities 380,165,124 (284,834,877)
D) Net Increase in Cash and Cash Equivalents 695,842,261 864,009,160
E) Effect of Changes of Exchange Rates on Cash and Cash Equivalents 5,615,479 20,514,233
F) Opening Cash and Cash Equivalents 6,184,288,623 5,299,765,231
Closing Cash and Cash Equivalents (D+E+F) 6,885,746,363 6,184,288,623
The above closing Cash and Cash Equivalents include:
Cash in Hand 891,750,221 782,034,355
Balance with Bangladesh Bank and its Agent Bank 2,901,578,704 2,712,931,438
Balance with Other Banks & Financial Institutions 1,998,110,179 2,568,427,930
Money at Call and Short Notice 529,900,000 120,000,000
Treasury Bill 563,725,058 -
Prize Bond 682,200 894,900
6,885,746,363 6,184,288,623
Net Operating Cash Flow Per Share 41.00 0.55 4.22
The annexed notes form an integral part of these accounts

________________________ ________________________ ________________________ ________________________

Md. Ahsan-uz Zaman Rezaul Karim Nazimuddin Chowdhury Nilufer Zafarullah
Managing Director & CEO Director Director Chairman

Place of Issue: Dhaka

Dated: 28 April 2024

Financial Statements
Midland Bank PLC.
182 Annual Report 2023
 Midland Bank PLC.
Statement of Changes in Equity
For the year ended 31 December 2023

Revaluation Surplus
Particulars Paid-up Capital Statutory Reserve Retained Earnings Total
on Investments
BDT BDT BDT BDT BDT

Balance as at 01 January 2023 5,696,697,530 1,626,329,243 1,155,553 322,357,157 7,646,539,482

Receipts from Issue of Capital 700,000,000 - - - 700,000,000
Dividend paid - - - (319,834,877) (319,834,877)
Revaluation Reserve transferred during the period - - 2,182,334 - 2,182,334
Net Profit for the year after tax - - - 1,133,106,643 1,133,106,643
Appropriation made during the period - 255,440,315 - (255,440,315) -

Midland Bank PLC.

Transferred to Start Up Fund - - - (11,331,066) (11,331,066)
Balance as at 31 December 2023 6,396,697,530 1,881,769,558 3,337,887 868,857,542 9,150,662,516

183
Balance as at 31 December 2022 5,696,697,530 1,626,329,243 1,155,553 322,357,157 7,646,539,482
0 1 (1) (0)

The annexed notes form an integral part of these accounts

Annual Report 2023

________________________ ________________________ ________________________ ________________________
Md. Ahsan-uz Zaman Rezaul Karim Nazimuddin Chowdhury Nilufer Zafarullah
Managing Director & CEO Director Director Chairman

Signed as per annexed report on even date

Place of Issue: Dhaka

Dated: 28 April 2024

Financial Statements
 Midland Bank PLC.
Liquidity Statement
For the year ended 31 December 2023

Less than 1 to 3 3 to 12 1 to 5 Above Total

Particulars
1 month months months years 5 years

BDT BDT BDT BDT BDT BDT

ASSETS :

Financial Statements
Cash in hand & Balance with Bangladesh Bank 1,529,668,331 - - - 2,263,660,594 3,793,328,925
Balance with other Banks and Financial
1,446,900,000 247,600,000 303,610,179 - - 1,998,110,179
Institutions
Money at Call & Short notice 529,900,000 - - - - 529,900,000

Investments 2,562,000 601,900,000 2,362,100,000 6,152,580,000 8,260,964,715 17,380,106,715

Loans and Advances/Investments 7,501,100,000 5,813,100,000 16,058,800,000 14,945,185,257 10,544,472,737 54,862,657,994

Fixed Asset - - - 184,062,112 426,687,399 610,749,511

Other Asset - 57,000,000 400,600,000 2,820,000,000 960,830,461 4,238,430,461

Midland Bank PLC.

Non-Banking Asset - - - - 12,585,359 12,585,359

Total Assets 11,010,130,331 6,719,600,000 19,125,110,179 24,101,827,369 22,469,201,265 83,425,869,144

184
LIABILITIES :
Borrowing From Other Banks, Financial
677,600,000 145,000,000 1,292,000,000 1,013,865,470 3,188,700,000 6,317,165,470
Institutions & Agents
Deposit and Other Account 15,716,200,000 13,876,500,000 15,088,100,000 14,951,928,764 669,995,481 60,302,724,245

Provision & Other Liabilities 192,722,298 128,064,727 - 2,168,959,249 5,165,570,640 7,655,316,913

Total Liabilities 16,586,522,298 14,149,564,727 16,380,100,000 18,134,753,483 9,024,266,121 74,275,206,628

Annual Report 2023

Net Liquidity (5,576,391,967) (7,429,964,727) 2,745,010,179 5,967,073,886 13,444,935,144 9,150,662,516

The annexed notes form an integral part of these accounts

________________________ ________________________ ________________________ ________________________

Md. Ahsan-uz Zaman Rezaul Karim Nazimuddin Chowdhury Nilufer Zafarullah
Managing Director & CEO Director Director Chairman
Signed as per annexed report on even date
Place of Issue: Dhaka
Dated: 28 April 2024
 Midland Bank PLC.
Notes to the Financial Statements
As at and for the year ended 31 December 2023

Corporate Profile and Significant Accounting Policies

1.00 Midland Bank PLC.

1.01 Legal status and nature of the entity

Midland Bank PLC. (the “Bank") was incorporated on 20 March 2013 as a Public Limited Company in Bangladesh under
Companies Act, 1994 with the registered office at N.B. Tower (Level 6 to 9), 40/7 North Avenue, Gulshan-2, Dhaka-1212. The
Company was also issued Certificate of Commencement of Business on the same day. It started commercial banking
operation on 20 June 2013 through opening first branch at Dilkusha Commercial Area in the name ‘Dilkusha Corporate Branch.
Presently, the number of branches stood at 39 (19 Urban Branches and 20 Rural Branches), 19 Sub Branches, 65 ATMs, 127
Agent Banking Centers (ABCs) and 10 Collection Booths covering commercially important locations across the country.

1.02 Principal activities of the Bank

The principal activities of the Bank are to provide wide range of financial products (loans and deposits) and services that
includes all kinds of Conventional and Islamic banking services to its customers. It offers commercial banking, consumer
banking, trade services, cash management, treasury, cottage micro small and medium enterprises (CMSMEs), retail,
debit/credit cards services and clearing services to its customers. These activities are conducted through its Branches, Sub-
branches, Agent Banking Centers (ABCs), Collection Booths and Alternative Delivery Channels (ATM booths, Internet
Banking, Debit/Credit/Prepaid Cards, etc.) across the country. MDB digital banking service is the Bank’s flagship product to
provide internet based banking solutions. MDB online banking facilities like-fund transfer to utility bills payment, buying air
tickets, paying bills of mobile phones, credit cards, and insurance premiums and then tracking of accounts and even
shopping from over 200 retailers. MDB digital banking service is integrated with bkash, Rocket, Nagad and Upay payment
system as well. The Bank also provides Off-shore banking services through its Off-shore Banking Unit (OBU) and Islami
banking services through its Islamic Banking Window (MDB Saalam).

1.03 Off-shore banking

Off-shore banking unit (OBU) after getting approval from Bangladesh Bank launched its operation on 20 June 2020. It is a
separate business unit of the Bank, operates its business through a separate counter at Head Office, as governed under the
rules and guidelines vide Bangladesh Bank's letter reference no. BRPD (P 3) 744 (101)/2010-4129 dated 10 November 2009
and a Policy for Off-shore banking operation issued by Bangladesh Bank through BRPD circular no. 02 dated 25 February
2019 and BRPD circular letter no. 09 dated 27 May 2019. It gives loans (on and off-balance sheet exposures) and takes
deposits in freely convertible foreign currencies to and from person/institution not resident in Bangladesh and Type-A
(wholly foreign owned) units in EPZs in Bangladesh. It also gives long term loans to industrial units outside EPZs and Type-B
and Type-C industrial units within the EPZs subject to compliance by the industrial units with the guidelines of Bangladesh
Investment Development Authority (BIDA) and Bangladesh Bank. Besides, this unit provides bill discounting/financing
facilities accepted by Authorised Dealer (AD) in Bangladesh against usance LCs in accordance with Bangladesh Bank (BB)
guidelines. Separate financial statements of Off-shore banking unit have been disclosed in the annual report 2023.

1.04 Islamic banking window (MDB Saalam)

The Bank obtained permission for Islami banking window from Bangladesh Bank. Islami banking window (MDB Saalam)
after getting approval from Bangladesh Bank launched on 23 April 2020. The Bank is operating its Islami banking under one
window in Gulshan Branch, Dhaka. Through the Islamic banking window, the Bank extends all types of Islami
shariah-compliant finances like lease, hire purchase shirkatul melk (HPSM), bai muazzal, household scheme, etc., and
different types of deposits like mudaraba/manarah savings deposits, mudaraba/manarah term deposits, al-wadeeah
current deposits, monthly/quarterly profit paying scheme, etc. Separate financial statements of Islamic banking windows
have been disclosed in the annual report 2023.

1.05 Agent banking

Midland Bank got agent banking license from Bangladesh Bank on July 10, 2016 and started its agent banking operation
from January 23, 2017 with a view to reach unbanked population particularly in the geographically dispersed area and offer
banking services to potential customers who are currently out of traditional banking periphery. The Bank provides a wide
range of banking services through agent banking centers in 29 Districts and 65 Upazilas/Thana across the country to
ensure the safety of customer deposits and provide modern banking services. Through Midland agent banking center, we
are providing services like account opening, fund transfer, deposit and withdrawal, loan disbursement and realization of loan
installments, utility bill collection, foreign remittance disbursement, debit and credit card issuance, etc. Besides this, we are

Financial Statements
Midland Bank PLC.
185 Annual Report 2023
 able to transfer money from Midland Bank to Mobile Financial Services, i.e., bKash, Rocket, Nagad, Upay and also able to
transfer money from bKash and Rocket to Midland Bank’s Accounts. Customers can avail both Islamic banking services and
Conventional banking services from any agent banking center.

2.00 Basis of preparation of financial statements and significant accounting policies

2.1.1 Basis of preparation of financial statements

The separate financial statements of the Bank for the year ended on 31 December 2023 comprise those of domestic
banking unit (both conventional and Islamic banking) and Off-shore banking unit (OBU). There were no significant changes
in the nature of principal business activities of the Bank and Off-shore banking unit (OBU) during the financial year 2023.

2.1.2 Statement of Compliance

The Financial Reporting Act 2015 (The Financial Reporting Act 2015 (FRA) was enacted in 2015. Under the FRA, the Financial
Reporting Council (FRC) was formed in 2017 and has since then adopted International Accounting Standards (IASs) and
International Financial Reporting Standards (IFRSs) as the applicable Financial Reporting Standards for public interest
entities such as banks with effect from 2nd November 2020.

Accordingly, the financial statements of the Bank are prepared in accordance with IFRSs (including IASs) and the
requirements of the Bank Company Act, 1991 (amendment up to 2018), the rules and regulations issued by Bangladesh
Bank, the Companies Act 1994, The Securities and Exchange Ordinance 1969, Bangladesh Securities and Exchange
Commission Act 1993, Bangladesh Securities and Exchange Commission (Public Issues) Rules 2020, Income Tax Ordinance
and Rules 1984, The Value Added Tax and Supplementary Duty Act 2012, The Value Added Tax and Supplementary Duty
Rules 2016, Financial Reporting Act, 2015, Dhaka Stock Exchange Ltd. (DSE), Chittagong Stock Exchange Ltd. (CSE) and
Central Depository Bangladesh Ltd. (CDBL) rules and regulations. In case any requirement of the Bank Company Act, 1991
(amendment up to 2023), provisions, circulars and guidelines issued by Bangladesh Bank differ with those of IFRSs
(including IASs), the requirements of the Bank Company Act, 1991 (amendment up to 2023), provisions, circulars and
guideline issued by Bangladesh Bank shall prevail. Material departures from the requirements of IFRS:

In addition to foregoing directives and standards, the operation of Islamic banking windows, are accounted for in
accordance with Financial Accounting Standards issued by the Accounting and Auditing Organization for Islamic Financial
Institutions, Bahrain, and BRPD circular no. 15, dated November 09, 2009. The operation of Off-shore banking unit is also
accounted for in accordance with Financial Reporting Standards issued by ICAB. A separate balance sheet and profit & loss
account are shown in Annexure - G & G-1 and H & H-1, respectively, and the figures appearing in the annexure have been
incorporated in the related heads of these financial statements as recommended by the central shariah board of the Bank.

It is noteworthy to mention that IFRS-16 “Leases” had been applied effective from 1 January 2020. The related changes to
significant accounting policies and its affect are described in note 2.02.1.

Difference between IAS/IFRS and Bangladesh Bank regulations

The financial statements of the Bank have been prepared as on 31 December 2023 under the historical cost basis, except
for certain investments which are stated at fair/market value, in accordance with the First Schedule (Section 38) of the Bank
Company Act, 1991(Amended upto 2023), BRPD Circular # 14, dated 25 June 2003 and DFIM Circular # 11, dated 23 December
2009, other Bangladesh Bank circulars, IAS and IFRS as adopted by ICAB, the Companies Act, 1994, and other laws and rules
applicable in Bangladesh. In case, any requirement of provisions and circulars issued by Bangladesh Bank differs with those
of other regulatory bodies, the provisions and circulars issued by Bangladesh Bank shall prevail. In order to comply with the
rules and regulations of Bangladesh Bank, MDB departed from those contradictory requirements of IFRS/IAS, which are
disclosed below.

i. Presentation of financial statements

IFRS: As per IAS-1, a complete set of financial statements comprises statement of financial position (balance sheet), statement
of profit and loss, statement of changes in equity, statement of cash flows, notes comprising a summary of significant
accounting policies and other explanatory information and comparative information. IAS-1 has also stated the entity to
disclose assets and liabilities under current and non-current classification separately in its statement of financial position.

Bangladesh Bank: The presentation of these financial statements in prescribed format (i.e. balance sheet, profit and loss
account, cash flow statement, statement of changes in equity, liquidity statement) and certain disclosures therein are
guided by the First Schedule (section-38) of the Bank Company Act, 1991 (Amended upto 2018) and BRPD circular no. 14
dated 25 June 2003 and subsequent guidelines of Bangladesh Bank. In the prescribed format there is no option to present
assets and liabilities under current and non-current classification.

Financial Statements
Midland Bank PLC.
186 Annual Report 2023
ii. Investment in shares, mutual fund and other securities

IFRS: As per requirements of IFRS-9, classification and measurement of investment in shares and securities will depend on
how these are managed (the entity’s business model) and their contractual cash flow characteristics. Based on these factors
it would generally fall either under “at fair value through profit and loss account” or under “at fair value through other
comprehensive income” where any change in the fair value (as measured in accordance with IFRS 13) at the year-end is
taken to profit and loss account or other comprehensive income respectively.

Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 investments in quoted and unquoted shares are revalued
on the basis of year-end market price and Net Assets Value (NAV) of last audited balance sheet, respectively. As per
instruction of DOS circular letter no. 3 dated 12 March 2015, investment in mutual fund (close-end) is revalued at lower of
cost and higher of market value and 85% of NAV and another DOS circular letter no. 10 dated 28 June 2015, investment in
mutual fund (open-end) is revalued at lower of cost and higher of market value and 95% of NAV. As such, provision is made
for any loss arising from diminution in value of investments (portfolio basis); otherwise investments are recognised at costs.

iii. Revaluation gain/loss on government securities

IFRS: Government securities refer primarily various debt instruments which include both bonds and bills. As per
requirements of IFRS-9 Financial Instruments, bonds can be categorised as “Amortised Cost (AC)” or “Fair Value through
profit and loss account (FVTPL)” or “Fair Value through other comprehensive income (FVOCI)”. Bonds designated as
amortised cost are measured at amortised cost method and interest income is recognised through profit and loss account.
Any changes in fair value of bonds designated as FVTPL is recognised in profit and loss account. Any changes in fair value
of bonds designated as FVOCI is recognised in other reserve as a part of equity.

As per requirements of IFRS 9, bills can be categorised either as “Fair Value Through Profit or Loss (FVTPL)” or “Fair Value
through Other Comprehensive Income (FVOCI)”. Any change in fair value of bills is recognised in profit and loss or other
reserve as a part of equity respectively.

Bangladesh Bank: Held for Trading (HFT) securities are revalued on the basis of mark to market on weekly basis and any
gains on revaluation of securities which have not matured at the balance sheet date are recognized in other reserves as a
part of equity and any losses on revaluation of securities which have not matured at the balance sheet date are charged in
the profit and loss account. Interest on HFT securities including amortization of discount are recognized in the profit and loss
account. HTM securities which have not matured at the balance sheet date are amortized at the year end and any losses are
recognized through profit and loss account and gains on amortization are recognized in other reserve as part of equity.

iv. Repo and reverse repo transactions

IFRS: As per IFRS-9 when an entity sells a financial asset and simultaneously enters into an agreement to repurchase the
asset (or a similar asset) at a fixed price on a future date (repo), the arrangement is treated as a loan and the underlying
asset continues to be recognised at amortised cost in the entity’s financial statements. The difference between selling price
and repurchase price will be treated as interest expense. The same rule applies to the opposite side of the transaction
(reverse repo).

Bangladesh Bank: As per Department of off-site supervision (DOS) circular letter no. 06 dated 15 July 2010 and subsequent
clarification in DOS circular no. 02 dated 23 January 2013, when a bank sells a financial asset and simultaneously enters into
an agreement to repurchase the asset (or a similar asset) at a fixed price on a future date (repo or stock lending), the
arrangement is accounted for as a normal sales transaction and the financial asset is derecognised in the seller’s book and
recognised in the buyer’s book.

v. Provision on Loans and Advances/Investments

IFRS/IAS: As per IFRS-9 an entity shall recognize an impairment allowance on loans and advance/investments based on
expected credit losses. At each reporting date, an entity shall measure the impairment allowance for loans and
advances/investments at an amount equal to the lifetime expected credit losses, if the credit risk on these loans and
advances/investments has increased significantly since initial recognition whether assessed on an individual or collective
basis considering all reasonable information, including that which is forward looking. For those loans and
advances/investments for which the credit risk has not increased significantly since initial recognition, at each reporting
date, an entity shall measure the impairment allowance at an amount equal to 12 month expected credit losses that may
result from default events on such loans and advances/investments that are possible within 12 months after reporting date.

Financial Statements
Midland Bank PLC.
187 Annual Report 2023
 Bangladesh Bank: As per BRPD circular No.14, 23 September 2012, BRPD circular No. 19, 27 December 2012, BRPD circular
No. 05, 29 May 2013, BRPD circular No. 16,18 November 2014, BRPD circular no (P-1)/661/13/2021-12262, 27 December 2021,
BRPD circular 50, 14 December 2021 and BRPD circular 52, 29 December 2021, a general provision at 0.25% to 5% under
different categories of unclassified loans/investments (good/standard/SMA loans) has to be maintained regardless of
objective evidence of impairment. Also provision for sub-standard, doubtful and bad losses has to be provided at 20%, 50%
and 100%, respectively for loans and advances/investments depending on the duration of overdue. Again, as per BRPD
circular no. 10, dated 18 September 2007 and BRPD circular no. 14, dated 23 September 2012, a general provision at 1% is
required to be provided for all off-balance sheet exposures excluding bills for collection. Such provision policies are not
specifically in line with those prescribed by IAS-39.

vi. Recognition of interest in suspense

Bangladesh Bank: As per BRPD circular no. 14, dated 23 September 2012, once a loan/investment is classified, interest on
such loan/investment is not allowed to be recognized as income, rather the corresponding amount needs to be credited to
an “Interest Suspense Account”, which is presented as liability in the balance sheet.

vii. Other comprehensive income

IFRS/IAS: As per IAS-1 other comprehensive income (OCI) is a component of financial statements or the elements of OCI
are to be included in a Single Comprehensive Income (SCI) statement.

Bangladesh Bank: The templates of financial statements issued by Bangladesh Bank do not include the Other
Comprehensive Income (OCI), nor are the elements of other comprehensive income allowed to be included in a Single
Comprehensive Income (SCI) statement. As such, the Bank does not prepare other comprehensive income statement.
However, elements of OCI, if any, are shown in the statements of changes in equity.

viii. Financial instruments – presentation and disclosure

In several cases Bangladesh Bank guidelines categories, recognize, measure and present financial instruments differently
from those prescribed in IFRS-9. As such, full disclosure and presentation requirements of IFRS-7 and IAS-32 cannot be
made in the financial statements.

ix. Financial guarantees

IFRS/IAS: As per IFRS-9, financial guarantees are contracts that require the issuer to make specified payments to reimburse
the holder for a loss it incurs because a specified debtors fails to make payment when due in accordance with the original
or modified terms of a debt instrument. Financial guarantee liabilities are recognised initially at their fair value plus
transaction costs that are directly attributable to the issue of the financial liabilities. The financial guarantee liability is
subsequently measured at the higher of the amount of loss allowance for expected credit losses as per impairment
requirement and the amount initially recognised less, income recognised in accordance with the principles of IFRS 15.
Financial guarantees are included within other liabilities.

Bangladesh Bank: As per BRPD circular no.14, financial guarantees such as letter of credit, letter of guarantee will be treated
as off-balance sheet items. No liability is recognized for the guarantee except the cash margin. As per BRPD Circular no. 06,
Dated 25 April 2023 and Bangladesh Bank guidelines, the bank is required to maintain provision at 0% to 1% on such
off-balance sheet items, excluding bills for collection.

x. Cash and cash equivalents

IFRS/IAS: Cash and cash equivalent items should be reported as cash item as per IAS-7.

xi. Non-banking assets

IFRS/IAS: No indication of non-banking assets is found in any IFRS/IAS.

Bangladesh Bank: Non-banking assets were acquired by the entity due to failure of borrowers to repay the loan in time
taken against mortgaged property. The Bank was awarded absolute ownership one (1) mortgaged properties (land) through
the verdict of honorable court. The value of the properties has been recognised in the financial statements as non-earning
assets on the basis of third party valuation report. As per BRPD circular no. 22, dated 20 September 2021 and BRPD circular
no. 14, dated 25 June 2003, there is a separate balance sheet item named non-banking assets existed in the standard format

xii. Cash flow statement

IFRS/IAS: Cash flow statement can be prepared either direct method or indirect method as per IAS 7. The presentation is
selected to present these cash flows in a manner that is most appropriate for the business or industry. The method selected
is applied consistently.

Financial Statements
Midland Bank PLC.
188 Annual Report 2023
 Bangladesh Bank: As per BRPD circular no 14, dated 25 June 2003, cash flows statement has been prepared following a
mixture of direct and indirect methods.

xiii. Balance with Bangladesh Bank: (Cash Reserve Ratio-CRR)

IFRS/IAS: CRR maintained with Bangladesh Bank should be treated as other asset as it is not available for use in day to day
operations as per IAS 7.
Bangladesh Bank: Balance with Bangladesh Bank including CRR is treated as cash and cash equivalents.

xiv. Presentation of intangible assets

IFRS/IAS: An intangible asset must be identified, recognized and disclosure must be given as per IAS-38.

Bangladesh Bank: As per BRPD circular no. 22, dated 20 September 2021 and BRPD circular no. 14, dated 25 June 2003,
there is a separate balance sheet item named non-banking assets existed in the standard format.

xv. Off-balance sheet exposers

IFRS/IAS: There is no concept of off-balance sheet items in any IFRS/IAS. Hence, there is no requirement for disclosure of
off-balance sheet items on the face of the balance sheet.

Bangladesh Bank: As per BRPD circular no.14, dated 25 June 2003, off balance sheet items (e.g. Letter of Credit, Letter of
Guarantee, etc.) must be disclosed separately on the face of the balance sheet and 1% provision has to be maintained on it
as guided by the regulator.

xvi. Disclosure of appropriation of profit

IFRS/IAS: There is no requirement to show appropriation of profit on the face of income statement.

Bangladesh Bank: As per BRPD circular no. 14, dated 25 June 2003, an appropriation of profit should be disclosed in the face
of profit and loss account.

xvii. Loans and advances/investments net of provision

IFRS/IAS: Loans and advances/investments should be presented net of provision.

Bangladesh Bank: As per BRPD 14, dated 25 June 2003, provision on loans and advances/investments are presented
separately as liability and cannot be netted off against loans and advances/investments.

xviii. Recovery of written off loans and advances/investments

IFRS/IAS: As per IAS-1 an entity shall not offset assets and liabilities, or income and expenses, unless required or permitted
by IFRS/IAS. The recovery of written off loans/investments should be charged to the profit and loss account as per IFRS-15.

Bangladesh Bank: As per BRPD circular no.14, dated 25 June 2003, recoveries of amount previously written off should be
adjusted with specific provision on loans and advances/investments.

xix. Uniform accounting policy

IFRS/IAS: As per Para 19 of IFRS-10, a company shall prepare financial statements using uniform accounting policies for like
transactions and other events in similar circumstances.

BSEC: As per guideline of Bangladesh Securities and Exchange Commission (BSEC), Bank has to keep adequate provision
on diminution value of investments and certain provision has to be made on impairment of clients’ margin
loans/investments.

2.1.3 Basis of Measurement

The financial statements of the Bank has been prepared on historical cost basis except of the following:
i) Government Treasury bills/bonds designated as 'Held for Trading (HFT)' are present at value using marking to market
concept with gain crediting to revaluation reserve;
ii) Government Treasury bills/bonds designated as 'Held to Maturity (HTM)' are carried at amortised cost;
iii) Investment in shares of listed companies are prepared at market value .

Financial Statements
Midland Bank PLC.
189 Annual Report 2023
2.1.4 Going concern
The accompanying financial statements have been prepared on a going concern assumption that the Bank will continue in
its operation over the foreseeable future. The Bank has neither any intention nor any legal or regulatory compulsion to
liquidate or curtail materially the scale of any of its operations. Key financial parameters (including liquidity, profitability,
asset quality, provision sufficiency and capital adequacy) of the Bank continued to demonstrate a healthy trend for a couple
of years. The Bank has been awarded A+ in long term, ST-2 in short term and Stable in Outlook Status by Emerging Credit
Rating Limited (ECRL). The management does not see any issue with respect to going concern due to recent pandemic
COVID-19. Besides, the management is not aware of any other material uncertainties that may cast significant doubt upon
the Bank's ability to continue as a going concern.

2.1.5 Functional and presentation currency

These financial statements are presented in Bangladesh Currency (BDT), which is the Bank’s both functional and
presentation currency. Figures appear in these financial statements have been rounded off to the nearest BDT.

2.1.6 Use of estimates and judgments

In preparation of the financial statements, management required to make judgments, estimates and assumptions that
affect the application of accounting policies and reported amount of assets, liabilities, income and expenses. Actual results
may differ from these estimates. Estimates and underlying assumptions are reviewed considering business realities on a
going concern basis. Revision to accounting estimates are recognized in the period in which the estimates are revised and
in any future periods affected. The most significant areas where estimates and judgments have been applied to the
following:
- Provision for loan and advances/investments- as explained in note # 2.2.5.(d)
- Income tax - as explained in note # 2.4.8
- Deferred tax assets/liabilities - as explained in note # 2.4.9
- Employee benefit -as explained in note # 2.5

Useful lives of depreciable assets regard to non-current assets - as stated below:

Asset Category Depreciation Rate Useful Life
Computer & Peripherals 20% 5 Year
Furniture & Fixture 10% 10 Year
Office Equipment 20% 5 Year
Motor Vehicles 20% 5 Year
Books 20% 5 Year
Intangible Assets 20% 5 Year

However, underlying assumptions on estimates are reviewed on a going concern basis and revisions thereon are
recognised in the period in which the estimates are revised. It is also required to disclose the contingent assets and liabilities
at the date of the financial statements in accordance with the guidelines as prescribed by IAS-37 “Provisions, Contingent
Liabilities and Contingent Assets”.

Provisions
Provisions are liabilities that are uncertain in timing or amount. Provisions are recognised in the following situations:
- The entity has a present (legal or constructive) obligation as a result of past events;
- Probable out flow of resources to settle the obligation and the obligation can be measured reliably;
- It is more likely than not that outflow of resources will be required to settle the present obligation exists at the end of the
reporting period.

Contingent liabilities
A contingent liability is a possible obligation that arises from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events. A contingent liability arises when some, but not all,
of the criteria for recognizing a provision are met. IAS-37 applies prudence by deeming a past event to give rise to a present
obligation and an entity shall not recognize a contingent liability. However, if it is possible rather than probable that an
obligation exists, a contingent liability will exist, not a provision in the financial statements. An entity shall disclose for each
class of transaction of contingent liability at the end of the reporting period if the contingent liability is not remote.

Contingent Assets
A contingent asset is possible asset that arises from past events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. Contingent
assets are never recognised; rather they are disclosed in the financial statements when they arise.

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Midland Bank PLC.
190 Annual Report 2023
2.1.7 Consistency
In accordance with IFRS framework for the presentation of financial statements together with IAS-1
“Presentation of Financial Statements” and IAS-8 “Accounting Policies, Changes in Accounting Estimates and
Errors”. MDB discloses its information consistently from one period to the next, where selecting and applying a
new accounting policies, changes in accounting policies, correction of errors, the amount involved are accounted
for and disclosed retrospectively in accordance with the requirement of IAS-8. However, for changes in the
accounting estimates, the related amount is recognized prospectively in the current period and in the next
period or periods.

2.1.8 Reporting period

These financial statements cover one calendar year from 01 January 2023 to 31 December 2023.

2.1.9 Dividend
Dividend on ordinary shares is recognised as a liability and deducted from retained earnings when they are
approved by shareholders at the Annual General Meeting (AGM) of the Bank.

Dividend on ordinary shares for the year that is recommended by the Directors after the balance sheet date for
approval of shareholders at the Annual General Meeting are disclosed in note # 2.21 to the financial statements.

2.1.10 Date of authorization

The Board of Directors has authorised these financial statements for public issue on 28th April 2024.

2.1.11 Cash flows Statement

Statement of cash flows have been prepared in accordance with the International Accounting Standard IAS 7
"Statement of Cash Flows" and under the guideline of Bangladesh Bank BRPD Circular No. 14, dated 25 June
2003. The Cash Flow statement shows the structure of and changes in cash and cash equivalents during the
year. It cash flows during the period have been classified as operating activities, investing activities and financing
activities.

2.1.12 Statement of changes in equity

Statement of changes in equity has been prepared in accordance with IAS 1 “Presentation of financial
statements” and following the guidelines of Bangladesh Bank BRPD circular no.14, dated 25 June 2003.

2.1.13 Liquidity statement

The liquidity statement of assets and liabilities as on the reporting date has been prepared on residual maturity
term as per following basis:
SL Particulars Basis
1 Cash, balance with other banks and financial institutions Stated maturity/Observed behavioral trend.
money at call and short notice, etc.
2 Investments Residual maturity term.
3 Loan and advance / investment Repayment/Maturity schedule and behavioral trend (non-
maturity products)
4 Fixed assets Useful life
5 Other assets Realisation/Amortisation basis
6 Borrowing from other banks and financial institutions Maturity/Repayment term
7 Deposits and other accounts Maturity/behavioral trend (non-maturity products)
8 Other long term liabilities Maturity term
9 Provisions and other liabilities Settlement/adjustment schedule basis

2.1.14 Financial statements for off-shore banking unit (OBU)

Foreign currency transactions are converted into equivalent BDT using the prevailing exchange rates on the
dates of respective transactions as per IAS-21 “The Effects of Changes in Foreign Exchange Rates". Foreign
currency balances held in US Dollar are converted into BDT. at weighted average rate of inter-bank market as
published by Bangladesh Bank on the closing date of every month. Balances held in foreign currencies other
than US Dollar are converted into equivalent US Dollar at buying rates of New York closing of the previous day
and converted into BDT. Differences arising through buying and selling transactions of foreign currencies on
different dates of the year have been adjusted by debiting/crediting exchange gain or loss account.

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191 Annual Report 2023
2.1.15 Offsetting
Financial assets and liabilities are offset and the net amount is presented in the balance sheet when, and only
when, the Bank has a legal right to set off the recognised amounts and it intends either to settle on a net basis
or to realise the asset and settle the liability simultaneously. Income and expenses are presented on a net basis
only when permitted under IFRSs, or for gains and losses arising from a Bank of similar transactions such as in
the Bank’s trading activity.

2.2 Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in these financial
statements of the Bank and those of the Bank have been applied consistently except otherwise instructed by
Bangladesh Bank as the prime regulator. Certain comparative amounts in the financial statements have been
reclassified and rearranged to conform to the current year’s presentation (if any).

2.2.1 Accounting policy for IFRS 16: Leases

At the inception of a contract, the bank assesses whether a contract is, or contains, a lease. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration. At the commencement or on modification of a contract that contains a lease
component, the bank allocates the consideration in the contract to each lease component on the basis of its
relative stand-alone prices.
The bank recognises a right-of-use asset and a lease liability at the lease commencement date. The right-of-use
asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease
payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of
costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is
located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement
date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the bank by the
end of the lease term or the cost of the right-of use asset reflects that the bank will exercise a purchase option.
In that case the right-of-use asset will be depreciated over the useful life of the underlying asset, which is
determined on the same basis as those of property and equipment. In addition, the right-of-use asset is
periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily
determined, the bank’s incremental borrowing rate. Generally, the bank uses its incremental borrowing rate as
the discount rate.
The Bank determines its incremental borrowing rate by obtaining interest rates from various external financing
sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased.

Lease payments included in the measurement of the lease liability comprise the following:

fixed payments, including in-substance fixed payments

variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the
commencement date;
amounts expected to be payable under a residual value guarantee; and
the exercise price under a purchase option that the bank is reasonably certain to exercise, lease payments in an
optional renewal period if the bank is reasonably certain to exercise an extension option, and penalties for early
termination of a lease unless the bank is reasonably certain not to terminate early.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there
is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group’s
estimate of the amount expected to be payable under a residual value guarantee, if the bank changes its
assessment of whether it will exercise a purchase, extension or termination option or if there is a revised
in-substance fixed lease payment.
When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount
of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been
reduced to zero.
The bank has elected not to recognise right-of-use assets and lease liabilities for leases of short-term.

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192 Annual Report 2023
2.2.2 Basis of consolidation
The consolidated financial statements include the financial statements of Midland Bank PLC. Islami Banking
Windows (IBW) and Off-shore Banking Unit (OBU) have been prepared as at and for the year ended on 31
December 2023. The consolidated financial statements have been prepared in accordance with IFRS 10
Consolidated Financial Statements.

2.2.3 a) Foreign currencies translation

Foreign currency transactions are converted into equivalent BDT using the prevailing exchange rates on the
dates of respective transactions as per IAS 21 “The Effects of Changes in Foreign Exchange Rates". Foreign
currency balances held in US Dollar are converted into BDT at weighted average rate of inter-bank market as
published by Bangladesh Bank on the closing date of every month. Balances held in foreign currencies other
than US Dollar are converted into equivalent US Dollar at buying rates of New York closing of the previous day
and converted into BDT equivalent.
Differences arising through buying and selling transactions of foreign currencies on different dates of the year
have been adjusted by debiting /crediting exchange gain or loss account.

b) Commitments
Commitments for outstanding forward foreign exchange contracts disclosed in these financial statements are
translated at contracted rates. Contingent liabilities/commitments for letters of credit and letters of guarantee
denominated in foreign currencies are expressed in BDT terms at the rates of exchange prevailing on the
balance sheet date.

c) Translation gain and loss

The resulting exchange transaction gains and losses are included in the profit and loss account.

2.2.4 Cash and cash equivalents

Cash and cash equivalents include notes and coins in hand, unrestricted balances held with Bangladesh Bank
and highly liquid financial assets which are subject to insignificant risk of changes in their fair value, and are used
by the Bank management for its short-term commitments.

2.2.5 Loans and advances

a) Loans and advances/investments of conventional banking/islamic banking branches are non-derivative
financial assets with fixed or determinable payments that are not quoted in an active market and that the Bank
does not sell in the normal course of business. Loans and advances/investment are stated in the balance sheet
on gross basis.

b) Loans and advances/investments are broadly catagorized under the heads of continuous, demand, term and
short term agriculture and micro credit. Continuous and demand loans/investments are accounted under
capitalized method, where interest/profit accrues on daily basis and applied to loan account quarterly, except
equal monthly installment (EMI) loan/investment of which interest/profit are being charged on due date and
interest/profit of staff loan/investment are being charged to staff loan/investment account yearly. Interest/profit
on classified loans and advances/investments is kept in suspense account as per guideline of Bangladesh Bank
and such interest/profit is not accounted for as income until realized from borrowers (note #13.06). Interest/profit
is not charged on bad and loss loans/investments as per guidelines of Bangladesh Bank. On the basis of
recovery, the unapplied interest/profit on such bad & loss loans/investments are being charged to the
respective loans/investments account and credited to the income account.

c) Commission and discounts on bills purchased and discounted are recognized at the time of realization.

d) At each balance sheet date and periodically throughout the year, the Bank reviews loans and advances to
assess whether objective evidence that impairment of a loan or portfolio of loans has arisen supporting a change
in the classification of loans and advances, which may result in a change in the provision required in accordance
with BRPD circular no. 53 (30 December 2021), BRPD circular no. 52 (29 December 2021), BRPD circular no. 51 (29
December 2021), BRPD Letter # BRPD (CRS-2)/901/(2)/2022-271, Dated 27 January 2021), BRPD circular no. 50
(14 December 2021), BRPD circular no. 45 (04 October 2021), BRPD circular no. 19 (26 August 2021), BRPD circular
no. 13 (27 June 2021), BRPD circular no. 05 (24 March 2021), BRPD circular no. 03 (31 January 2021), BRPD circular
no. 56 (10 December 2020), BRPD circular no. 52 (20 October 2020), BRPD circular no. 16 (21 July 2020), BRPD circular
no. 03 (21 April 2019), BRPD circular no.1 (20 February 2018), BRPD circular no.15 (27 September 2017), circular

Financial Statements
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193 Annual Report 2023
 no.16 (18 November 2014), BRPD circular no. 05 (29 May 2013), BRPD circular no. 19 (27 December 2012) and
BRPD circular no.14 (23 September 2012). The guidance in the circular follows a formulaic approach whereby
specified rates are applied to the various categories of loans as defined in the circular. The provisioning rates are
as follows:
Provision
Types of loans and advances
STD SMA SS DF BL
Consumer:
1.00% -
House building and professional 1.00%-2.00% 20% 50% 100%
2.00%
Other than housing finance & 2.00% -
2.00%-5.00% 20% 50% 100%
professionals to setup business 5.00%
Provision for loan to broker house,
2% 2% 20% 50% 100%
merchant banks, stock dealers, etc.
Short-term Agri-credit and micro credit 1% 1% 5% 5% 100%
Small and medium enterprise finance 0.25% 0.25% 20% 50% 100%
Others 1% 1% 20% 50% 100%
Special General Provision COVID-19
On unclassified general loans and
advances, including SMA of which are
enjoying deferring classification 1%-2% 1%-2% N/A N/A N/A
irrespective of repayment performance
until 31 December 2023)

e) BRPD Circular no.14 dated 23 September 2012 as amended by BRPD Circular no.19 dated 27 December 2012
also provides scope for further provisioning based on qualitative judgments. In these circumstances, impairment
losses are calculated on individual loans/investments considered individually significant based on which specific
provisions are raised. If the specific provisions assessed under the qualitative methodology are higher than the
specific provisions assessed under the prescribed approach above, the higher of the two is recognised in
liabilities under “Provision for loans and advances/investments” with any movement in the provision
charged/released in the profit and loss account. Classified loans/investments are categorized into sub-standard,
doubtful and bad/loss based on the criteria stipulated by Bangladesh Bank guideline.
f) Loans and advances/investments are written off to the extent that- (i) there is no realistic prospect of recovery,
and (ii) against which legal cases are filed, where required and classified as Bad/Loss as per as per BRPD circular
no.02 dated 13 January 2003, BRPD circular no.13 dated 07 November 2013 and BRPD circular no.01 dated 06
February 2019 of Bangladesh Bank.
g) These written off loans/investments however will not undermine/affect the claim amount against the
borrower. Detailed memorandum records for all such written off accounts are maintained and followed up. In
2023, BDT 75.90 million was written off .
h) Special general provision COVID-19
Considering the impact of COVID 19 pandemic in the overall economy of Bangladesh, the central bank has given
deferral benefits for classification of loans and advances/investments irrespective of their repayment
performance until end of December 2020 and December 2021 by issuing BRPD circular no.4, dated 19.03.2020,
BRPD circular no.15, dated 15.06.2020, BRPD circular no.17, dated 28.09.2020 and BRPD circular no.19, dated
26.08.2021, BRPD circular no.51, dated 29.12.2021 and BRPD circular no.53, dated 30.12.2021.

To strengthen the financial based and shock absorbing capacity of Banks, the Bangladesh Bank issued BRPD
circular # 56, dated 10.12.2020 and BRPD circular # 52, dated 29.12.2021 instructing all Banks to keep 1.00%,
1.50% and 2.00% special general provision on unclassified general loans and advances/investments, including
SMA of which are enjoying deferring classification benefits irrespective of their repayment performance until 31
December 2020 and 2021. This provision has to keep under the head of “Special General Provision COVIS-19”
and it cannot be released or accounted into income until further instruction issue by Bangladesh Bank. However,
if any Loans/Investments fully adjusted by recovering cash, in that case, such provision of interest/profit will be
transferred to income a/c (BRPD circular no.50, dated 14.12.2020, BRPD Letter no.56/20 and BRPD circular no.53,
dated 30.12.2021.). To comply with the circular, MDB has maintained an amount of BDT 112.32 million as of 31
December 2023 (note # 13.02).

Financial Statements
Midland Bank PLC.
194 Annual Report 2023
 i) Required provision for Loans and Advances/Investments
As per Bangladesh Bank circular issued time to time, a general provision at 0.25% to 5% has to maintain under
different categories of unclassified loan and advances/investments (Standard/SMA/off-balance sheet
exposures, etc.) as stated above. However, such general provision cannot satisfy the conditions imposed by IAS
37 “Provisions, Contingent Liabilities and Contingent Assets” and IFRS-9 “Financial Instruments”. At the year end
on 31 December 2023, the Bank has maintained an amount of BDT 1,943.36 million and has shown in the face
of balance sheet under the head “Other Liabilities” as against BDT 1,858.36 million of regulatory requirements
(note # 7.09).

2.2.6 Staff loan

House building and car loan are provided to the permanent staff at a subsidised rate. Criteria and detail of type
wise staff loan are given below:

i) House building loan

A permanent staff completing 5 years of service can avail house building loan subject to getting approval from
Managing Director & CEO and recommended by the concerned divisional head.

ii) Car loan

All permanent staff from AVP can avail car loan subject to getting approval from Managing Director & CEO and
recommended by the concerned divisional head.

2.2.7 Investment
All investments (other than government treasury securities) are initially recognised at cost including acquisition
charges associated with the investment. Premiums are amortised and discount accredited using the effective
or historical yield method. Accounting treatment of government treasury bills and bonds (categorised as HFT
and HTM) are made in accordance with Bangladesh Bank DOS Circular letter no. 05, dated 26 May 2008 and
subsequent clarifications DOS Circular letter no. 05 dated 28 January 2009.

Valuation methods of investment used are:

a) Held To Maturity (HTM)
Investments which have 'fixed or determinable payments', and are intended to be 'held to maturity', other than
those that meet the definition of 'held at amortized cost-others' are classified as held to maturity. Initially these
investments are recorded at cost. Subsequently, at each year end, these investments are measured at
amortized cost. Any increase or decrease in the value of such investment is recognized in shareholders’ equity
and profit and loss account respectively. Investment (HTM) is shown in the financial statements (note # 6.00).

b) Held For Trading (HFT)

Investments classified in this category are acquired principally for the purpose of selling or repurchasing in
short trading, or if designated as such by the management. After initial recognition at cost, investments are
revalued at Mark to Market (MTM) on weekly basis and any increase on such valuation is recognized as
valuation gain under the shareholders’ equity and any loss is recognized in the profit and loss account.

c) REPO and Reverse REPO

"Securities purchased under re-sale agreements are treated as collateralized lending and recorded at the
consideration paid and interest accrued thereon. The difference between purchase price and re-sale price is
treated as interest received and accrued evenly over the life of REPO agreement.

Since 1 September 2010 transaction of REPO and Reverse REPO are recorded based on DOS circular # 06,
dated July 15, 2010 of Bangladesh Bank. Securities under REPO will be excluded from the investment portfolio
and hence will not be eligible for SLR purpose. Securities acquired under reverse REPO will be eligible for SLR
purpose, initially at its clean price (in case of coupon bearing security) or at market value (in case of non-coupon
bearing security).

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195 Annual Report 2023
 Value of investments has been calculated as follows:
Items Applicable accounting value
Government treasury bills-HTM Amortized value
Government treasury bills-HFT Market value
Government treasury bonds-HTM Amortized value
Government treasury bonds-HFT Market value
Prize Bond At cost
Debenture At cost

d) Investment in Listed / Quoted Securities

These securities are bought and held primarily for the purpose of selling them in future or hold for dividend
income. These are reported at cost. Unrealized gains are not recognized in the profit and loss account. But
provision for diminution in value of investment is provided in the financial statements where market price is
below the cost price of investment as per Bangladesh Bank guidelines (note # 6.02 & Annexure B).

e) Investment in Unquoted Securities"

Investment in unlisted securities is reported at cost under cost method. Adjustment is given for any shortage of
net assets value (NAV) over cost in the profit and loss account, but no unrealized gain booking in the income
account (note # 6.02).
Value of investments has been calculated as follows:
Initial Measurement after initial
Investment class Recording of changes
recognition recognition
Government treasury Increase in value of such investments is
securities - Held to Cost Amortised cost booked to equity, decrease to profit and
Maturity (HTM) loss account.

Government treasury Loss to Profit and Loss account, gain to

securities - Held for Cost Fair value Revaluation Reserve through Profit and
Trading (HFT) Loss account.
Debenture/Bond Face value Face value None
Loss (net off gain) to profit and loss
Lower of cost or market value
Shares (Quoted) * Cost account but no unrealised gain booking
(overall portfolio)
in profit & loss a/c.

Lower of cost or Net Asset Loss to profit and loss account but no
Shares (Unquoted)* Cost
Value (NAV) unrealised gain booking.

Prize bond Cost Cost None

* Provision for shares against unrealised loss (gain net off) has been taken into account according to DOS circular
no.4, dated 24 November 2011 and for mutual funds (closed-end) as per DOS circular letter no.3, dated 12 March
2015 and for mutual funds (open-end) as per DOS circular letter no.10, dated 28 June 2015 of Bangladesh Bank.
f) Investment in Subsidiary
Investment in subsidiary is accounted for under cost method of accounting in the Bank’s financial statements in
accordance with IFRS 10 (Consolidated Financial Statements). Accordingly, investments in subsidiaries are stated in the
Bank’s balance sheet at cost, less impairment loss, if any. MDB has no subsidiary company as of December 31, 2023.

2.2.8 Property, plant and equipment

As per IAS-16 “Property and Equipment’’ items of fixed assets excluding land are measured at cost less
accumulated depreciation and accumulated impairment losses, if any. Land and building are carried at cost.
Purchase of software that is integral to the related equipment is capitalised as part of that equipment. Cost
includes expenditure that are directly attributable to the acquisition of asset and bringing to the location and
condition necessary for it to be capable of operating in the intended manner. When significant parts of an item
of fixed asset have different useful lives, they are accounted for as separate items (major components) of fixed
assets. The Bank has no land and building during the reporting period.

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196 Annual Report 2023
 The gain or loss on disposal of an item of fixed asset is determined by comparing the proceeds from disposal
with the carrying amount of the item of fixed asset, and is recognised in other income/ expenses in profit and
loss account.
i) Subsequent costs
The cost of replacing a component of an item of fixed asset is recognised in the carrying amount of the item if it
is probable that the future economic benefits embodied within the part will flow to the group and its cost can be
measured reliably. The carrying amount of the replaced parts is derecognised. The costs of the day to day
servicing of fixed assets are recognised in the profit and loss statement as incurred.

ii) Depreciation
Depreciation on fixed assets is recognised in the profit and loss statement on straight line method over its
estimated useful lives. In case of acquisition of fixed assets, depreciation is charged from the month of
acquisition, whereas depreciation on disposed off fixed assets are charged up to the month prior to the disposal.
Asset category wise depreciation rates for the current and comparative periods are as follows:
Category of fixed assets Method Rate (%)
Land N/A -
Building N/A -
Furniture and fixtures Straight Line 10%
Office equipments Straight Line 20%
Library books Straight Line 20%
Vehicles Straight Line 20%
Intangible assets (Software) Straight Line 20%
Computer and peripherals Straight Line 20%
Interior decoration Straight Line 10%
Category of fixed assets (ATM Assets):
Furniture and fixtures Straight Line 10%
Office equipment Straight Line 20%
2.2.9 Non- banking assets
Non-banking assets were acquired by the entity due to failure of borrowers to repay the loan in time taken
against mortgaged property. The Bank was awarded absolute ownership on few mortgaged properties (mostly
land) through the verdict of honourable court under the Artharin Adalat Act 2003. The value of the properties
has been recognised in the financial statements as non-earning assets on the basis of third party valuation
report and presented in the financial statements of the bank as per BRPD Circular # 22, dated 20 September
2021. Details are shown in note # 10.

2.2.10 Intangible assets

a) An intangible asset is recognized if it is probable that the future economic benefits that are attributable to the
asset will flow to the entity and the cost of the assets can be measured reliably (IAS 38).

b) Software represents the value of computer application software licensed for use of the Bank, other than
software applied to the operation software system of computers. Intangible assets are carried at its cost, less
accumulated amortization/depreciation and any impairment losses. Initial cost comprises license fees paid at
the time of purchase and other directly attributable expenditures that are incurred in customizing the software
for its intended use.

c) Expenditure incurred on software is capitalized only when it enhances and extends the economic benefits of
computer software beyond their original specifications and lives and such cost is recognized as capital
improvement and added to the original cost of software.

d) Software is amortized using the straight line method over the estimated useful life of 5 (five) years
commencing from the date of the application software is available for use over the best estimate of its useful
economic life.
2.2.11 Impairment of assets
The carrying amounts of Bank’s assets are reviewed at each balance sheet date to determine whether there is
any indication of impairment. Any impairment loss is recognized in the profit and loss account, if the carrying

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Midland Bank PLC.
197 Annual Report 2023
 amount of an asset exceeds its recoverable amount (IAS-36). An amount of BDT 11,289 has been impaired and
charged to profit and loss account during the financial year 2023 as per para 60 of IAS-36 “Impairment of assets”.

2.2.12 Investment properties

a) Investment property is held to earn rentals or for capital appreciation or both and the future economic benefits
that is associated with the investment property, but not sale in the ordinary course of business.

b) Investment property is accounted for under cost model in the financial statements. Accordingly, after
recognition as an asset, the property is carried at its cost, less accumulated depreciation and impairment loss.

c) Depreciation is provided on a reducing basis over the estimated life of the class of asset from the date of
purchase up to the date of disposal (IAS 16).

2.2.13 Other assets

Other assets include mainly advance office rent, payment of advance income tax for which assessment of tax
has not been finalizes yet and all other financial assets, fees and other unrealized income receivable advance for
operating and capital expenditures and stocks of stationery and stamps, etc.

Provision on other assets

As per BRPD circular no.04 dated 12 April 2022, a provision of 100% on other assets which are outstanding for
one year and above. The Bank maintains provisions in line with this circular unless it assesses there is no doubt
of recovery on items of other assets in which case no provision is kept (note # 13.04).

2.2.14 Receivables
Receivables are recognised when there is a contractual right to receive cash or another financial asset from
another entity.

2.2.15 Inventories
Inventories measured at the lower of cost and net realizable value as per IAS 2 “Inventories”.

2.2.16 Leases
IFRS 16 Leases is effective for the annual reporting periods beginning on or after 1 January 2019. IFRS 16 defines
that a contract is (or contains) a lease if the contract conveys the right to control the use of an identified asset
for a period of time in exchange for consideration. IFRS 16 significantly changes how a lessee accounts for
operating leases. Under previous IAS 17, an entity would rent an office building or a branch premises for several
years with such a rental agreement being classified as operating lease would have been considered as an off
balance sheet item. However, IFRS 16 does not require a lease classification test and hence all leases shall be
accounted for as on balance sheet item (except for some limited exception i.e. short-term lease, leases for low
value items).

Under IFRS 16, an entity shall be recognizing a right-of-use (ROU) asset (i.e. the right to use the office building,
branches, service center, call center, warehouse, etc.) and a corresponding lease liability. The asset and the
liability are initially measured at the present value of unavoidable lease payments. The depreciation of the lease
asset (ROU) and the interest on the lease liability is recognized in the profit or loss account over the lease term
replacing the previous heading ‘lease rent expenses’.

While implementing IFRS 16, the Bank observed that IFRS 16 is expected to have impact on various regulatory
capital and liquidity ratios as well as other statutory requirements issued by various regulators. In addition, there
are no direction from National Board of Revenue (NBR) regarding treatment of lease rent, depreciation on ROU
assets and interest on lease liability for income tax purposes and applicability of VAT on such items. Finally,
paragraph 5 of IFRS 16 provide the recognition exemptions to short-term leases and leases for which the
underlying asset is of low value. Although, paragraphs B3 to B8 of the Application Guidance (Appendix B) of IFRS
16 provide some qualitative guidance on low value asset, but these guidance is focused towards moveable asset
and immovable asset like rental of premises (i.e. real estate) is not covered on those guidance, nor any
benchmark on quantification guidance on low value items have been agreed locally in Bangladesh.

Nevertheless, as first step the Bank has defined 'low value asset' which are to be excluded from IFRS 16
requirement and considered lease of 'ATM Booths and other installations' as low value asset. Thereafter, the
Bank has reviewed lease arrangements for 'office premises' for consideration under IFRS 16.

Financial Statements
Midland Bank PLC.
198 Annual Report 2023
 As per the preliminary assessment of leases for office premises, the Bank has concluded that the potential
impact of these lease items in the Balance Sheet and Profit and Loss Account of the Bank is not considered to
be material. Therefore, considering the above implementation issues the Bank has not taken IFRS 16
adjustments on the basis of overall materiality as specified in the materiality guidance in the Conceptual
Framework for Financial Reporting and in International Accounting Standard 1 Presentation of Financial
Statements. However, the Bank would continue to liaison with regulators and related stakeholders as well as
observe the market practice for uniformity and comparability, and take necessary action in line with any guideline
and market practice.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and
rewards of ownership to the lessee as per IAS-17 “Leases". All other leases are classified as operating leases as
per IAS 17 Leases.
a) Bank as Lessor
Amount due from lessees under the finance leases are recorded as receivables at the amount of the Bank’s net
investment in the leases. Finance lease income is allocated to accounting periods as to reflect a constant
periodic rate of return on the Bank’s net investment outstanding in respect of the leases.
b) Bank as Lessee
Assets held under finance leases are recognised as assets of the Bank at their fair value at the date of acquisition
or, if lower, at the present value of the minimum lease payment. Assets held under finance leases are depreciated
over their expected useful lives on the same basis as owned assets. The Bank has no finance lease or operating
lease during the reporting period 2023.
c) Impact of adopting IFRS-16
The following summarises the impact of adopting IFRS-16 on the Bank's balance sheet and profit & loss account
for the period then ended on 31 December 2023, for each of the line items affected. Impact for implementation
of IFRS-16 is deputed below. Amount without adoption of IFRS 16 + Adjustment for IFRS 16= Amount after
implementation of IFRS-16
d) Impact on the balance sheet as on 31 December 2023 In BDT Million
Amount of Amount after
Amount before
Adjustment implementation
Particulars adoption of
for of
IFRS-16
IFRS-16 IFRS-16
Fixed Assets 301 310 611
Other Assets 4,320 (82) 4,238
Other Liabilities 7,313 265 7,578

e) Impact on the profit and loss account as on 31 December 2023

In BDT Million
Amount of Amount after
Amount before
Adjustment implementation
Particulars adoption of
for of
IFRS-16
IFRS-16 IFRS-16
Interest/Profit paid on Deposit and Borrowing, etc. 3,725 16 3,741
Rent, tax, insurance, electricity, etc. 279 (173) 106
Depreciation/amortization and repairs of Bank’s 134 157 291

2.2.17 Reconciliation of inter-bank and inter-branch accounts

Accounts with regard to inter-bank (in Bangladesh and outside Bangladesh) are reconciled regularly and there
is no differences which may affect the financial statements significantly. Un-reconciled entries/balances in the
case of inter-branch transactions as on the reporting date are not material.

2.3 Capital/Shareholder’s equity

2.3.1 Share capital

Ordinary shares are classified as equity when there is no contractual obligation to transfer cash or other financial
assets.
a) Authorised capital
Authorized capital is the maximum amount of share capital that the Bank is authorized by its Memorandum an

Financial Statements
Midland Bank PLC.
199 Annual Report 2023
 Article of Association to issue to the shareholders. Authorized capital of the Bank as on 31 December 2023 was
at BDT 10,000 million (Note # 15.01).

b) Paid up capital
Paid-up capital represents total amount of shareholders’ capital that has been paid in full by the ordinary
shareholders. Ordinary shareholders are entitled to receive dividends as declared time to time and are entitled
to vote at shareholders’ meetings. In the event of a winding-up of the Bank, ordinary shareholders rank after all
other shareholders and creditors and are fully entitled to any residual proceeds of liquidation. Paid up capital
increased by BDT 700 million to BDT 6,396.70 million as on 31 December 2023 from BDT 5,696.70 million as on
31 December 2022, as the bank injected BDT 700 million through IPO for the FY 2023 (note # 15.02).

2.3.2 Statutory reserve

"Statutory reserve has been maintained @ 20% of profit before tax in accordance with the provision of section
24 of the Bank Company Act 1991 (Amendment upto 2023) until such reserve along with share premium equal to
its paid up capital. Statutory reserve of the Bank as on 31 December 2023 was at BDT 1,881.76 million, against BDT
1,626.33 million on 31 December 2022 (note # 16.00).

2.3.3 Revaluation reserve

When an asset's carrying amount is increased as a result of revaluation, the increase amount should be credited
directly to equity under the head of revaluation surplus / reserve as per IAS 16: Property, Plant and Equipment.
The tax effects on revaluation gain are measured and recognized in the financial statements as per IAS 12:
“Income Taxes”. During the financial year 2023, the Bank did not revalue of its any fixed asset.

2.3.4 Revaluation reserve on investment in securities

Revaluation reserve for government securities arises from the revaluation of treasury bills/bonds, Bangladesh
Bank bills and treasury bonds (HFT and HTM) in accordance with the DOS circular no. 5 dated 26 May 2008 and
DOS (SR) 1153/120/2010 dated 8 December 2010 (note # 17.00).

2.3.5 General reserve

The surplus amount after appropriation of yearly profit, surplus of tax and bonus provision of different years are
being kept in general reserved fund. There is no such reserve as on 31 December 2023.

2.3.6 Share premium

Share premium is the capital that the Bank raises upon issuing shares that is in excess of the nominal value of
the shares. The share premium may be applied by the Bank in paying up unissued shares to be allotted to
members as fully paid bonus shares or writing-off the preliminary expenses of the Bank or the expenses of or the
commission paid or discount allowed on, any issue of shares or debentures of the Bank or in providing for the
premium payable on the redemption of any redeemable preference shares or of any debentures of the Bank.
Share premium is showing in accounts after deduction of income tax on share premium as per finance Act.
During the year 2023, the Bank issued 70 million of ordinary shares at the face value of BDT 10 each to general
public through IPO in compliance with regulation.

2.3.7 Capital management

The Bank has a capital management process in place to measure, deploy and monitor its available capital and
assess its adequacy. This capital management process aims to achieve the following objectives:

i) To comply with the capital requirements set by the regulators;

ii) To safeguard the Bank's ability to continue as a going concern so that it can continue to provide returns for
shareholders and benefits for other stakeholders; and

iii) To maintain a strong capital base to support the development of its business.

Capital is managed in accordance with the Board approved Capital Management Planning. Senior management
develops the capital strategy and oversee the capital management planning of the Bank. The Bank's finance,
treasury and risk management divisions are key participators in implementing the Bank's capital strategy and
managing capital. Capital is managed using both regulatory capital measures and internal matrix.

Financial Statements
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200 Annual Report 2023
2.4 Liabilities and basis of their valuation

2.4.1 Borrowings from other banks, financial institutions and agents

Borrowed funds include call money deposits, borrowings, re-finance borrowings and other term borrowings from
banks, financial institutions and agents. Interest paid/payable on these borrowings is charged to the profit & loss
account. Disclosures of borrowings are shown in (note # 11.00, 13.00 and 22.02).

2.4.2 Deposits and other accounts

Deposits and other accounts include non-interest bearing current deposit payable at call, interest bearing
demand and short term deposits, savings deposit, fixed deposit and scheme deposit. These items are brought to
financial statements at the gross value of outstanding balance.

2.4.3 Other liabilities

Other liabilities comprise items such as provision for loans and advances/investments, provision for taxation,
interest payable, interest suspense, accrued expenses, lease obligation, etc. Other liabilities are recognised in the
balance sheet according to the guidelines of Bangladesh Bank, Income Tax Ordinance, 1984 and internal policy
of the Bank.

2.4.4 Provision for liabilities

As per IAS-37 Provisions, Contingent Liabilities and Contingent Assets are recognised when it is probable that an
outflow of economic benefits will be required to settle a current legal or constructive obligation as a result of past
events, and a reliable estimate can be made of the amount of the obligation.

2.4.5 Provision for Off-balance sheet exposure

As per BRPD circular no.14 (23 September 2012) the Bank has recognised 1% General Provision on the following
off balance sheet exposures as defined in BRPD circular no.10 (24 November 2002) considering the exemption
as provided through BRPD circular no.01 (03 January 2018), BRPD circular no.7 (21 June 2018), BRPD circular no.13
(18 October 2018), BRPD circular no.02 (25 February 2019), BRPD circular no.09 (27 May 2019) and BRPD circular
letter no. BPRD(P-1)/661/13/2019-354 (13 January 2020).

i) Acceptance and endorsements;

ii) Letters of guarantee;
iii) Irrevocable letters of credit; and
iv) Foreign exchange contracts

2.4.6 Provisions on balances with other banks and financial institutions (Nostro accounts)
Provision for unsettled transactions on nostro accounts is made as per Foreign Exchange Policy Department
(FEPD) circular no. FEPD (FEMO) / 01/2005-677 dated 13 September 2005 of Foreign Exchange Policy
Department (FEPD) of Bangladesh Bank and reviewed semi-annually by our management along with duly
certified by the external auditor. On the reporting date, the Bank has no unsettled transactions outstanding for
more than 3 months and no provision has been made in this regard.

2.4.7 Provision for rebate to good borrower

Previously commercial banks were required to maintain provision @10.0% of interest charged against loans to
good borrowers, identified on the basis of prescribed guidelines stated in BRPD Circular no. 06 (19 March 2015)
and BRPD Circular Letter no 03 (16 February 2016) for onward rebate to the recognized good borrowers.
However, Bangladesh Bank during 2020 issued another circular (BRPD Circular No. 14 dated 18 June 2020),
wherein it is mentioned that from 2020 banks need not to provide any rebate to good borrowers. Hence, no
further good borrowers’ provision was accounted for in the financials.

2.4.8 Provision for current tax

Current tax is the amount of income tax payable (recoverable) in respect of the taxable profit (tax loss) for a
period. Provision for current income tax has been made as per prescribed rate in the Income Tax Ordinance 1984
and latest Finance Act and related SROs on the accounting profit made by the Bank after considering some of
the add-backs to income and disallowances of expenditure as per income tax laws with IAS-12 “Income Taxes”.
Tax Assets under the head of Other Assets are recognized for payment of advance income tax, tax deducted at
source and tax paid at the time of IT Return for the year (s) for which assessment has not been yet finalized. On
the other hand, the tax provision (estimated as per IAS-12, provision of latest Finance Act, related SROs/
Guidelines, etc., issued by National Board of Revenue-NBR) are recognized as tax liability under the head of other
liability for the year (s) for which assessment has not been yet finalized. During the year an amount of current tax
stood at BDT 690.11 million in 2023, against BDT 544.23 million in 2022 (note # 13.05).

Financial Statements
Midland Bank PLC.
201 Annual Report 2023
2.4.9 Deferred tax
Deferred tax liabilities are the amount of income taxes payable in future periods in respect of taxable temporary
differences. Deferred tax assets are the amount of income tax recoverable in future periods in respect of
deductible temporary differences. Deferred tax assets and liabilities are recognized for the future tax
consequences of timing differences arising between the carrying values of assets, liabilities, income and
expenditure and their respective tax bases. Deferred tax assets & liabilities are measured using tax rate & tax
laws enacted or substantially enacted at the balance sheet date. Tax impact on the account of changes in
deferred tax assets and liabilities has also been recognized in the profit and loss account as per IAS 12 “Income
Taxes” and in line with BRPD circular no.11 dated December 12, 2011. During the year, an amount of deferred tax
income stood at BDT 546.02 million against BDT 17.57 million in 2022 (note # 9.06).

2.4.10 Contingent asset and contingent liability

A contingent asset is possible asset that arises from past events and whose existence will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events and on the other hand a contingent
liability is a possible obligation that arises from past events and whose existence will also be confirmed only the
occurrence or non-occurrence of one or more uncertain future events. Contingent asset and liability are not
recognized rather disclosed in the financial statements as per IAS 37.

2.5 Benefits to the employees

The retirement benefits accrued for the employees of the Bank as on reporting date have been accounted for in
accordance with the provisions of IAS 19, "Employee Benefit". Bases of computing the retirement benefit
schemes operated by the Bank are outlined below:

2.5.1 Provident fund

Provident Fund (PF) benefits are given to the permanent members of PF of the Bank in accordance with Bank's
Service Rules. Accordingly, a Trust Deed and Provident Fund Rules were prepared and obtained approval from
the Commissioner of Income Tax as a recognized provident fund within the meaning of section 2(52), read with
the provisions of part B of the First Schedule of Income Tax Ordinance 1984. The Fund is operated by a Board of
Trustees consisting six members of the Bank (03 members from the Board of Directors and 03 members from
Management). All confirmed employees of the Bank are contributing 10% of their basic salary as subscription to
the Fund. The Bank also contributes equal amount of the employees' contribution. Interest earned from the
investments is credited to the members' individual account on yearly basis as per audited financial statements
of the Fund. The Fund has been maintaining in a separate account which is operating by the Trustee and is being
audited by Arun & Co. Chartered Accountants and submit to the NBR to comply with regulation.

2.5.2 Gratuity fund

The Bank operates a Gratuity Fund Scheme on Continuing Fund Basis, in respect of which provision is made
annually which is covering all its eligible employees in accordance with Bank’s Service Rules. The Bank prepared
the Trust Deed and Gratuity Fund Rules and get approval from the Commissioner of Income Tax as a
recognized Gratuity Fund within the meaning of Para 2,3 and 4, read with the provisions of Part C of the First
Schedule of Income Tax Ordinance 1984. The Fund is operated by a Board of Trustees consisting six members
of the Bank (03 members from the Board of Directors and 03 members from management). Valuation of
Gratuity Fund Scheme has been made to assess the adequacy of the liabilities provided for the scheme as per
IAS 19 “Employees Benefit". The Fund has been maintaining in a separate account which is operating by the
Trustee and is being audited by Arun & Co. Chartered Accountants and submit to the NBR to comply with
regulation.

2.5.3 Employees’ Social Security Superannuation Fund (ESSSF)

Midland Bank Employees' Social Security Superannuation Fund is subscribed by monthly contribution of the
employees. The Bank also contributes to the fund in accordance with Bank Service Rules. The fund has been
established to provide medical support and coverage in the event of accidental death or permanent disabilities
of the employees. Retirement benefits are also provided from this fund. The Fund has been maintaining in a
separate account which is operating by the Trustee and is being audited by Arun & Co. Chartered Accountants.

2.5.4 Performance bonus

The Bank is giving performance/incentive bonus to the employees in every year. This bonus is not mandatory,
but is being paying based on the performance of the bank in respective year. This bonus amount is being
distributed among the employees based on their performance after approval of audited financials of the Bank.

Financial Statements
Midland Bank PLC.
202 Annual Report 2023
2.5.5 Worker’s Profit Participation Fund
Provision of Workers' Profit Participation Fund and Welfare Fund mentioned in Bangladesh Labour
(Amendments) Act, 2013 contradicts Bank Company Act, 1991 through which Bank Companies are regulated.
Section-11 of Bank Company Act, 1991 restricts to employ anyone who receives remuneration or part of
remuneration as share of profit of the company and remuneration includes salary and other benefit. As per legal
expert’s opinion, wherein it is opined that Worker’s Profit Participation and Welfare Fund shall not be applicable
for Bank Companies, as there is no non-obstante clause. Unless Government of Peoples Republic of Bangladesh
amends section 11 of Bank Company Act or frames rules, giving overriding effect to Bank Company Act, 1991,
section 232 of Bangladesh Labour (Amendments) Act, 2013 will not be applicable for banks. Moreover, in the
Bank, performance bonus provision is there, which is distributed among the employees on the basis of individual
employee’s yearly performance with a view to recognize welfare of the employees and reward their participation
and contribution to the company.

2.6 Revenue recognition

In terms of provisions of IFRS 15 "Revenue from Contracts with Customers", the revenues during the year are
recognized as following:

2.6.1 Interest Income

Interest income on unclassified loan and advances (Standard & SMA) is recognised on an accrual basis and
charged to respective loan account on quarterly. Interest income on classified loan and advances (SS & DF only)
is credited to interest suspense account with actual receipt of interest therefrom credited to income as and when
received as per instruction contained in BRPD circular no.14 dated 23 September 2012, BRPD circular no.19 dated
27 December 2012 and BRPD circular no.16, dated 18 November 2014. If the Loans and advances classified as
Bad/Loss (BL) interest ceases to apply and recorded in a memorandum a/c. When any Bad loan turns into
unclassified a/c, then unapplied interest charged to respective loan a/c and credited to profit & loss a/c in
compliance with regulatory guideline.

2.6.2 Profit on investment (Islamic Banking Window)

Mark-up on investment is taken into income account proportionately from profit receivable account. Overdue
charge/compensation on classified investments are transferred to profit suspense account instead of income
account.

2.6.3 Investment Income

Income on investments are recognised on accrual basis. Investment income includes discount on treasury bills
and Bangladesh Bank bills, interest on treasury bonds and fixed deposit with other banks. Capital gain on
investments in shares are also included in investment income. Capital gain is recognised when it is realised.

2.6.4 Fees and commission income

The Bank earns commission and fee income from a diverse range of service provided to its customers.
Commission and fee income is accounted for as follows:
i) Income earned on the execution of a significant act is recognised as revenue when the act is completed.
ii) Income earned from services provided is recognised as revenue when the services are provided
iii) Commission charged to customers on letters of credit and letters of guarantee are credited to income at the
time of effecting the transactions.
iv) Commission and discount on bills purchased and discounted are recognized at the time of realization.

2.6.5 Dividend income

Dividend income is recognised when the right to receive the income is established. Dividend income is
recognized at the time when it is realized. Dividend income on preference shares is recognized on accrual basis.
Dividend incomes are presented under investment income (note # 23.00).

2.7 Interest paid and other expenses

In terms of the provisions of IAS 1 "Presentation of Financial Statements” interest and other expenses are
recognized on accrual basis.

2.7.1 Interest paid on borrowing and other deposits (Conventional banking)

Interest paid and other expenses are recognised on accrual basis

2.7.2 Profit shared on deposits (Islamic banking)

Profit paid to mudaraba deposits is recognised on accrual basis according to Income Sharing Ratio (ISR).

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203 Annual Report 2023
2.7.3 Other operating expenses
All other operating expenses are provided for in the books of the account on accrual basis according to the IAS
1 “Presentation of Financial Statements”.

2.7.4 Dividend payments

Interim dividend is recognized when they are paid to shareholders. Final dividend is recognized when it is
approved by the shareholders in the Annual General Meeting (AGM). The proposed dividend has not been
recognized as a liability in the balance sheet in accordance with the IAS 10 “Events after the Reporting Period”.

Dividend payable to the shareholders is recognized as a liability and deducted from the shareholders' equity in
the period in which the shareholders' right to receive the payment is established.

2.7.5 Foreign exchange gain/loss

Exchange income includes all gain and losses from foreign currency day to day transactions, conversions and
revaluation of non-monetary items.

2.8 Earnings per share (EPS)

The company calculates earnings per share (EPS) in accordance with IAS 33 “Earnings per Share (EPS)” which
has been shown on the face of Profit and Loss Account. The EPS has been calculated by dividing the net profit
after tax by the total number of ordinary shares outstanding at the end of the reporting year. Details are shown
in note # 40.00 to the financial statements.

2.8.1 Basic earnings per share

This represents earnings for the year attributable to ordinary shareholders. Net profit after tax has been considered
as fully attributable to the ordinary shareholders. Basic earnings per share is calculated by dividing net profit after tax
by the total weighted average number of ordinary shares outstanding at end of the reporting year.

2.8.2 Weighted average number of ordinary shares

This represents the number of ordinary shares outstanding at the beginning of the year plus the number of
ordinary shares issued during the year. The basis of computation of number of shares is in line with the
provisions of IAS 33 “Earnings per share”. The logic behind this basis is, that the bonus shares are issued to the
existing shareholders without any consideration, and therefore, the number of shares outstanding is increased
without an increase in resources generating new earnings.

2.8.3 Diluted earnings per share

During the year 2023, the bank issued 70 million ordinary shares @ BDT 10 each (at far), therefore, number of
ordinary shares increased by 70 million to 639,669,753 Ordinary shares from 569,669,753 Ordinary shares in
2022. No diluted earnings per share are required to be calculated for the period 2023, as there was no element
or scope for dilution during the period under review. However, EPS is restated for the comparative years, if it
requires as per IAS 33 “Earnings per share (EPS)”.

2.9 Related party transactions

Parties are considered to be related, if one party has the ability directly or indirectly to control the other party or
exercise significant influence over the other party in making financial and operational decisions. Parties are also
considered to be related, if they are subject to common control or common significant influence. Related party
transaction is a transfer of resources, services or obligations between related parties, regardless of whether a price
is charged as per IAS 24 “Related Party Disclosures”, Bangladesh Bank and Bangladesh Securities & Exchange
Commission (BSEC) guidelines. Details of Related party transactions have been disclosed in (note # 44.00).

2.10 Credit rating

Credit Rating: Emerging Credit Rating Limited (ECRL) has been rated the Bank based on the audited financial
statements as of December 31, 2022 and other relevant quantitative as well as qualitative information up to
the-date-of rating declaration. They have been rated the Bank as A+ in the long term and ST-2 for the short term
and outlook is stable. The effective date of rating is till June 30, 2024.
Year Long term rating Short term rating Outlook
2022 (valid upto 30 June 2024) A+ ST 2 Stable

Financial Statements
Midland Bank PLC.
204 Annual Report 2023
 The rating reflects the strengths of the Bank which is backed by a strong team of management, growth in the
non-interest income, deposits and investments, adequate capital coverage with high Tier 1 capital, improved
asset quality and well controlled of liquidity position.

2.11 Directors' Responsibility on Financial Statements

The Board of Directors take the responsibility for preparation and presentation of these financial statements.
Details of Directors' report are given in annual report.

2.12 Memorandum items

Memorandum items are maintained to have control over all items of importance and for such transactions
where the Bank has only a business responsibility and no legal commitment. Bills for collection, savings
certificates, wage earners bonds and others fall under the memorandum items. However, Bills for Collection is
shown under contingent liabilities under the head of Off-balance Sheet Exposures as per Bangladesh Bank’s
reporting format.

2.13 Information about business and geographical segments

a) Business segments
Business segments report consists of products and services whose risk and returns are different from those of
other business segments.

b) Geographical Segments
Geographical segments report consists of products and services within a particular economic environment,
where risks and returns are different from those of other economic environments. Inter-segment transactions
are generally based on inter-branch fund transfer measures as determined by the management. Income,
expenses, assets and liabilities are specifically identified with individual segments.

2.14 Risk management

Interest Rate Risk :Interest rate risk may arise either from trading portfolio or from non-trading portfolio. The
trading portfolio of the Bank consists of Government treasury bills and bonds of different maturities as far as
Interest rate risk is concern. Interest rate risk arises from mismatches between the future yield of an asset and
their funding cost. Asset Liability Committee (ALCO) monitors the interest rate movement on a regular basis and
the Bank's Markets Treasury team actively manages the Balance Sheet gap to reduce the risk.

Equity Risk: Equity risk arises from movement in market value of equities held. The risks are monitored by Bank's
Treasury and FIs Division under a well designed policy framework.

Operational Risk: Operational risk is the risk of direct or indirect loss resulting a wide variety of causes
associated with the Bank’s processes, people, technology or infrastructure, or from external factors. Operational
risk is inherent in the Bank's activities and as with other risk types is managed through an overall framework with
checks and balances that include implementation of three line of defence, recognised ownership of the risk by
the businesses and independent risk management oversight.

The operational risk policy codifies the core governing principles for operational risk management and provides
a framework for operational risk. In accordance with the policy, each business area is responsible to identify its
key operational risks as well as the controls established to mitigate those risks and to ensure compliance with
laws, regulations, regulatory administrative actions and the Bank's policies. The Bank’s objective is to manage
operational risk so as to balance the avoidance of financial losses and damage to the reputation of the Bank’s
reputation with overall cost effectiveness and innovation. In all cases, the Bank’s policy requires compliance with
all applicable legal and regulatory requirements.

Operating Environment: The Bank’s operating environment during the year ended 2023 were impacted by a
number of major global events such as continuation of COVID 19 related disruptions, start of Russia-Ukraine
conflict, increase in fuel and commodity price, strengthening of USD, etc.. Most of these events also had
significant impact in the local economic environment affecting the Bank’s operation. From time to time, the
Government of Bangladesh and the local Central Bank (Bangladesh Bank) has issued various directives to
manage impacts from these events which the Bank has followed. Management on regular basis review and
monitor the global and country specific macro-economic situation and factor these issues into the decision
making process. However, the long-term effects of the current economic situation are difficult to predict and
management’s current expectations and estimates could differ from the actual results.

Financial Statements
Midland Bank PLC.
205 Annual Report 2023
2.15 Creation of ‘own Stat-up Fund’ by Scheduled Banks through transferring 1% of the annual net profit
Pursuant to the SMESPD Circular no 4 dated 29 March 2021, Section ‘Kha’, all scheduled banks in Bangladesh are
instructed to create own ‘start-up fund’ for disbursement of loan/Investment (for Islamic banks) to ‘start-up
entrepreneurs’. As per the subsequent amendment through SMESPD Circular no 5 dated 26 April 2021, for five
years from 2020 banks shall maintain start-up fund to disburse in favour of ‘Start-up entrepreneurs’ through
mandatory transfer of 1% net profit as per the audited financial statements. A new account heading named
‘start-up fund’ shall be created and disclosed in balance sheet under ‘other liabilities’.

No further instruction has been issued in relation to the accounting of transactions (i.e. disbursement from the
start-up fund and redemption of other liability). Until further instruction is received about the accounting of
start-up fund, the Bank has assigned the required amount (1% of net profit) for the use as ‘start-up fund’ and
subsequent disbursement to start-up entrepreneurs. This amount has been considered as appropriation
through transfer from profit and loss account and disclosed under other liability.

2.16 Compliance report of International Accounting Standards/ International Financial Reporting Standards (IFRSs)

The Financial Reporting Act 2015 (FRA) was enacted in 2015. Under the FRA, the Financial Reporting Council
(FRC) was formed in 2017 and has since then adopted International Accounting Standards (IASs) and
International Financial Reporting Standards (IFRSs) as the applicable Financial Reporting Standards for public
interest entities such as banks with effect from 2 November 2020. Accordingly, the financial statements of the
Bank continue to be prepared in accordance with International Financial Reporting Standards (IFRSs) and the
requirements of the Banking Companies Act, 1991 (amendment up to 2018), the rules and regulations issued by
Bangladesh Bank, the Companies Act, 1994. In case any requirement of the Banking Companies Act, 1991
(amendment up to 2018), and provisions and circulars issued by Bangladesh Bank differ with those of IFRSs, the
requirements of the Banking Companies Act, 1991 (amendment up to 2018), and provisions and circulars issued
by Bangladesh Bank shall prevail.

Name of the IAS / IFRS IAS Status of compliance

Presentation of Financial Statements IAS-1 Applied with some departure (note 2)
Inventories IAS-2 Not Applicable
Statement of Cash Flows IAS-7 Applied with some departure (note 2)
Accounting Policies, Changes in Accounting Estimates and Errors IAS-8 Applied
Events after the Reporting Period IAS-10 Applied
Construction Contracts IAS-11 Not Applicable
Income Taxes IAS-12 Applied
Property, Plant and Equipment IAS-16 Applied
Lease IAS-17 Applied
Revenue IAS-18 Applied
Employee Benefits IAS-19 Not Applicable
Accounting for Government Grants and Disclosure of Govt
IAS-20 Not Applicable
Assistance
The Effects of Changes in Foreign Exchange Rates IAS-21 Applied
Borrowing Costs IAS-23 Applied
Related Party Disclosures IAS-24 Applied
Accounting and Reporting by Retirement Benefit Plans IAS-26 Not Applicable
Separate Financial Statements IAS-27 Applied
Investments in Associates and Joint Venture IAS-28 Not Applicable
Financial Reporting for hyperinflationary economics IAS-29 Not Applicable
Interests in Joint Ventures IAS-31 Not Applicable
Financial Instruments: Presentation IAS-32 Applied with some departure (note 2)
Earnings per Share IAS-33 Applied
Interim Financial Reporting IAS-34 Applied
Impairment of Assets IAS-36 Applied
Provisions, Contingent Liabilities and Contingent Assets IAS-37 Applied with some departure (note 2)
Intangible Assets IAS-38 Applied
Financial Reporting: Recognition and measurement IAS-39 Applied with some departure (note 2)
Investment property IAS-40 Not Applicable
Agriculture IAS-41 Not Applicable

Financial Statements
Midland Bank PLC.
206 Annual Report 2023
 Name of the IAS / IFRS IFRS Status of compliance
International Financial Reporting Standards (IFRS):
First-time Adoption of Bangladesh Financial Reporting Standards IFRS 1 N/A
Share-based Payment IFRS 2 N/A
Business Combinations IFRS 3 N/A
Insurance Contracts IFRS 4 N/A
Non-current Assets Held for Sale and Discontinued Operations IFRS 5 N/A
Exploration for and Evaluation of Mineral Resources IFRS 6 N/A
Financial Instruments: Disclosures IFRS 7 Applied with some departure (note 2)
Operating Segments IFRS 8 Applied with some departure (note 2)
Financial Instruments IFRS 9 Applied with some departure (note 2)
Consolidated Financial Statements IFRS 10 N/A
Joint Arrangements IFRS 11 N/A
Disclosure of Interest in Other Entities IFRS 12 N/A
Fair Value Measurement IFRS 13 Applied with some departure (note 2)
Regulatory Deferral Accounts IFRS 14 N/A
Revenue from contractors with customers IFRS 15 Applied
Leases IFRS 16 Applied

In order to comply with certain specific rules and regulations of Bangladesh Bank which are different to IAS/IFRS,
some of the requirements specified in these IAS/IFRSs are not applied. Refer to note-2.1 for such recognition and
measurement differences that are most relevant and material to the Bank and the Group.
The Standard regards a retirement benefit plan as a reporting entity separate from the employers of the
participants in the plan. Therefore, it is not applicable for the Bank’s annual report as it is the employer and not
the retirement benefit plan itself.
The objective of IAS 34 is to prescribe the minimum content of an interim financial report and to prescribe the
principles for recognition and measurement in complete or condensed financial statements for an interim period
and hence it is not applicable for annual financial statements. However, the Bank being a listed entity in Dhaka
and Chittagong Stock Exchanges regularly publishes Interim Financial Report complying with IAS 34.

2.17 Standards issued but not yet effective

A number of new standards are effective for annual periods beginning after 1 January 2021 and earlier application
is permitted; however, the Bank has not early adopted the new or amended standards in preparing these
financial statements.
Effective date New standards or amendments
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 (Interest Rate Benchmark
January 01, 2021
Reform-2)
i) Amendments to IAS 37 (Onerous Contracts-Cost of Fulfilling a Contract)
ii) Amendments to IAS 16 (Property, Plant and Equipment: Proceeds before Intended Use)
January 01, 2021 iii) Amendments to IFRS 1, IFRS 9, illustrative examples accompanying IFRS 16 and IAS 41
(Annual improvements to IFRS Standards 2018-2020)
iv) Amendments to IFRS 3 (Reference to Conceptual Framework)
i) Amendments to IAS 1 (Classification of Liabilities as Current or Non Current)
ii) IFRS 17 “Insurance Contracts”
January 01, 2021
iii) Amendments to IAS 8 (Definition of Accounting Estimate)
iv) Amendments to IAS 1 and IFRS Practice Statement 2 (Disclosure of Accounting Policies)
i) IFRS 17 Insurance Contracts and amendments to IFRS 17 Insurance Contracts.
ii) Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2).
iii) Definition of Accounting Estimates (Amendments to IAS 8).
January 01, 2022 iv) Deferred Tax related to Assets and Liabilities arising from a Single Transaction (Amendments
to IAS 12)
v) Lease liability in a Sale and Leaseback (Amendments to IFRS 16).
vi) Classification of Liabilities as Current or Non-current (Amendments to IAS 1).
Effective date deferred Amendments to IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in
indefinitely/available Associates and Joint Ventures” on sale or contribution of assets between an investor and its
for optional adoption associate or joint venture

IFRS 17 - Insurance Contracts

IFRS 17 was issued in May 2017 and applies to annual reporting periods beginning on or after 1 January 2021.

Financial Statements
Midland Bank PLC.
207 Annual Report 2023
 IFRS 17 establishes the principles for the recognition, measurement, presentation and disclosure of insurance
contracts within the scope of the standard. The objective of IFRS 17 is to ensure that an entity provides relevant
information that faithfully represents those contracts. The Bank has not yet assessed in potential impact of IFRS
17 on its financial statements.

2.18 Materiality and aggregation

Each material class of similar items has been presented separately in the financial statements. Items of dissimilar
nature also have been presented separately unless they are immaterial in accordance with IAS-1 “Presentation
of Financial Statements”.

2.19 Accounting for changes in policy, accounting estimates and errors

IAS - 8 Accounting Policies, Changes in Accounting Estimates and Errors, states that the effect of a change in
accounting policy and correction of errors, if material, is to be applied retrospectively, and change in an accounting
estimate is to be applied prospectively. The carrying amount of assets, liabilities, or equity may be changed
following a change in accounting estimates in the period of the change. The bank followed the same accordingly
and the Bank did not change the accounting policies and accounting estimates during the year 2023.

2.20 Related party disclosures

A party is related to the company if:
(i) directly or indirectly through one or more intermediaries, the party controls, is controlled by, or is under
common control with, the company; has an interest in the company that gives it significant influence over the
company; or has joint control over the company;
(ii) the party is an associate;
(iii) the party is a joint venture;
(iv) the party is a member of the key management personnel of the Company or its parent;
(v) the party is a close member of the family of any individual referred to in (i) or (iv);
(vi) the party is an entity that is controlled, jointly controlled or significantly influenced by or for which significant
voting power in such entity resides with, directly or indirectly, any individual referred to in (iv) or (v); or
(vii) the party is a post-employment benefit plan for the benefit of employees of the company, or of any entity
that is a related party of the company.
Details of the related party disclosures presented in note no. 44 and Annexure- D and E.

2.21 Event after the reporting period

As per IAS -10 “Events after Reporting Period” are those events, favorable and unfavorable, that occur between
the end of the reporting period and the date when the financial statements are authorised for issue. Two types
of events can be identified:
(a) those that provide evidence of conditions that existed at the end of the reporting period (adjusting events
after the reporting period); and
(b) those that are indicative of conditions that arose after the reporting period (no adjusting events after the
reporting period).
The only material event after the balance sheet date is: The Board of Directors recommended cash dividend @
5% for the financial year 2023, in its 153rd Board Meeting held on April 28, 2024.
Diluted earnings per share
In the financial year 2023, MDB issued 70 million ordinary shares through the IPO to its ordinary shareholders,
therefore, the EPS of 2022 was diluted/restated accordingly in the financial year 2023.

2.22 General
a) Comparative information
Comparative information in respect of the previous year has been presented from the financial statements
audited by current year auditors for the period ended on December 31, 2023. Figures of previous year have been
rearranged whenever necessary to confirm the current year/period presentation.

b) Disclosures of expenditures
Expenses, irrespective of capital or revenue nature, accrued/due, but not paid have been provided for in the
books of the Bank.

c) Approval of Financial Statements

These financial statements have been prepared by the management, audited by the external and regulatory
auditors and thereafter approved by the board of directors of the Bank in its 153rd Board meeting held on April
28, 2024.

Financial Statements
Midland Bank PLC.
208 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023

Particulars Notes 2023 2022

BDT BDT
3.00 Cash
In Hand (Including foreign currency) (note 3.01) 891,750,221 782,034,355
Balance with Bangladesh Bank and its Agent Bank (note 3.02) 2,901,578,704 2,712,931,438
3,793,328,925 3,494,965,793

3.01 In Hand (Including foreign currency)

Local Currency 888,016,034 774,162,858
Foreign Currency 3,734,187 7,871,497
891,750,221 782,034,355
3.02 Balance with Bangladesh Bank and its Agent Bank
With Bangladesh Bank
Local Currency 2,585,269,408 2,626,182,417
Foreign Currency 316,039,206 86,478,611
With Sonali Bank (as agent of Bangladesh Bank-Local Currency) 270,091 270,409
2,901,578,704 2,712,931,438

3.03 Cash Reserve Requirement (CRR ) and Statutory Liquidity Ratio (SLR )

Cash Reserve Requirement and Statutory Liquidity Ratio have been calculated and maintained in accordance with section 25 & 33 of The Bank Companies Act,
1991 and Circular No.# 01 , 02 & 01 dated December 10, 2013 , June 23, 2014 & April 03,2018 respectively of Monetary Policy Department (MPD) of Bangladesh Bank.
The Cash Reserve Requirement on the Bank's Time and Demand Liabilities at the rate of 4% has been calculated and maintained with the Bangladesh Bank in
Current Account and 13% Statutory Liquidity Ratio for conventional banking, 5.50% for Islami Banking Wing, excluding CRR, on the same liabilities has also
been maintained in the form of Treasury Bills, Bonds, Foreign Currency with Bangladesh Bank. Both the reserves maintained by the Bank are in excess of the
Statutory requirement.
As per Bangladesh Bank MPD Circular No. 03, dated 09 April 2020, Bank has to maintain CRR @ 4 % on forthnightly cumulative average basis and minimum
CRR @3.5% on daily basis.

Conventional Banking:

a) Cash Reserve Requirement (CRR)

Required Reserve 2,012,566,885 1,853,269,469

Maintained Reserve 2,265,573,752 2,233,891,643
Surplus/(Deficit) 253,006,867 380,622,174

b) Statutory Liquidity Ratio (SLR)

Required Reserve 6,612,668,450 6,122,295,610
Maintained Reserve 13,632,390,477 13,147,263,204
Surplus/(Deficit) 7,019,722,027 7,024,967,594

Total Required Reserve 8,625,235,335 7,975,565,079

Actual Reserve held 15,897,964,229 15,381,154,847
Surplus/(Deficit) 7,272,728,894 7,405,589,768

c) Components of Statutory Liquidity Ratio (SLR)

Cash in Hand 890,140,400 776,827,280
Balance with Bangladesh Bank - -
Balance with Sonali Bank 7,286,580 10,405,860
Excess Reserve of CRR 253,006,867 380,622,174
Government Securities 12,481,956,630 11,979,407,890
13,632,390,477 13,147,263,204

Financial Statements
Midland Bank PLC.
209 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023

Particulars Notes 2023 2022

Islami Banking Wing
BDT BDT

a) Cash Reserve Requirement (CRR)

Required Reserve 133,359,250 93,648,026

Maintained Reserve 319,951,976 383,223,060
Surplus/(Deficit) 186,592,726 289,575,034

b) Statutory Liquidity Ratio (SLR)

Required Reserve 183,368,970 128,766,040
Maintained Reserve 384,852,546 491,432,114
Surplus/(Deficit) 201,483,576 362,666,074
c) Components of Statutory Liquidity Ratio (SLR)
Cash in Hand 1,609,820 5,207,080
Balance with Bangladesh Bank - -
Balance with Sonali Bank - -
Excess Reserve of CRR 186,592,726 289,575,034
Government Securities - -
Other Eligible Securities 196,650,000 196,650,000
384,852,546 491,432,114

4.00 Balance with other Banks and Financial Institutions

In Bangladesh 1,986,136,023 2,455,383,089
Outside Bangladesh 11,974,157 113,044,841
1,998,110,179 2,568,427,930

4.01 In Bangladesh Transaction Currency

Current Account
Standard Bank Ltd. BDT 8,995 9,915
Sonali Bank Ltd. BDT 21,243,916 29,996,278
Janata Bank Ltd. BDT 367,694 2,082,889
Agrani Bank Ltd. BDT 28,718,766 22,479,128
Rupali Bank Ltd. BDT 7,918,571 12,954,742
Trust Bank Ltd. BDT 6,826,332 2,186,841
Dutch Bangla Bank Ltd. BDT 221,890 1,637,148
The Premier Bank Ltd. BDT 3,060,192 1,992,251
68,366,355 73,339,192

Special Notice Deposit

Mercantile Bank Ltd. BDT 5,686,575 20,979,811
Prime Bank Ltd. BDT 641,524 640,771
AB Bank Ltd. BDT 239,369 3,406,935
Eastern Bank Ltd. BDT 2,198 16,380
6,569,667 25,043,897

Fixed Deposits Receipt (FDR)

FAS Finance & Investment Ltd. BDT 175,000,000 175,000,000
First Finance Ltd. BDT 131,000,000 132,200,000
IDLC Finance Limited BDT - 340,000,000
Bangladesh Finance Ltd. BDT 80,100,000 83,000,000
South Bangla Agriculture & Commerce Bank Ltd. BDT 100,000,000 -
Bank Al-Falah Ltd. BDT - 200,000,000
Premier Leasing & Finance Ltd. BDT 544,300,000 544,300,000
Phoenix Finance & Investments Ltd. BDT 170,500,000 170,500,000
International Leasing & Financial Services Ltd. BDT 331,500,000 331,500,000
Fareast Finance & Investment Limited BDT 288,500,000 290,000,000
Prime Finance & Investment Ltd. BDT 3,800,000 4,000,000
CVC Finance Ltd BDT 86,500,000 86,500,000
Sub total 1,911,200,000 2,357,000,000

1,986,136,023 2,455,383,089

Financial Statements
Midland Bank PLC.
210 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023

Particulars Notes 2023 2022

BDT BDT
4.02 Outside Bangladesh (NOSTRO Accounts) Transaction Currency
in current account
AB Bank, Mumbai Branch US$ 69,951,868 3,042,662
United Bank of India US$ 14,058,461 40,010,921
Axis Bank Limited US$ 16,851,729 5,502,098
National Bank of Pakistan, Tokyo Japan JPY 1,773,160 1,756,013
Mashreq Bank Psc, NY US$ (133,130,971) 3,173,859
Mashreq Bank Psc, NY OBU US$ 21,067,802 29,578,176
Kookmin Bank, South Korea GBP 13,410,405 1,303,665
Habib American Bank, NY US$ (2,020,966) 14,998,190
NIB Bank, Pakistan US$ 1,731,142 468,739
Aktif Yatirim Bank US$ 8,934 232,530
Aktif Yatirim Bank EURO 3,487,464 6,283,038
Aktif Yatirim Bank GBP 321,549 5,879,737
Banca UBAE Italy EURO 1,829,628 270,875
Banca UBAE Italy GBP - 480,855
Kookmin Bank, South Korea US$ 2,499,186 63,482
Sonali Bank US$ 2,863 -
Sonali Bank EURO 131,904 -
11,974,157 113,044,841

Details of NOSTRO accounts are shown in Annexure-A

4.03 Maturity grouping of Balance with other Banks and Financial Institutions
On Demand 1,446,900,000 2,444,700,000
Less than three months 247,600,000 123,700,000
More than three months but less than one year 303,610,179 27,930
1,998,110,179 2,568,427,930

5.00 Money at Call and Short Notice:

529,900,000 120,000,000
529,900,000 120,000,000
6.00 Investments

Government(note 6.01) 13,889,641,408 13,186,012,591

Others( note 6.02) 3,490,465,307 3,719,777,647
17,380,106,715 16,905,790,238
i) Investment Classified as per Bangladesh Bank Circular
Held to Maturity (HTM) 11,801,619,088 11,286,914,741
Held for Trading ( HFT) 679,655,337 562,178,252
Reverse Repo - -
Prize Bond 682,200 894,900
Government Securites Encumbered 1,211,034,783 1,009,954,699
Government Securites -SUKUK Bond 196,650,000 326,070,000
Other Investments 3,490,465,307 3,719,777,647
17,380,106,715 16,905,790,238
ii) Investment Classified as per Nature

6.01 Government Securities

Treasury Bills ( at present value )
Un-encumbered
28 days - -
91 days 390,550,152 -
182 days - -
364 days 173,174,906 -
5 Years - -
Sub-total 563,725,058 -

Financial Statements
Midland Bank PLC.
211 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023

Particulars Notes 2023 2022

BDT BDT
Encumbered
91 days - -
182 days - -
364 days - -
Sub-total - -
Total Treasury Bill 563,725,058 -
Treasury Bonds
Un-encumbered
2 Years 981,541 -
5 Years 135,711,005 1,157,419,429
5 Years (Bangladesh Government Investment Sukuk) 196,650,000 326,070,000
10 Years 6,423,681,869 5,371,181,005
15 Years 3,732,279,312 3,607,594,613
20 Years 1,624,895,639 1,712,897,946
Sub-total 12,114,199,367 12,175,162,992
Encumbered
2 Years - -
5 Years - -
10 Years - 151,545,215
15 Years 252,137,975 -
20 Years 958,896,808 858,409,484
Sub-total 1,211,034,783 1,009,954,699
Total Treasury Bond 13,325,234,150 13,185,117,691
Reverse Repo - -
Prize Bonds ( at face value ) 682,200 894,900
Sub Total 13,889,641,408 13,186,012,591

6.02 Other Investments

Shares in quoted companies(Regular portfolio) 814,313,250 748,632,323
Shares in quoted companies(Special portfolio) 720,771,285 703,286,485
Details shown in Annex B
Shares in unquoted companies ( at face value) :
Regent Energy & Power Ltd.(Preference Share) 44,613,788 44,613,788
Union Capital Ltd. (Preference Share) 1,300,000 1,500,000
Envoy Textiles Ltd. (Preference Share) 80,000,000 120,000,000
Confidence Power Bogra Ltd. (Preference Share) 25,000,000 37,500,000
Premier Cement Mills Limited (PCML) (Preference Share) 437,500,000 500,000,000
Fair Electronics Ltd (FEL) (Preference Share) 240,000,000 300,000,000
CWT Sadharan Bima Growth Fund (Open End Mutual Fund) - 5,000,000
Ekush First Unit Fund (Open End Mutual Fund) 23,088,898 27,832,445
VIPB Accelerated Income Unit Fund (Open End Mutual Fund) 27,500,000 27,500,000
VIPB NLI 1st Unit Fund (Open End Mutual Fund) 11,812,606 11,812,606
UCB AML First Mutual Fund (Open End Mutual Fund) - -
Ekush Growth Fund (Open End Mutual Fund) 20,000,000 20,000,000
EDGE High Quality Income Fund (Open End Mutual Fund) 20,000,000 20,000,000
UCB Taqwa Growth Fund (Open End Mutual Fund) 20,000,000 20,000,000
UCB Income Plus Fund (Open End Mutual Fund) 50,000,000 -
Ekush Stable Return Fund (Open End Mutual Fund) 4,565,480 -
1,005,380,772 1,135,758,839
Bond, Debenture & Commercial Papers:
UCB- Subordinated Bond - -
SIBL- Subordinated Bond - 40,000,000
Standard Bank -Subordinated Bond 40,000,000 80,000,000
Hashem Foods Ltd-Commercial Paper - 102,100,000
North-West Power Generation Company Ltd-Non-Convertible Coupon Bond 350,000,000 350,000,000
Trust Bank - Perpetual Bond 60,000,000 60,000,000
Jamuna Bank - Perpetual Bond 250,000,000 250,000,000
NCC Bank - Perpetual Bond 250,000,000 250,000,000
950,000,000 1,132,100,000
Sub Total 3,490,465,307 3,719,777,647
Total 17,380,106,715 16,905,790,238

Financial Statements
Midland Bank PLC.
212 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023

2023 2022
BDT BDT
6.03 Assets pledged as security for liabilities as at December 31, 2023 is BDT- 6,101,816,670.13 of Treasury Bill and Bond against Re-Purchase Agreement. Details

are as under:
(a) i. Disclosure regarding outstanding Repo as at 31 December 2023

Counter Party Name Agreement Date Reversal Date Amount

1 Bangladesh Bank 24-Dec-2023 1-Jan-2024 1,447,793,865
2 Bangladesh Bank 26-Dec-2023 2-Jan-2024 1,521,394,300
3 Bangladesh Bank 27-Dec-2023 3-Jan-2024 1,368,105,385
4 Bangladesh Bank 28-Dec-2023 4-Jan-2024 1,004,523,120
5 Bangladesh Bank (Liquidity Support for capital market investment under special fund) 24-Dec-2023 24-Mar-2024 760,000,000
Total 6,101,816,670

ii. There is no outstanding Reverse Repo as at 31 December 2023 with the Bank.

(b) Disclosure regarding overall transaction of Repo for the year 2023

Particulars Minimum outstanding Maximum outstanding Daily average outstanding

during the year during the year during the year
Securities sold under Repo:
i) with Bangladesh Bank 2,096,554,858 6,589,022,454 4,099,791,596
ii) with Other Banks & Financial Institutions 109,388,687 5,365,705,128 1,533,437,019
Securities purchased under reverse Repo:
i) with Bangladesh Bank - - -
ii) with Other Banks & Financial Institutions 52,438,250 192,424,521 11,794,625

6.04 Maturity grouping of Investment as follows:

On Demand 682,200 294,000
Up to one month 1,879,800 600,900
Less than three months 601,900,000 1,451,900,000
More than three months but less than one year 2,362,100,000 40,000,000
More than one year but less than five years 6,152,580,000 8,107,100,000
More than five years 8,260,964,715 7,305,895,338
17,380,106,715 16,905,790,238
7.00 Loans and Advances / Investments
Loans, Cash Credits, Overdrafts, etc. (note-7.01) 51,379,100,087 49,606,134,790
Bills Purchased and Discounted (note-7.02) 3,483,557,906 3,186,672,476
Total Loans and Advances 54,862,657,994 52,792,807,266

7.01 Loans, Cash Credits, Overdrafts, etc. / Investments

In Bangladesh:
Term Loan 21,544,987,931 19,094,556,520
Overdraft 8,678,632,084 7,975,277,348
Time Loan 11,742,359,775 13,662,789,912
Cash Credit 1,992,948,926 2,118,004,627
Trust Receipt 2,630,150,569 1,767,903,934
Consumer Loan 1,478,098,901 1,150,951,600
Payment Against Documents(PAD) 45,948 -
Agricultural Credit 802,471,774 820,972,923
Bridge Finance - -
EDF Loan 2,266,631,602 2,768,779,712
Lease Finance - -
Loan General - -
Loan Against Capital Market - -
Packing Credit 44,984,683 77,746,336
Staff Loan 107,946,144 102,063,477
Other Loans and Advances 89,841,751 67,088,400
51,379,100,087 49,606,134,790
Outside Bangladesh - -
51,379,100,087 49,606,134,790

Financial Statements
Midland Bank PLC.
213 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023

Particulars 2023 2022

BDT BDT

7.02 Bill Purchased and Discounted

Payable in Bangladesh 96,325,084 181,234,545
Payable outside Bangladesh 3,387,232,822 3,005,437,931
3,483,557,906 3,186,672,476

7.03 Net Loans & Advances /Investments

Gross Loans & Advances/ Investments ( note- 7) 54,862,657,994 52,792,807,266
Less:
Classified Loans & Advances/ Investments (note-7.08) 2,091,566,508 1,469,651,458
Interest/ Profit Suspense (Note- 13.06) 1,076,755,986 868,462,210
Provision for Loans & Advances/ Investments-General Provision (Note -13.01) 494,566,815 452,397,042
Net Loans & Advances /Investments 51,199,768,685 50,002,296,556

7.04 Maturity grouping of Loans and Advances /Investments

On Demand 4,759,254,000 1,131,400,000
Up to one month 2,741,846,000 6,580,700,000
Not more than three months 5,813,100,000 8,657,400,000
More than three months but less than one year 16,058,800,000 11,583,200,000
More than one year but less than five years 14,945,185,257 14,867,407,266
More than five years 10,544,472,737 9,972,700,000
54,862,657,994 52,792,807,266
7.05 Maturity grouping of Bills Purchased and Discounted
Within one month 16,800,000 11,700,000
More than one but not more than three months 7,400,000 9,900,000
More than three months but less than six months 3,459,357,906 3,158,472,476
More than six months - 6,600,000
3,483,557,906 3,186,672,476

7.06 Concentration of Loans and Advances/ Investments:

a) Loans and Advances/Investments to Institutions in which the Directors of the Bank have interest 2,333,811 3,758,928
b) Advances to Managing Director & other Senior Executives 107,946,144 102,063,477
c) Advances to Industries
Agriculture 782,469,194 544,327,713
RMG 3,303,858,514 3,448,501,562
Textile 4,586,874,837 4,757,050,100
Ship Building - -
Ship Breaking - -
Other Manufacturing industry 16,602,651,755 16,623,731,594
SME loans 3,715,094,699 3,671,028,040
Construction 3,917,126,488 4,723,543,263
Power, Gas 1,195,278,034 1,086,231,423
Transport, Storage and Communication 1,447,008,382 1,366,213,722
Trade Service 6,743,833,241 5,599,771,524
Commercial real estate financing 24,330,045 31,399,705
Residential real estate financing 148,934,726 74,006,391
Consumer credit 2,071,749,457 2,026,685,959
Capital Market 528,933,090 622,626,079
NBFIs 2,490,918,044 2,974,575,698
Others 7,193,317,531 5,137,292,087
54,752,378,038 52,686,984,861
54,862,657,994 52,792,807,266

Financial Statements
Midland Bank PLC.
214 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023
2023 2022
BDT BDT
7.07 Details of Large Loan/Investments
Number of borrowers with outstanding amount of loans exceeding 10% of total capital of the Bank and classification status thereof. Total capital of the Bank
is BDT 917.84 crore as at December 31, 2023 (BDT 819.60 crore in 2022).
Number of Clients 32 34
Outstanding Advances (BDT ) 27,005,766,166 27,659,316,002

Client wise details are given below:

Outstanding (BDT ) Total 2023 Total 2022

Sl Name of the clients Status
Funded Non - Funded (BDT ) (BDT )
1 Adex Group UC 489,772,530 57,047,676 546,820,206 683,107,844
2 Nitol-Niloy Group UC 268,039,143 25,815,000 293,854,143 479,910,881
3 Zon Ron Group UC 838,577,828 109,749,630 948,327,457 987,762,279
4 Rangs Group UC 428,375,637 521,088,846 949,464,482 853,944,518
5 Abul Khair Group UC 972,930,235 2,943,526 975,873,761 28,541,322
6 GPH Group UC 736,395,794 166,002,398 902,398,192 1,765,384,877
7 Summit Group UC 1,180,721,054 - 1,180,721,054 1,028,648,043
8 Energypac Group UC 723,152,175 104,327,209 827,479,384 2,359,618,320
9 Alliance Group UC 731,195,785 - 731,195,785 754,555,271
10 BD Group UC 933,845,610 5,967,700 939,813,310 924,392,188
11 Confidence Group UC 912,589,233 749,668,114 1,662,257,347 1,338,956,947
12 ACI Group UC 684,666,376 268,629,399 953,295,776 960,746,905
13 Unimed Group UC 748,100,383 25,039,067 773,139,450 625,337,172
14 MSA Group UC 778,760,780 268,668,817 1,047,429,597 1,219,269,784
15 EXPO Group UC 353,169,712 1,050,746,566 1,403,916,277 894,806,138
16 Saiham Group UC 759,603,324 382,851,799 1,142,455,122 1,503,316,980
17 Spectra Engineers Ltd. UC 313,127,708 647,330,243 960,457,951 554,691,635
18 Akij Group UC - - - -
19 Max Group UC 581,060,662 35,117,345 616,178,007 574,995,184
20 Mir Group UC - 564,897,735
21 S.B Group UC - 895,923,021
22 Salma Group UC 40,619,432 - 40,619,432 -
23 Seacom Group UC 706,554,075 - 706,554,075 306,958,777
24 T. K. Group UC 482,317,070 49,264,252 531,581,322 359,072,129
25 Youth Group UC - 731,491,267 731,491,267 700,000,000
26 Bangladesh-India Friendship Power UC - - - -
27 Modern Syntex Limited UC - - - 166,095,148
28 NDE Group UC - - - 1,203,372,754
29 City Group UC 2,036,736,346 9,959,808 2,046,696,154 2,815,288,125
30 Meghna Group UC 898,477,284 208,619,590 1,107,096,874 1,885,577,256
31 Fair Group UC 525,216,259 84,846,512 610,062,771 576,536,675
32 NPoly group UC - - - 478,722,836
33 Florance Group UC - - - 168,885,259
34 Advanced Chemical Industries Limited UC 1,032,778,667 - 1,032,778,667 -
35 EPV UC 277,285,685 1,383,425,412 1,660,711,097 -
36 Healthcare UC 82,017,889 589,677,245 671,695,134 -
37 Rak Group UC 402,520,016 217,287,698 619,807,714 -
38 Renaissance Group UC 377,594,359 14,000,000 391,594,359 -
Total 19,296,201,047 7,709,565,118 27,005,766,166 27,659,316,002

7.08 Classification of Loans and Advances/Investments:

Unclassified (UC):
Standard 51,880,200,931 50,357,413,459
Special Mention Account (SMA) 890,890,555 965,742,348
Sub total 52,771,091,486 51,323,155,808
Classified:
Substandard 200,451,979 80,002,366
Doubtful 70,288,388 34,244,808
Bad & Loss 1,820,826,141 1,355,404,284
Sub total 2,091,566,508 1,469,651,458
Total 54,862,657,994 52,792,807,266

Financial Statements
Midland Bank PLC.
215 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023
Particulars 2023 2022
BDT BDT

7.09 Details of Required Provision for Loans and Advances/Investments

Provision
Particulars Provision Rate
Required Maintained
Unclassifed (UC):
Standard 0.25%,1%, 2% & 5% 401,738,705 486,738,705
Special Mention Account (SMA) 0.25%,1%, 2% & 5% 7,828,110 7,828,110
Sub total 409,566,815 494,566,815
ClassifIed:
Substandard 5% & 20% 207,469,397 207,469,397
Doubtful 5% & 50% 308,093,758 308,093,758
Bad loan 100% 933,225,033 933,225,033
Sub total 1,448,788,189 1,448,788,189
Total 1,858,355,004 1,943,355,004
Excess/(short) Provision as at December 31, 2023 85,000,000

7.10 Details of Required Provision for Off Balance Sheet Items

Required Provision for Off- Balance Sheet Exposures 104,793,283 112,994,697
Total Provision maintained 104,793,283 112,994,697
Excess/(Short) Provision - -

7.11 Suit filed by the Bank

No of Suits file
Artha Rin Adalat 49 33
N. I Act 33 29

Suit Amount
Artha Rin Adalat 1,282,113,454 957,114,245
N. I Act 133,141,047 125,965,674

7.12 Geographical location wise loans and advances/Investments

Inside Bangladesh
Urban
Dhaka Division 46,475,521,800 44,992,833,260
Chittagong Division 6,828,786,197 6,444,323,754
Khulna Division 78,927,033 64,695,974
Rajshahi Division 222,471,695 194,657,962
Mymensingh - -
Barisal Division 2,631,668 -
Rangpur Division 33,604,978 2,992,155
Sylhet Division 16,247,617 16,631,185
53,658,190,990 51,716,134,291

Rural
Dhaka Division 815,457,882 702,180,530
Chittagong Division 116,992,501 109,839,670
Khulna Division 19,416,620 21,915,554
Rajshahi Division 132,031,527 140,202,133
Mymensingh Division 109,776,958 98,445,158
Rangpur Division 10,791,517 4,089,930
Barisal Division -
Sylhet Division -
1,204,467,004 1,076,672,975
Outside Bangladesh - -
54,862,657,994 52,792,807,266

Financial Statements
Midland Bank PLC.
216 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023

Particulars 2023 2022

BDT BDT
7.13 Particulars of loans and advances/Investments

(i) Loans & Advances considered good in respect of which the bank is fully secured 23,066,597,594 23,120,372,656

(ii) Loans & Advances considered good against which the bank holds no security other than the
31,796,060,400 29,672,434,610
debtors’ personal guarantee
(iii) Loans & Advances considered good and secured by the personal undertaking of one or more
parties in addition to the personal guarantee of the debtors - -

(iv) Loans adversly classified, provission not maintained thereagainst - -

54,862,657,994 52,792,807,266

(v) Loans & Advances due by directors or officers of the bank or any of them either separately or jointly
110,279,956 105,822,405
with any other persons
(vi) Loans & Advances due from companies or firms in which the directors of the bank are interested as
- -
directors, partners or managing agents or, in case of private companies, as members
(vii) Maximum total amount of advances, including temporary advances made at any time during the
- -
year to directors or managers or officers of the bank or any of them either separately or jointly with
(viii) Maximum total amount of advances, including temporary advances granted during the year to the
- -
companies or firms in which the directors of the Bank are interested as directors, partners or
(ix) Due from other banking companies - -

(x) Amount of classified loans on which interest has not been charged:

a. i) (Decrease)/Increase in provision, 465,692,649 499,978,973

ii) amount of loan written off - -
iii) amount realised against loan previously written off; - -
b. Amount of provision kept against loan classified as ' bad/ loss' 933,225,033 847,912,003
c. Interest creditable to the interest suspense A/c; 1,076,755,986 868,462,210

(xi) Cumulative amount of loans written-off 75,896,067 -

(xii) Amount of loans written-off during the year 75,896,067 -

(xiii) The amount of written off loan for which law suit has been filed 75,896,067 -

7.14 Audited Financial Statements are mandatory documents for any company applying for new loan facility from bank. The bank reviews the Audited Financial
Statements while assessing any new credit / Loan facilities to any new customers. In compliance with BRPD Circular Letter No. 04, dated January 04, 2021, the
bank obtained audited financial statements while approving any new loan facility and wherever required under Financial Reporting Act’2015. Audited Financial
Statements are preserved in the loan files by the bank and during each review latest audited financials are also obtained. However, in some special circumstances
where latest Audited Financial Statements is not available and where there is valid reason for delay in submission of latest audited financial, the bank uses interim
Management Accounts for conducting the Internal Credit Risk Rating (ICRR) for the purpose of renewal of any loan facilities as per guidelines of ICRR of
Bangladesh Bank. However, from September’ 2021 the Bank is verifying the Financial Statements using the Document Verification System (DVS) as per BRPD
Circular Letter 35 dated July 06, 2021 and FRC Letter No. 178/FRC/APR/2021/27(28) dated December 08, 2021.
8.00 Fixed Asset including Premises, Furniture & Fixture
Property, Plant & equipment
Computer and Peripherals 295,849,031 231,166,776
Furniture & Fixture 239,670,360 189,421,047
Office Equipment 212,721,271 187,706,177
Motor Vehicles 31,125,193 26,094,193
Books 20,260 20,260
Intangible Assets 108,900,598 64,713,819
Right of Use Assets 833,365,395 768,320,720
Land, Building & Construction - -
Total Cost 1,721,652,109 1,467,442,993
Less: Accumulated Depreciation 1,110,902,598 892,773,089
Book value at the end of the year 610,749,511 574,669,903
Details are shown in Annex-C

Financial Statements
Midland Bank PLC.
217 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023

Particulars 2023 2022

9.00 Other Asset
BDT BDT
Classification of Other Asset
A) Income generating Other Asset - -
-
B) Non-Income generating Other Assset :
Advance Rent (note-9.01) - -
Interest Accrued on Investment but not collected & other income receivable 791,570,009 813,843,823
Dividend Receivable 45,273,314 33,216,742
Preliminary Expenditure -
Advance Income Tax (note-9.02) 2,615,351,806 2,050,142,134
Suspense Account (note-9.03) 53,168,334 101,666,468
Advance Subscription 490,384 1,137,353
Advance to Subsidiary Company 6,735,276 -
Prepaid Insurance 2,737,989 3,251,809
Stationery, Stamps, Printing materials in stock etc. 11,232,433 2,953,360
Sundry Assets (note-9.04) 165,815,032 385,492,688
Stamp in Hand 1,399,106 1,729,686
Branch Adjustment (note-9.05) (0) -
Deferred Tax Assets (note-9.06) 546,613,862 589,250
Exchange House 286,814 3,445,479
Clearing House and BFTN Adjustment (2,243,897) 150,538
4,238,430,461 3,397,619,330

Total Other Asset (A+B) 4,238,430,461 3,397,619,330

9.01 Advance Rent adjusted due to IFRS 16.

9.02 Advance Income Tax

Opening Balance 2,050,142,134 1,454,662,614
Less: Adjustment made during the year - -
Add: Payment during the year 565,209,672 595,479,520
Closing Balance 2,615,351,806 2,050,142,134

9.03 Suspense account represents advance paid for encashment of PSP,BSP & WEDB, advances for opening of
new branches, procurement of equipments, etc,
9.04 Sundry Assets
Security Deposit 1,044,678 364,678
Stock of Assets - -
Receivable from Bangladesh Bank- Time Loan-WC under stimulus packag 13,086,345 67,915,580
Receivable from Brokerage House 115,271,918 285,988,315
Sundry Debtors 4,440,149 13,846,185
MFS Settlement Account 22,825,839 8,433,264
OBU Adjustment Account - -
Prepaid Interest 4,984,022 4,913,824
Prepaid Furniture Allowance 4,162,082 4,030,841
165,815,032 385,492,688

9.05 Branch Adjustment (net)

Entries No. of Entries Outstanding BDT BDT
Debit entries - - -
Credit entries - - -
- - -

Financial Statements
Midland Bank PLC.
218 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023

Particulars 2023 2022

BDT BDT
9.06 Deferred tax asset/ (Liability)
Opening Balance 589,250 (16,977,457)
Deferred tax Expenses/ (Income) (546,024,612) (17,566,707)
Closing Balance Deferred Tax asset/ (liability) 546,613,862 589,250

9.06.01 Computation of deferred tax

Specific Provision for Loans & Advances 1,448,788,189 -

Accounting written down value- Fixed Assets 300,590,227 172,210,145

Less: Tax base written down value- Fixed Assets 352,928,575 233,253,240
Taxable temporary difference (52,338,348) (61,043,095)
Right of Use of Assets 310,159,284 402,459,758
Lease Obligation 265,236,388 359,214,988
Taxable temporary difference (44,922,896) (43,244,770)
Book value - Gratuity provision 148,320,300 129,520,300
Less: Tax base - Gratuity provision 42,210,280 23,661,103
Deductable temporary difference 106,110,020 105,859,197
Net deductable temporary difference 1,457,636,964 1,571,332
Effective tax rate 37.50% 37.50%
Deferred Tax Assets/(Liability) 546,613,861 589,250

Deferred Tax (Expenses)/Income

Closing Deferred Tax Assets 546,613,861 589,250
Opening Deferred Tax Assets/(Liability) 589,250 (16,977,457)
Deferred Tax (Expenses)/Income 546,024,612 17,566,707

9.07 Classification of Other Asset

Unclassified 4,201,814,545 3,360,254,368
Substanderd - -
Doubtful - -
Bad/Loss 36,615,916 37,364,962
4,238,430,461 3,397,619,330

10.00 Non-Banking Assets

Land at cost (market value of the land at BDT 14.54 million) 12,585,359 12,585,359
12,585,359 12,585,359

The Bank filed on Artha Rin suit bearing # 539/2017, dated 02.03.2017 against one default customer, A/C : Al-Fahad Air Ticketing & Medical Tourism Limited.
The Bank has been awarded the ownership of the mortgage properties according to the verdict of the honorable court in accordance with section 33(5) of
“Artharin Adalat 2003''. Subsequent approval taken from the Board of Directors of the Bank, the full amount of loan of BDT 12.59 million (market value of the
property at BDT 14.54 million) transferred to Non-Banking Assets of the Bank, which will continue to sustain in Bank's Balance Sheet until sale / disposal of the
said property acquried by the Bank u/s 33(5) of the Artha Rin Adalot Ain 2023 as mortgagee bank. As per Bangladesh Bank Guideline, 100% provision has been
maintained against this asset during the year.

11.00 Borrowing From Other Banks, Financial Institutions & Agents

In Bangladesh 6,317,165,470 8,243,230,054

Outside Bangladesh - -
6,317,165,470 8,243,230,054

Financial Statements
Midland Bank PLC.
219 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023

Particulars 2023 2022

BDT BDT
11.01 In Bangladesh:
Borrowing from Bank/Other Institutions: 550,000,000 1,530,000,000
Sonali Bank PLC. - 200,000,000
BANK ALFALAH BANGLADESH 450,000,000 -
UTTARA BANK PLC. 100,000,000 -
Bank Al Falah - 490,000,000
Meghna Bank PLC. - 200,000,000
Citizens Bank PLC. - 40,000,000
Eastern Bank PLC. - 200,000,000
Uttara Bank PLC. - 250,000,000
Dhaka Bank PLC. - 150,000,000

Repo of Treasury Bill/Bond

Bangldesh Bank (LS) 760,000,000 740,000,000

Refinance from Bangladesh Bank 454,365,809 1,064,040,110

Investment Promotion and Financing Facility (IPFF) 3,175,898,318 2,702,357,000
Borrowing From Bangladesh Bank (EDF) 1,376,901,343 2,206,832,945
5,007,165,470 5,973,230,054

Total 6,317,165,470 8,243,230,054

11.02 Security against Borrowing From Other Banks, Financial Institutions and Agents
Secured - -
Unsecured 6,317,165,470 8,243,230,054
6,317,165,470 8,243,230,054

11.03 Maturity Grouping of Borrowing From other Banks, Financial Institutions & Agents
On Demand 555,600,000 1,565,900,000
Up to one month 122,000,000 465,900,000
Not more than three months 145,000,000 368,800,000
More than three months but less than one year 1,292,000,000 940,000,000
More than one year but less than five years 1,013,865,470 1,256,030,054
More than five years 3,188,700,000 3,646,600,000
6,317,165,470 8,243,230,054

12.00 Deposit and Other Accounts

From Banks 2,590,614,788 5,213,283,317
From Customers 57,712,109,457 52,549,726,756
60,302,724,245 57,763,010,073

12.01 Customer Deposit and Other Accounts:

Current Deposit & Other Accounts :
Current Deposit 3,051,608,329 3,767,421,973
Foreign Currency Deposit 2,842,509,416 3,578,789,473
Sundry Deposit 2,275,760,127 1,535,443,752
8,169,877,872 8,881,655,198

Bills Payable :
Payment Order Issued 465,290,468 293,988,162
Pay Slip Issued - -
Demand Draft Payable - -
465,290,468 293,988,162

Short Notice Deposit 6,955,027,629 7,512,112,992

Savings Deposit 5,638,958,266 5,071,243,226
Fixed Deposit 33,068,915,121 30,664,800,460

Financial Statements
Midland Bank PLC.
220 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023

Particulars 2023 2022

BDT BDT
Deposit Schemes:
MDB Super Monthly Savings 2,913,460,576 2,627,147,878
MDB Double Benefit 603,500,100 556,439,001
MDB Family Support 1,649,640,870 1,527,182,324
MDB Corporate Support 165,327,685 65,248,653
MDB Shikhsha Sanchay Scheme 21,760,737 18,030,577
MDB Special Rural Savings - -
Midland-Nirbhorotha - -
MDB Millionaire Savings Scheme 263,764,563 215,098,791
MDB Kotipoti 193,162,220 193,436,722
MDB Platinum Savings Scheme 117,716,079 89,906,963
MDB Traveller's Savings Scheme 15,473,507 8,216,509
MDB Saalam Monthly Scheme 43,362,652 28,497,935
MDB Saalam Hajj Savings Scheme 2,214,501 2,360,146
Saalam Digital Monthly Savings Scheme 13,813,219 6,169,863
Saalam Digital Hajj Savings Scheme 1,458,179 1,474,672
6,004,654,888 5,339,210,034
Total 60,302,724,245 57,763,010,073

12.02 Maturity grouping of Deposit and Other Accounts:

On Demand 972,380,706 859,000,000
Repayable within one month 14,743,819,294 8,812,100,000
More than one month but within three months 13,876,500,000 90,100,000
More than three months but within one year 15,088,100,000 12,910,200,000
More than one year but within five years 14,951,928,764 34,259,310,073
More than five year but within ten years 669,995,481 832,300,000
60,302,724,245 57,763,010,073

12.03 Demand & Time Deposit

a) Demand Deposit 9,142,674,584 9,632,055,250

Current Deposit 3,051,608,329 3,767,421,973
Savings Deposit (9%) 507,506,244 456,411,890
Foreign Currency Deposit (non interest bearing) 2,842,509,416 3,578,789,473
Sundry Deposit 2,275,760,127 1,535,443,752
Bills Payable 465,290,468 293,988,162

b) Time Deposits 51,160,049,661 48,130,954,822

Saving Deposit (91%) 5,131,452,022 4,614,831,336
Fixed Deposit 33,068,915,121 30,664,800,460
Short Notice Deposit 6,955,027,629 7,512,112,992
Deposit Under Scheme 6,004,654,888 5,339,210,034
Total Demand & Time Deposits 60,302,724,245 57,763,010,073

Financial Statements
Midland Bank PLC.
221 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023

Particulars 2023 2022

BDT BDT
12.04 Sectorwise Deposit
Government 1,783,568,698 1,331,812,744
Deposit Money Banks 2,590,614,788 5,213,283,317
Other Public 4,079,761,667 2,995,184,525
Foreign Currency 4,009,901,859 5,928,274,760
Private 47,838,877,233 42,294,454,727

60,302,724,245 57,763,010,073

13.00 Other Liabilities

Provision for Loans and Advances (Note 13.01) 1,943,355,004 1,407,069,090
Special General Provision -COVID 19 (Note 13.02) 112,324,283 170,865,864
Provision for Outstanding debit entries in NOSTRO Account - -
Provision for Off Balance Sheet Items (Note 13.03) 104,793,283 112,994,697
Provision for Good Borrower - -
Provision for Other Assets(Note 13.04) 39,623,679 37,364,962
Provision for Income Tax (Note 13.05) 3,077,798,674 2,387,679,130
Interest Payable on Borrowing 192,722,298 100,985,367
Audit fee Payable 345,000 345,250
Bonus Payable - -
Accrued Expenses 127,719,727 64,768,852
Unearned Income ( for investment & placement) 465,663,470 402,922,298
Corporate Social Responsibility (CSR) Payable - -
Startup Fund 28,654,585 17,323,519
Deferred Tax Liability - -
Lease Liability (note-13.06) 265,236,388 359,214,988
Provision for Gratuity - -
Interest Suspense (Note 13.07) 1,076,755,986 868,462,210
Provision for Share, Commercial Paper & Bond (Note 13.08) 161,812,935 242,941,996
Provision for Non-Banking Asset 12,585,359 12,585,359
Other Liabilities 45,926,242 28,562,627
7,655,316,913 6,214,086,209

13.01 Provision for Loans and Advances

For Unclassified
Opening Balance 452,397,042 643,109,175
Add: Provision made during the year 42,169,773 (190,712,133)
Closing Balance 494,566,815 452,397,042
For Classified
Opening Balance 954,672,048 454,693,075
Add: Provision made during the year 465,692,649 499,978,973
Add: Provision transfer from Provision for Share, Commercial Paper & Bond 102,100,000 -
Less: Loan written off during the year 73,676,508 -
Closing Balance 1,448,788,189 954,672,048
1,943,355,004 1,407,069,090

13.02 Special General Provision -COVID 19

A. Opening Balance 170,865,864 186,290,081
B. Add: Provision made during the year - 26,365,864
C. Less: Provision release due to recovery 58,541,581 41,790,081
D. Net Provision Charged in Profit & Loss Account [B-C] (58,541,581) (15,424,217)
E. Closing Balance [ A+D] 112,324,283 170,865,864

13.03 Provision for Off Balance Sheet Items

Opening Balance 112,994,697 109,846,794
Add: Provision made during the year (8,201,414) 3,147,903
Less: Provision transferred to Loans and Advances - -

Closing Balance 104,793,283 112,994,697

Financial Statements
Midland Bank PLC.
222 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023

Particulars 2023 2022

BDT BDT
13.04 Provision for other Assets
Opening Balance 37,364,962 5,492,125
Add: Provision made during the year 3,712,324 31,872,837
Less: written off during the year 1,453,607 -
Closing Balance 39,623,679 37,364,962

13.05 Provision for Income Tax*

Opening Balance 2,387,679,130 1,843,445,673
Less: Adjustment made with advance tax during the year - -
Less: Adjustment of surplus provision - -
Add: Provision made during the year 690,119,544 544,233,456
3,077,798,674 2,387,679,130
*Income tax provision has been made as per Income Tax Ordinance 1984 and as amended for the time being .

13.06 Lease liability created due to IFRS 16.

13.07 Interest Suspense Account

Opening Balance 868,462,210 658,322,977
Add: Addition during the year 629,584,773 740,957,406
Less: Written off during the year 2,219,559 -
Less: Recovery during the year 419,071,438 530,818,174
Closing Balance 1,076,755,986 868,462,210

13.08 Provision for Share, Commercial Paper & Bond

Opening Balance 242,941,996 133,713,788
Add: Provision made during the year 20,970,939 109,228,208
Less: Provision transferred to Loans and Advances 102,100,000 -
Closing Balance 161,812,935 242,941,996
14.00 Shareholders' Equity
Paid up Capital (note 15.02) 6,396,697,530 5,696,697,530
Statutory Reserve (note 16.00) 1,881,769,558 1,626,329,243
Revaluation Reserve on Investment in Securities (note 17.00) 3,337,887 1,155,553
Retained Earnings (note 18.00) 868,857,541 322,357,156
9,150,662,516 7,646,539,482
15.00 Capital
15.01 Authorized Capital:
1,000,000,000 ordinary shares of Tk. 10 each 10,000,000,000 10,000,000,000

15.02 Issued, subscribed and Paid-up Capital:

639,669,753 Ordinary shares of Taka 10 each issued for cash. 6,396,697,530 5,696,697,530
6,396,697,530 5,696,697,530
15.03 The break up of Issued, Subscribed and Paid-up Capital is as follows:
December 31, 2023
No. of shares Value of shares % of holding
BDT
Sponsors/Directors 502,970,438 5,029,704,380 78.63%
Institutions 33,387,076 333,870,760 5.22%
Individuals 103,312,239 1,033,122,390 16.15%
639,669,753 6,396,697,530 100%
15.04 Capital Adequacy Ratio
In terms of section 13 (2) of the Bank Company Act 1991 and Bangladesh Bank BRPD circular no. 35 dated December 29, 2010, required capital of the Bank at the
close of business on December 31, 2023 was 12.50% of Risk-Weighted Assets of BDT 53,122,650,192 i.e. BDT 6,640,331,274 or BDT 4,000,000,000, whichever is
higher as against available core capital of BDT 8,578,996,329 and supplementary capital of BDT 599,360,098 making a total capital of BDT 9,178,356,427 thereby
showing a surplus capital of BDT2,538,025,153. Details are given below:
2023 2022
BDT BDT
Total risk weighted assets 53,122,650,192 55,257,430,572
Required Capital : 12.50% of total risk weighted asset or BDT 400 cr, whichever is higher 6,640,331,274 6,907,178,821
Actual capital maintained
Core Capital (Tier-I) :
Paid up Capital 6,396,697,530 5,696,697,530
Statutory Reserve 1,881,769,558 1,626,329,243
Retained Earnings 868,857,541 322,357,156
9,147,324,629 7,645,383,929

Financial Statements
Midland Bank PLC.
223 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023

Particulars 2023 2022

BDT BDT
Deduction from Tier - I (Core Capital)
Intangible Assets 52,197,508 14,779,554
Deferred Tax adjustment 516,130,792 -
8,578,996,329 7,630,604,375
Supplementary Capital (Tier-II) :
General Provision including Off Balance Sheet items 599,360,098 565,391,739
Revaluation Reserve on Investment in Securities - -
599,360,098 565,391,739
Total Capital (Tier-I+Tier-II) 9,178,356,427 8,195,996,114
Surplus 2,538,025,153 1,288,817,293
Capital to Risk Weighted Asset Ratio (CRAR) 17.28% 14.83%

15.04.01 Capital Requirement 2023 2022

Particulars Required
Held Held
Tier-I 8.50% 16.15% 13.81%
Tier-II 4.00% 1.13% 1.02%
Total 12.50% 17.28% 14.83%

16.00 Statutory Reserve

Opening Balance 1,626,329,243 1,408,602,127
Add: Transferred during the year (20% of pre-tax profit ) 255,440,315 217,727,116
Closing Balance 1,881,769,558 1,626,329,243

17.00 Revaluation Reserve on Investment in Securities

Opening Balance 1,155,553 2,446,036
Add: Addition during the year 40,269,913 381,713,247
Less: Adjustment of Revaluation Reserve (38,087,579) (383,003,729)
Closing Balance 3,337,887 1,155,553

18.00 Retained Earnings

Opening Balance 322,357,156 296,515,380
Add: Profit made during the year 1,133,106,643 561,968,829
Less: Transferred to Statutory Reserve (255,440,315) (217,727,116)
Less: Transferred to CSR - (27,945,373)
Less: Transferred to Start Up Fund (11,331,066) (5,619,688)
Less: Dividend paid (319,834,877) (284,834,877)
Closing Balance 868,857,541 322,357,156

18.01 Retained Surplus Brought Forwarded

Opening Balance 322,357,156 296,515,380
Less: Dividend paid (319,834,877) (284,834,877)
2,522,279 11,680,504

19.00 Contingent Liabilities

19.01 Acceptance and endorsements
Foreign 136,768,809 24,215,927
Local 2,576,637,135 2,333,508,585
EPZ 17,305,019 14,814,659
2,730,710,963 2,372,539,171

19.02 Letter of Guarantee

Foreign 228,773,831 6,700,650
Local 5,691,704,699 5,292,479,286
5,920,478,530 5,299,179,936

Financial Statements
Midland Bank PLC.
224 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023

Particulars 2023 2022

BDT BDT
19.02.01 Letter of Guarantee
Money for which the bank is contingently liable in respect of
guarantees given favoring :
Directors - -
Government - -
Bank and other Financial Institutions - -
Others 5,920,478,530 5,299,179,936
5,920,478,530 5,299,179,936

19.03 Irrevocable Letter of Credit

Letter of Credit (Sight) 87,866,865 186,180,459
Letter of Credit (Back to Back/Deferred) 1,454,855,425 827,323,122
Letter of Credit (Cash & Others) 2,367,997,614 2,614,247,050
3,910,719,905 3,627,750,631
19.04 Bills for Collection
Foreign Bill Collection 494,862,666 302,888,189
Local/Inland Bill Collection 900,147,917 1,072,585,461
1,395,010,583 1,375,473,650

13,956,919,981 12,674,943,388
20.00 Income Statement
Income:
Interest, Discount and Similar Income 6,014,541,463 5,002,269,771
Dividend income 101,441,175 110,024,054
Fee, Commission and Brokerage 134,827,519 100,007,306
Gain less losses arising from dealing securities - -
Gain less losses arising from investment securities - -
Gain less losses arising from dealing in Foreign Currencies 549,248,865 636,378,302
Income from non Banking Asset - -
Other Operating Income 132,141,671 98,250,555
Profit less losses on Interest Rate Changes - -
6,932,200,693 5,946,929,988
Expenses
Interest, Fee and Commission 3,740,456,753 3,201,241,945
Losses on Loans and advances - -
Administrative expenses 708,317,991 635,091,994
Other operating expenses 511,428,176 373,167,214
Depreciation on Banking Assets 228,993,508 210,701,684
5,189,196,428 4,420,202,837
Operating profit 1,743,004,265 1,526,727,151

21.00 Interest Income / Profit on Investment

Loans and Advances (note-21.01) 4,361,792,672 3,571,940,430
Money at Call and Short Notice 9,775,989 5,076,775
Balance with Other Banks and Financial Institutions (note-21.02) 128,481,137 79,506,671
Bangladesh Bank Foreign Currency Clearing Account 3,407,628 689,648
4,503,457,426 3,657,213,524

21.01 Interest on Loans and Advances / Profit on Investment

Term Loan 1,478,335,746 1,263,885,949
Overdraft 735,706,186 627,280,470
Time Loan 1,184,340,019 1,039,945,570
Cash Credit 185,915,799 180,720,804
Trust Receipt 248,768,215 137,559,836
Consumer Loan 112,220,667 82,641,466
Payment Against Documents(PAD) 381,040 2,393,558
Agricultural Credit 3,571,053 2,004,953
Bridge Finance - -
EDF Loan 72,129,144 24,795,622
Lease Finance - -
Loan General - -
Loan Against Capital Market - -
Packing Credit 4,587,011 7,862,465
Staff Loan 5,130,775 4,873,690
Other Loans and Advances 58,768,645 14,279,582
Bill Purchased and Discounted 271,938,373 183,696,465
4,361,792,672 3,571,940,430
Less: Expenses for Good Borrower - -
4,361,792,672 3,571,940,430

Financial Statements
Midland Bank PLC.
225 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023

Particulars 2023 2022

BDT BDT
21.02 Interest on Balance with other Bank and Financial Institution
Interest on Balance with other Bank in Bangladesh 128,481,137 79,506,671
Interest on Balance held with outside Bangladesh - -
128,481,137 79,506,671
22.00 Interest Paid on Deposit & Borrowing, etc.
Interest/Profit on Deposit and Other Accounts (note-22.01 ) 2,715,973,205 2,351,933,207
Interest on Borrowing from other Banks and Financial Institutions (note-22.02 ) 1,008,875,269 834,209,744
Interest Paid for Lease Obligation 15,608,279 15,098,994
3,740,456,753 3,201,241,945

22.01 Interest/ Profit on Deposits and Other Accounts

Current Deposit 139,805,844 250,087,743
Special Notice Deposit 217,246,133 248,914,514
Savings Deposits 114,034,910 108,221,726
Fixed Deposits 1,804,950,751 1,388,577,171
Deposit Scheme 439,935,567 356,132,053
2,715,973,205 2,351,933,207

22.02 Interest on Borrowing from other Banks and Financial Institutions

Call Deposits 149,253,112 104,231,662
Local Bank Account 347,342,067 335,056,348
Repurchase agreement (REPO) 322,397,008 254,269,250
Refinance 151,137,958 124,864,905
Foreign Bank Account - -
Bangladesh Bank 38,745,124 15,787,579
1,008,875,269 834,209,744

23.00 Income From Investments

Interest on Treasury Bill, Bond, Reverse Repo 1,606,454,900 1,350,978,270

Interest on Commercial Paper/Bond 37,352,685 44,209,766
Gain/(Loss) on Investment in shares of quoted companies 1,653,506 57,361,286
Gain on Govt. Security Trading (134,377,055) (107,493,076)
Dividend on Investment in Shares 101,441,175 110,024,054
1,612,525,212 1,455,080,301

23.01 Gain on Govt. Security Trading

Gain on Govt. Security Trading 1,896,265,906 2,580,753,123
Loss on Govt. Security Trading (2,030,642,962) (2,688,246,198)
(134,377,055) (107,493,076)

24.00 Commission, Exchange and Brokerage

Commission (note-24.01 ) 134,827,519 100,007,306
Exchange 549,248,865 636,378,302
Brokerage - -
684,076,384 736,385,608

24.01 Commission
Letter of Guarantee 50,020,514 37,300,240
Letter of Credit 41,839,701 31,601,278
Acceptance of Bills 22,078,817 15,858,081
Export Bills 9,676,862 7,415,632
PO, DD & TT 916,614 738,567
OBC/IBC 62,231 97,235
Underwriting Comm. on Treasury Bill/Bond 6,015,790 2,777,665
POS/Easy Pay Commission 4,216,992 4,218,608
134,827,519 100,007,306

Financial Statements
Midland Bank PLC.
226 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023

Particulars 2023 2022

BDT BDT
25.00 Other Operating Income
Postage Charge Recoveries - -
Telephone & Telegram Charge Recoveries - -
VISA Charge 34,367,787 31,311,071
Service and other Charges 55,917,090 30,556,362
SWIFT Charge Recoveries (151,837) 438,997
Charges against cards 6,612,670 5,376,754
Locker Rent 495,050 449,000
Miscellaneous Earnings 27,577,812 23,349,395
LC Charges 7,323,099 6,768,976
132,141,671 98,250,555

26.00 Salary & Allowances

Basic Salary 253,391,431 228,004,529
Allowances 325,706,706 298,139,551
Bonus 65,907,141 51,817,639
Gratuity 25,600,000 21,500,000
Provident Fund 18,494,165 17,030,275
689,099,442 616,491,994

26.01 Managing Director's Remuneration

Basic 12,200,000 11,150,000
Allowances 3,475,000 3,400,000
Festival Bonus 1,850,000 1,850,000
Incentive Bonus 1,000,000 1,000,000
Providend Fund 693,548 1,200,000
19,218,548 18,600,000

27.00 Rent, Tax, Insurance, Electricity, etc.

Rent - 0
Rates & taxes 30,477,419 28,900,403
Insurance 37,293,050 32,191,302
Power, electricity etc 38,420,860 30,945,334
106,191,329 92,037,039

28.00 Legal Expense

Legal Expense 2,330,726 1,690,799
2,330,726 1,690,799

29.00 Postage, Stamps & Telephone, etc

Postage,Stamp & Courier Service 3,145,328 1,889,282
Fax & internet - -
On-line and connectivity charges 16,383,853 14,983,916
Telephone 2,905,247 2,685,076
22,434,428 19,558,274

30.00 Printing, Stationery, Advertisement etc.

Printing & Stationery 42,570,183 28,360,884
Computer Stationery 5,926,900 8,186,196
Publicity & Advertisement 4,405,457 2,886,192
52,902,540 39,433,272

31.00 Directors' Fees

Meeting fee 3,036,000 2,877,600
3,036,000 2,877,600
The Board of Directors is entitled to BDT 8,000/-(excluding VAT) as Board Meeting fee for attending
each Board Meeting as per BRPD Circular Letter # 11 dated October 04, 2015.

32.00 Audit Fee

Audit Fee 460,000 460,000
460,000 460,000

Financial Statements
Midland Bank PLC.
227 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023

Particulars 2023 2022

BDT BDT
33.00 Depreciation on & Repairs to Bank's property
Depreciation :
a) Tangible Assets 64,879,534 66,784,875
Computer and Peripherals 22,929,323 28,904,628
Furniture & Fixture 22,433,480 18,941,452
Office Equipment 17,849,167 16,933,209
Motor Vehicles 1,666,779 2,005,585
Books 785 -

b) Intangible Assets 6,768,826 9,113,464

c) Leased Assets 157,345,149 134,803,345

Total Depreciation (a+b) 228,993,508 210,701,684

Repairs on Bank's property 61,618,361 36,101,968
290,611,869 246,803,651

34.00 Other Expenditure

Security & Auxiliary Service 82,996,819 62,794,542
Office Cleaning & Maintenance 59,102 57,679
Car Expense 5,393,010 5,087,633
Preliminary Expenditure - -
Entertainment 14,190,245 15,378,200
Travelling 2,093,920 1,974,819
Conveyance 5,849,760 5,018,652
Newspaper & Magazines 1,263,810 1,536,476
Q-Cash, ATM Cards, VISA Cards 61,387,856 37,758,662
Medical Expenses 142,452 324,770
Training Expenses 364,252 149,260
Bank Charges 9,013,035 7,964,923
AGM Expenses 257,304 -
Corporate Social Responsibility (CSR) activities 17,879,055 -
IPO Issue Expenses 27,298,936 5,072,765
Business Development Expense 6,727,904 3,776,921
Subscription & Donation 1,915,146 1,548,409
Miscellaneous Expense 25,622,187 32,564,553
262,454,792 181,008,263

35.00 Provision Against Loans and Advances

Provision for Unclassified Loans and Advances 42,169,773 (190,712,133)
Special General Provision -COVID 19 (58,541,581) (15,424,217)
Provision for Classified Loans & Advances 465,692,649 499,978,973
Provision for Off Balance Sheet Items (8,201,414) 3,147,903
Provision for diminution in Investments 20,970,939 109,228,208
Provision for Non-Banking Asset - -
Provision for Other Assets 3,712,324 31,872,837
Total amount of provision made during the year 465,802,690 438,091,571

36.00 Provision for Tax

Current tax 690,119,544 544,233,456
Deferred tax* (note 9.06) (546,024,612) (17,566,707)
Total 144,094,932 526,666,750

* Deferred tax has been calculated as per "IAS:12 Income Taxes" and it is the timing differences arising
between the carrying value of gratuity liability & fixed assets.
37.00 Statutory Reserve
Transferred during the year 255,440,315 217,727,116
Add: Adjustment of previous year - -
255,440,315 217,727,116

Financial Statements
Midland Bank PLC.
228 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023

Particulars 2023 2022

BDT BDT
38.00 Provision for CSR
Corporate Social Responsibility (CSR) activities - 27,945,373
- 27,945,373

39.00 Net Asset Value Per Share (NAV)

Net Asset Value 9,150,662,516 7,646,539,482

Number of ordinary shares outstanding 639,669,753 639,669,753
Net Asset Value Per Share (NAV) 14.31 11.95

40.00 Earning Per Share (EPS):*

Net Profit After Tax 1,133,106,643 561,968,829
Number of Ordinary Shares outstanding 639,669,753 639,669,753
Earning Per Share (EPS) 1.77 0.88

*Earnings per share has been calculated in accordance with IAS-33: Earnings Per Share (EPS).

41.00 Net Operating Cash Flow Per Share

Net Operating Cash Flow 351,708,108 2,402,403,193

Number of ordinary shares outstanding 639,669,753 569,669,753
Net Operating Cash Flow Per Share 0.55 4.22

42.00 Received from Other Operational Income

VISA Charge 34,367,787 31,311,071

Service and other Charges 55,917,090 30,556,362
SWIFT Charge Recoveries (151,837) 438,997
Charges against cards 6,612,670 5,376,754
Locker Rent 495,050 449,000
Miscellaneous Earnings 27,577,812 23,349,395
LC Charges 7,323,099 6,768,976
132,141,671 98,250,555

43.00 Payment for Other Operational Expenses

Rent, Tax, Insurance, Electricity 106,191,329 92,037,039
Legal Expense 2,330,726 1,690,799
Postage, Stamps, Telegram & Telephone 22,434,428 19,558,274
Audit fee 460,000 460,000
Printing, Stationery, Advertisement 52,902,540 39,433,272
Directors' Fee 3,036,000 2,877,600
Repair & Maintenance 61,618,361 36,101,968
Other Expenditure 262,454,792 181,008,263
511,428,176 373,167,214

44.00 Related Party transaction Disclosures of the Bank

i) Name of the Directors together with a list of entities in wich they have interest Annexure- D

ii) Significant contracts where Bank is a party and wherein Directors have interest during the year 2023:

Name of the party Relationship Nature of Amount

Nil

iii) Share issued to Directors and Executives without consideration or exercisable at a discount Nil

Financial Statements
Midland Bank PLC.
229 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023

Particulars 2023 2022

BDT BDT
iv) Related Party Transaction:

Name Relationship Nature of Limit Outstanding Loan Amount

Mr. Kazi Shayan Ekramullah Director Credit Card 500,000 14,488
Mr. A.K.M Badiul Alam Director Credit Card 500,000 78,128
Mr. Md. Wahid Miah Director Credit Card 500,000 318,286
Mr. Md Jahangir Miah Family member of Director Credit Card 500,000 371,862
Mr. Kazi Zafar Ullah Sponsor Shareholder Credit Card 500,000 150
Mrs. Nilufer Zafarullah Director Credit Card 500,000 159,320
Mrs. Anushka Mehreen Zafar Director Credit Card 500,000 95,129
Mr. Zobaida Mahaboob Latif Family member of Director Credit Card 500,000 3,373
Mr. Mohammed Jamal Ullah Director Credit Card 500,000 203,171
Mrs. Susmita Sompa Family member of Director Credit Card 500,000 410
Mrs.Sabiha Mahboob Family member of Director Credit Card 500,000 294,516
Mr. Abdullah Ahmed Yousuf Sponsor Shareholder Credit Card 500,000 309,638
Mr. Kazi Raihan Zafar Director Credit Card 500,000 406,117
Mr. Manshood Alam Family member of Director Credit Card 500,000 29,393
Mr. Md Wazed Jamil Family member of Director Credit Card 500,000 49,831
Sub-Total (A) 2,333,811

v) Lending policies to related parties: Lending to related parties is affected as per requirement of section 27(1) of the Bank company Act 1991.

Loans and advances to concern related to directors:

Name Relationship Nature of Limit Outstanding Loan Amount

Sub-Total (B) -
Total (C=A+B) 2,333,811

vii) Business other than banking business with any related concern of the Directors as per section 18(2) of the Bank Company Act 1991:

Lease agreement made with the Director

Name Nature of Name of Party Amount
Mrs. Nilufer Zafarullah, Chairman Office Rent Hong Kong Shanghi Tower 27,945,041
Mrs. Lutfa Begum,Director Office Rent Helal Tower 1,498,128
Mrs. Lutfa Begum,Director ATM Booth Rent Hazrat Amanat Shah Spinning Mills Ltd. Free of Cost
Mr. A. K.M Badiul Alam, Director ATM Booth Rent KASBA Tower Free of Cost
Mr. A. K.M Badiul Alam, Director ATM Booth Rent MAA Tower Free of Cost
Mr. Rezaul Karim, Director Collection Booth Southeast University Free of Cost

Goods procured from the concern related with the Director

Name Procurement Type Company Name Amount

viii) Investment in securities of Directors and their related concern Nil

Financial Statements
Midland Bank PLC.
230 Annual Report 2023
Midland Bank PLC.
Notes to the Financial Statements
For the year ended 31 December 2023

Particulars 2023 2022

BDT BDT
45.00 Number of employees and support staffs
Employee
Regular employee 515 488
Contractual employee 292 239
807 727
Support staff
Security 373 311
Messenger and cleaning staff 156 155
529 466
1336 1193

46.00 Others

46.01 The expenses, irrespective of capital or revenue nature, accrued or due but not paid have been provided for in the books of the Bank.

46.02 Figures relating to the previous year included in this report have been rearranged, wherever considered necessary, to make them comparable with

46.03 These notes form an integral part of the annexed financial statements and accordingly are to be read in conjunction therewith.

for and on behalf of Board of Directors of Midland Bank PLC.

________________________ ________________________ ________________________ ________________________

Md. Ahsan-uz Zaman Rezaul Karim Nazimuddin Chowdhury Nilufer Zafarullah
Managing Director & CEO Director Director Chairman

Financial Statements
Midland Bank PLC.
231 Annual Report 2023
 Midland Bank PLC. Annexure-A
Balance with other Banks- Out Side Bangladesh (NOSTRO Account)
Currency wise position and Exchange rate applied for conversion of Balance with other Banks in Foreign Currency into Local currency as on 31 December 2023

Financial Statements
2023 2022
SL Name of the Bank Account Type Currency
Foreign Currency Exchange Rate BDT Foreign Exchange Rate BDT
1 AB Bank, Mumbai Branch CD US$ 635,926.07 110.00 69,951,868 29,456.70 103.29 3,042,662
2 Punjab National Bank CD US$ 127,804.19 110.00 14,058,461 387,354.78 103.29 40,010,921
3 Axix Bank Limited CD US$ 153,197.54 110.00 16,851,729 53,267.06 103.29 5,502,098
4 National Bank of Pakistan, Tokyo Japan CD JPY 2,286,178.00 0.78 1,773,160 2,286,178.00 0.77 1,756,013
5 Mashreq Bank Psc, NY CD US$ (1,210,281.55) 110.00 (133,130,971) 30,726.85 103.29 3,173,859
6 Mashreq Bank Psc, NY OBU CD US$ 191,525.47 110.00 21,067,802 286,353.01 103.29 29,578,176
7 Kookmin Bank, South Korea CD GBP 95,289.02 140.73 13,410,405 10,506.18 124.09 1,303,665

Midland Bank PLC.

8 Habib American Bank, NY CD US$ (18,372.42) 110.00 (2,020,966) 145,200.87 103.29 14,998,190
9 NIB Bank, Pakistan CD US$ 15,737.65 110.00 1,731,142 4,538 103.29 468,739
10 Aktif Yatirim Bank CD US$ 81.22 110.00 8,934 2,251 103.29 232,530

232
11 Aktif Yatirim Bank CD EURO 28,554.64 122.13 3,487,464 57,341 109.57 6,283,038
12 Aktif Yatirim Bank CD GBP 2,284.80 140.73 321,549 47,385 124.09 5,879,737
13 Banca UBAE Italy CD EURO 14,980.62 122.13 1,829,628 2,472 109.57 270,875
14 Banca UBAE Italy CD GBP - 140.73 - 3,875 124.09 480,855
15 Kookmin Bank, South Korea CD US$ 22,719.87 110.00 2,499,186 615 103.29 63,482
16 Sonali Bank CD US$ 26.03 110.00 2,863

Annual Report 2023

17 Sonali Bank CD EURO 1,080.00 122.13 131,904
11,974,157 113,044,841
 Midland Bank PLC.
Annexure-B (Regular)
Investment in Quoted Share of the Bank
As at December 31, 2023
Cost Holding Average Cost Cost Holding Quoted rate per Total Market Value of
Face Value
SL Name of the Company No. of Shares (Without (Without (With Share as on Share as at December
Per Share
Commission) Commission) Commission) December 31, 2023 31, 2023
Quoted:
1 AAMRATECH 10 867490 43,430,738 50.06 43,538,826 30.50 26,458,445
2 AAMRANET 10 550,000 42,395,677 77.08 42,485,893 51.30 28,215,000
3 ADNTEL 10 25700 3,430,393 133.48 3,439,992 117.10 3,009,470
4 BATBC 10 74600 41,539,139 556.82 41,641,201 518.70 38,695,020
5 BBSCABLES 10 46,690 3,699,704 79.24 3,712,653 49.90 2,329,831
6 BRACBANK 10 1,722,612 75,431,758 43.79 75,605,135 35.80 61,669,510
7 BSCCL 10 372,615 73,045,603 196.04 73,211,405 218.90 81,565,424
8 CONFIDCEM 10 92,872 13,210,367 142.24 13,240,090 89.00 8,265,608
9 DOREENPWR 10 1915200 128,691,614 67.19 128,994,260 61.00 116,827,200
10 GP 10 96197 38,291,840 398.06 38,390,586 286.60 27,570,060
11 GPHISPAT 10 1224024 58,452,349 47.75 58,598,393 42.70 52,265,825
12 IFADAUTOS 10 247,770 13,594,182 54.87 13,624,769 44.10 10,926,657

Midland Bank PLC.

13 INTRACO 10 188225 7,283,342 38.69 7,298,637 40.50 7,623,113
14 LHBL 10 1520000 116,523,483 76.66 116,798,924 69.30 105,336,000
15 MARICO 10 4,500 10,325,638 2294.59 10,350,026 2460.70 11,073,150
16 POWERGRID 10 1109000 75,877,202 68.42 76,052,457 52.40 58,111,600

233
17 PREMIERCEM 10 60,000 3,963,733 66.06 3,972,056 53.60 3,216,000
18 RENATA 10 5,403 6,029,573 1115.97 6,044,647 1217.90 6,580,314
19 SQURPHARMA 10 255000 58,235,186 228.37 58,376,074 210.30 53,626,500
20 UNIONINS 10 29 290 10.00 290 56.10 1,627
21 UPGDCL 10 3,400 861,438 253.36 863,592 233.70 794,580
Total 814,313,250 816,239,906 704,160,932

Annual Report 2023

Cost Holding of Quoted Share (Without Commission) 814,313,250
Market Value of Quoted Share 704,160,932
Diminution Value in Investment 110,152,317

Investment in Open End Mutual Fund of the Bank

As at December 31, 2023
Cost Holding Average Cost Cost Holding
NAV as on Total Market Value as
SL Name of Mutual Fund Face Value No. of units (Without (Without (With
December 31, 2023 at December 31, 2023
Commission) Commission) Commission)
1 Ekush Growth Fund 10 2000000 20,000,000 10.00 20,000,000 10.34 20,684,000
2 EDGE High Quality Income Fund 10 2000000 20,000,000 10.00 20,000,000 10.46 20,920,000

Financial Statements
3 UCB Taqwa Growth Fund 10 2000000 20,000,000 10.00 20,000,000 10.21 20,420,000
4 UCB Income plus Fund 10 5000000 50,000,000 10.00 50,000,000 10.37 51,826,000
5 Ekush Stable Return Fund 10 429611 4,565,480 10.63 4,565,480 10.68 4,588,245
Total 114,565,480 114,565,480 118,438,245
 Midland Bank PLC. Annexure-B (Special Fund)
Investment in Quoted Share of the Bank (Under Special Fund)
As at December 31, 2023

SL Name of the Company Face Value No. of Cost Holding Average Cost Cost Holding Quoted rate Total Market Value
per Share Shares (Without (Without (Without per Share as on of Share as at
Commission) Commission) Commission) December 31, December 31,
2023 2023

Financial Statements
1 BERGERPBL 10 9,140 16,121,875 1763.88 16,158,149 1774.00 16,214,360
2 BRACBANK 10 3,585,770 147,704,333 41.19 147,951,690 35.80 128,370,566
3 BSCCL 10 599,240 130,645,123 218.02 130,930,984 218.90 131,173,636
4 BXPHARMA 10 456,000 89,697,146 196.70 89,876,541 146.20 66,667,200
5 GP 10 113,579 37,387,033 329.17 37,500,924 286.60 32,551,741
6 IFADAUTOS 10 277,200 17,586,574 63.44 17,626,143 44.10 12,224,520
7 INTRACO 10 291,000 12,057,800 41.44 12,084,411 40.50 11,785,500
8 ITC 10 1,485,000 64,548,032 43.47 64,696,614 37.00 54,945,000
9 LHBL 10 89,000 6,815,010 76.57 6,830,344 69.30 6,167,700

Midland Bank PLC.

10 MARICO 10 19,941 44,936,668 2253.48 45,038,095 2460.70 49,068,819
11 SPCL 10 156,000 14,739,026 94.48 14,768,504 65.50 10,218,000
12 POWERGRID 10 200,000 14,329,871 71.65 14,362,113 52.40 10,480,000

234
13 SINGERBD 10 79,224 13,424,667 169.45 13,460,173 151.90 12,034,126
14 SQURPHARMA 10 517,393 110,778,126 214.11 111,055,612 210.30 108,807,748

Total 720,771,285 722,340,296 650,708,916

Cost Holding of Quoted Share under special fund (Without Commission) 720,771,285

Annual Report 2023

Market Value of Quoted Share under special fund 650,708,916
Diminution Value in Investment in Quoted Share under special fund 70,062,369

Investment in Open End Mutual Fund of the Bank(Under Special Fund)

As at December 31, 2023
SL Name of Mutual Fund Face Value No. of Units Cost Holding Average Cost Cost Holding NAV as on Total Market
(Without (Without (Without December 31, Value as at
Commission) Commission) Commission) 2023 December 31, 2023
1 Ekush First Unit Fund 10 1,786,348 23,088,898 12.9252 23,088,898 12.4380 22,218,596
2 VIPB NLI 1st Unit Fund 10 1,301,985 11,812,606 9.0728 11,835,044 9.5600 12,446,977
3 VIPB Accelerated Income Unit Fund 10 2,275,224 27,500,000 12.0867 27,500,000 11.1100 25,277,739
Total 62,401,504 62,423,942 59,943,312

As per DOS Circular no 01, date February 10, 2020 provision forDiminution Value of Investment under special fund is exempted up to February 2025.
 Midland Bank PLC. Annexure-C
Fixed Asset Schedule
As at 31 December 2023

Cost Depreciation Written down

Balance as at Addition Adjustment Balance as at Balance as at Charged for Adjustment Balance as at value as at
Asset Category
during the / Rate
01.01.2023 year Disposal 31.12.2023 01.01.2023 the year /Disposal 31.12.2023 31.12.2023

BDT BDT BDT BDT BDT BDT BDT BDT BDT

Own Assets
Computer & Peripherals 231,166,776 66,422,011 1,739,756 295,849,031 20% 194,118,026 22,929,323 1,739,688 215,307,661 80,541,371
Furniture & Fixture 189,421,047 53,043,859 2,794,547 239,670,360 10% 103,233,206 22,433,480 2,524,442 123,142,245 116,528,115
Office Equipment 187,706,177 26,664,986 1,649,892 212,721,271 20% 157,622,562 17,849,167 1,649,871 173,821,857 38,899,414
Motor Vehicles 26,094,193 9,981,000 4,950,000 31,125,193 20% 21,984,593 1,666,779 4,949,999 18,701,373 12,423,820
Books 20,260 - - 20,260 20% 19,475 785 - 20,260 (0)
Intangible Assets 64,713,819 44,186,779 - 108,900,598 20% 49,934,265 6,768,826 - 56,703,090 52,197,508

Midland Bank PLC.

Sub-Total 699,122,273 200,298,636 11,134,195 888,286,714 526,912,127 71,648,359 10,864,000 587,696,487 300,590,227
Leased Assets

235
Right of Use Assets 768,320,720 65,044,675 - 833,365,395 365,860,962 157,345,149 - 523,206,111 310,159,284
Sub-Total 768,320,720 65,044,675 - 833,365,395 365,860,962 157,345,149 - 523,206,111 310,159,284
Grand Total 1,467,442,993 265,343,311 11,134,195 1,721,652,109 892,773,090 228,993,508 10,864,000 1,110,902,598 610,749,511

Total 2022 1,318,750,486 153,030,817 4,338,310 1,467,442,993 685,234,077 210,701,684 3,162,671 892,773,090 574,669,903

Annual Report 2023

Financial Statements
 Annexure-D
Midland Bank PLC.
Name of the Complanies in which the Directors of the Bank have interest
Sl. Name of the Directors Status with MDB Entities where they have interest Designation
1 Mrs. Nilufer Zafarullah Chairman Hong Kong Shanghai Manjala Textiles Ltd. Director
1. Micro Fibre Limited 1. Managing Director
2. Orient Chem-Tex Limited 2. Managing Director
3. Liberty Knitwear Limited 3. Managing Director
4. Midland Knitwear Limited 4. Managing Director
5. A-One Polar Limited 5. Managing Director
6. Tubingen Chemicals (BD) Limited 6. Managing Director
7. Sungarh Tex Limited 7. Managing Director
8. Micro Trims Limited 8. Managing Director
2 Mr. Md. Shamsuzzaman Vice Chairman
9. Micro Logistics Limited 9. Managing Director
10. Shahzi Bazar Power Co. Ltd. 10. Managing Director
11. Petromax Refinery Ltd. 11. Sponsor Director
12. Harmony Chem Limited 12. Managing Director
13. Harmony Colour Limited 13. Managing Director
14. Gulshan Spinning Mills Ltd. 14. Managing Director
15. Mahmuda Hai Chemi Ltd. 15. Managing Director
16. MICLO Bangladesh Ltd. 16. Managing Director
1. Mother Steel & Oxygen Limited 1. Chairman
2. Chairman
2. Sea Force Alliance Ltd.
3. Managing Director
3. Mother Steel Limited
3 Mr. Master Abul Kashem Director 4. Managing Partner
4. MAK Corporation
5. Proprietor
5. Master Steel Re -Rollin g Mills
6. Shareholder
6. AIBL Capital Market Services Ltd.
1. Kalypso Ltd. 1. Chairman
5 Mr. Kazi Omar Zafar Director 2. Hong Kong Shanghai Manjala Power Ltd. 2. Managing Director
3. Hong Kong Shang hai Manjala Textiles Ltd. 3. Director
1. Agricultural Marketing Company Limited 1. Chairman
2. Rangpur Foundry Limited 2. Chairman
3. Advance Personal Care Limited 3. Director
4. Kaliganj Agro Processing Limited 4. Director
5. Banga Bakers Limited 5. Director
6. Banga Millers Limited 6. Director
7. Chorka Textile Limited 7. Director
8. Habiganj Agro Limited 8. Director
9. Mymensingh Agro Limited 9. Director
10. PRAN Agro Limited 10. Director
11. PRAN Beverage Limited 11. Director
12. PRAN Dairy Limited 12. Director
Mr. Ahsan Khan
6 Director 13. PRAN Exports Limited 13. Director
Chowdhury
14. PRAN Foods Limited 14. Director
15. Packmat Industries Limited 15. Director
16. Sylvan Technologies Limited 16. Director
17. Gonga Foundry Limited 17. Director
18. Get Well Limited 18. Director
19. Allplast Bangladesh Limited 19. Director
20. Banga Building Materials Limited 20. Director
21. RFL Electronics Limited 21. Director
22. Rangpur Metal Industries Limited 22. Director
23. RFL Plastics Limited 23. Director
24. Durable Plastics Limited 24. Director
25. Property Development Limited 25. Director
26. AKC (Pvt.) Limited 26. Chairman
27. Durable Petro Chemical Limited 27. Director

Financial Statements
Midland Bank PLC.
236 Annual Report 2023
 Annexure-D
Midland Bank PLC.
Name of the Complanies in which the Directors of the Bank have interest
Sl. Name of the Directors Status with MDB Entities where they have interest Designation
1. Al-Haj Karim Textiles Ltd. 1. Managing Director
2. Karim Tex Limited 2. Managing Director
3. Abdul Karim Ltd. 3. Managing Director
4. Jobaida Karim Jute Mills Limited 4. Managing Director
5. Wahid Construction Ltd 5. Managing Director
6. Karim Shipping Lines Limited 6. Managing Director
7. Karim Asphalt & Ready Mix Ltd. 7. Managing Director
8. Karim Dregers Limited 8. Managing Director
7 Mr. Md. Wahid Miah Director
9. Hypoid Composite Knit Ltd. 9. Director
10. Karim Jute Spinners Ltd. 10. Director
11. Karim Logistics Limited 11. Proprietor
12. M/s Md. Wahid Miah 12. Proprietor
13. Karim Trading 13. Proprietor
14. Jobaida Filling Station 14. Proprietor
15. J.K Filling Station 15. Proprietor
16. Karim Filling Station 16. Proprietor
1. Bangla TelLtd. 1. Chairman
2. Jibondhara Solutions Ltd. 2. Chairman
3. BD Link Communications Ltd. 3. Chairman
4. Kohinoor Chemical Co. (BD) Ltd. 4. Managing Director
5. Reedisha Knitex Ltd. 5. Managing Director
8 Mr. Rezaul Karim Director
6. Reedisha Textipe Ltd. 6. Managing Director
7. Reedisha Spinning Ltd. 7. Managing Director
8. P.A Knit Composite Ltd. 8. Managing Director
9. Reedisha Printing and Packaging Ltd. 9. Managing Director
10. Reedisha Blended Yarn Ltd. 10. Managing Director
1. Garments Export Village Ltd. 1. Chairman
2. Amranet Ltd. 2. Chairman
3. Bravo Apparel Manufacturer Ltd. 3. Director
09 Mr. A.K.M. Badiul Alam Director
4. Shahjibazar Power Co. Ltd. 4. Director
5. Eden Multicare Hospital Ltd. 5. Director
6. Petromax Refinery Ltd. 6. Director
1. Explore Lingerie Limited 1. Managing Director
2. Shahzaib Washing & Dying Ltd. 2. Managing Director
3. Ha-Meem Travel Limited 3. Shareholder
10 Mr. Md. Kamal Hossain Director
4. Fauji Chatkal Limited 4. Shareholder
5. M H Sports Wear Limited 5. Shareholder
6. M H Design Limited 6. Shareholder
1. Bango Engineering Co. Ltd. 1. Executive Director
11 Mrs. Shahnaj Parveen Director 2. Next Coll ection Ltd. 2. Shareholder
3. Next Garments Ltd. 3. Shareholder
1. Legato Service Ltd. 1. Managing Director
2. Beq Knit Ltd. 2. Managing Director
3. Beq Sweaters Ltd. 3. Managing Director
4. Beq Fabrics (Pvt.) Ltd. 4. Managing Director
Mr. Hafizur Rahman
12 Director 5. C.K Sweaters Ltd. 5. Managing Director
Sarker
6. Tammam Design Limited 6. Managing Director
7. Lusaka Fashions Limite d 7. Managing Director
8. Tista Dredgers & Constructions Ltd 8. Managing Director
9. Hafizur Rahman Sarker 9. Proprietor

Financial Statements
Midland Bank PLC.
237 Annual Report 2023
 Annexure-D
Midland Bank PLC.
Name of the Complanies in which the Directors of the Bank have interest
Sl. Name of the Directors Status with MDB Entities where they have interest Designation
1. Eco Intimates Ltd. 1. Chairman
2. Montex Fabrics Ltd. 2. Managing Director
3. Mark Sweater Ltd. 3. Managing Director
4. Montrims Ltd. 4. Managing Director
5. Mondol Yearn Dyeing Ltd. 5. Managing Director
6. Mondol Fabrics Ltd. 6. Managing Director
7. Cotton Field (BD) Ltd. 7. Managing Director
8. Mondol Securities Ltd. 8. Managing Director
9. Mondol Knitwears Ltd. 9. Managing Director
10. Alim Knit (BD) Ltd. 10. Managing Director
11. Mondol Knit Tex Ltd. 11. Managing Director
12. Cotton Club (BD) Ltd. 12. Managing Director
13. Cotton Clout (BD) Ltd. 13. Managing Director
14. Trims International (BD) Ltd. 14. Managing Director
Mr. Abdul Momin 15. Appollo Fashions Ltd. 15. Managing Director
13 Directo r
Mondol, M.P 16. Appollo Packaging (BD) Ltd. 16. Managing Director
17. Appollo Knitwear (BD) Ltd. 17. Managing Director
18. Mondol & Co. Ltd. 18. Managing Director
19. Cotton Clothing (BD) Ltd 19. Managing Director
20. Mondol Intimates Ltd. 20. Managing Director
21. Mondol Fashions Ltd. 21. Managing Director
22. Tropical Knittex Ltd. 22. Managing Director
23. Knitex Dresses Ltd. 23. Managing Director
24. Mondo l Spinning Mills Ltd. 24. Managing Director
25. Mondol Knit Composite Ltd. 25. Managing Director
26. Mondol Auto Bricks Limited 26. Managing Director
27. Uttara Poultry Complex Ltd. 27. Managing Director
28. Mbrella Ltd. 28. Managing Director
29. Panama Agro Complex Ltd. 29. Managing Director
30. Haji-Abdul Majid Mondol Foundation 30. Executive Director
1. Popular Pharmaceuticals Ltd. 1. Managing Director
2. Popular Diagnostic Center Ltd. 2. Managing Director
14 Dr. Mostafizur Rahman Director
3. Popular Specialized Hospital Ltd. 3. Managing Director
4. Popular Medical College and Hospital Ltd. 4. Managing Director
15 Mr. Kazi Raihan Zafar Director Hong Kong Shanghai Manjala Textiles Ltd. Director
Ms. Anushka Mehreen
16 Director Hong Kong Shanghai Manjala Textiles Ltd. Director
Zafar
Mr. Mahbubul Hady Independent
17 -- --
Fazle Rab Director
Mr. Nazim Uddin Independent
18 - -
Chowdhury Director
Mr. Khandhaker Tanveer Independent
19 - -
Shamsul Islam Director
Mr. Mohammad Asif-uz- Independent
20 - -
Zaman Director

Financial Statements
Midland Bank PLC.
238 Annual Report 2023
 Annexure-E
Midland Bank PLC.
Name of the Directors and their shareholding as at December 31, 2023

Sl. Name Status No. of Shares Percentage

1 Mrs. Nilufer Zafarullah Chairman 1,27,93,396 2.00 %

2 Mr. Md. Shamsuzzaman Vice Chairman 2,99,07,662 4.68%

3 Mr. Master Abul Kashem Director 2,63,73,600 4.12%

4 Mr. Kazi Omar Zafar Director 1,27,93,396 2.00%

5 Mr. Ahsan Khan Chowdhury Director 2,84,83,488 4.45%

6 Mr. Md. Wahid Miah Director 2,84,83,488 4.45%

7 Mr. Rezaul Karim Director 2,84,83,488 4.45%

8 Mr. A.K.M. Badiul Alam Director 19,208,277 3.00%

9 Mr. Md. Kamal Hossain Director 2,84,83,488 4.45%

10 Mrs. Shahnaj Parveen Director 2,84,83,488 4.45%

11 Mr. Abdul Momin Mondol M.P Director 2,84,83,488 4.45%

12 Mr. Hafizur Rahman Sarker Director 2,70,59,313 4.23%

13 Dr. Mostafizur Rahman Director 2,84,83,488 4.45%

14 Mr. Kazi Raihan Zafar Director 1,27,93,396 2.00 %

15 Mr. Abdullah Ahmed Yousuf Director 3,13,31,837 4.90%

16 Mr. Mahbubul Hady Fazle Rab Independent Director - -

17 Mr. Nazim Uddin Chowdhury Independent Director - -

18 Mr. Khandhaker Tanveer Shamsul Islam Independent Director - -

19 Mr. Mohammad Asif -uz -Zaman Independent Director - -

Financial Statements
Midland Bank PLC.
239 Annual Report 2023
 Annexure-F
Midland Bank PLC.
Financial Highlights
For the year ended 31 December 2023

SLNo. Items 2023 2022

1 Paid up Capital 6,396,697,530 5,696,697,530
2 Total Capital 9,178,356,427 8,195,996,114
3 Surplus in Capital Fund 2,538,025,153 1,288,817,293
4 Total Asset 83,425,869,144 79,866,865,819
5 Total Deposit 60,302,724,245 57,763,010,073
6 Total Loans and Advances 54,862,657,994 52,792,807,266
7 Total Contingent Liabilities 13,956,919,981 12,674,943,388
8 Lending-Deposit Ratio 84.51% 81.71%
9 Classified Loans as % of Total Loans and Advances 3.81% 2.78%
10 Profit After Provision and Tax 1,133,106,643 561,968,829
11 Total Classified loans and advances 2,091,566,508 1,469,651,458
12 Total Provision Maintained against Classified Loans 1,448,788,189 954,672,048
13 Surplus/(deficit) in Provision against Classified Loans - -

14 Cost of Fund 7.83% 6.38%

15 Earning Asset 72,679,819,582 70,816,914,494
16 Non-Interest Earning Asset 10,746,049,562 9,049,951,325
17 Return on Investments (ROI) 13.49% 7.47%
18 Return on Asset (ROA) 1.39% 0.75%
19 Income from Investment 1,612,525,212 1,455,080,301
20 Earnings per Share (BDT) 1.77 0.88
21 Net Income per Share (BDT) 1.77 0.88
22 Price-Earning Ratio (Times) 8.13 N/A

Financial Statements
Midland Bank PLC.
240 Annual Report 2023
 Annexure-G
Midland Bank PLC.
Balance Sheet of Islami Banking Wing
As at 31 December 2023

Particulars Notes 2023 2022

BDT BDT

Property and Asset

Cash 1.00 321,529,134 388,397,473
In Hand (Including Foreign Currency) 1,609,823 5,207,078
With Bangladesh Bank and its agent Bank (including Foreign Currency) 319,919,311 383,190,395

Balance with other Banks & Financial Institutions 2.00 239,369 3,406,935
In Bangladesh 239,369 3,406,935
Outside Bangladesh - -

Money at Call and Short Notice - -

Investments in Shares & Securities 3.00 620,202,616 216,650,000

Government 620,202,616 216,650,000
Others - -

Investments 4.00 2,545,677,840 2,297,918,314

General Investment 2,545,677,840 2,297,918,314
Bills Purchased and Discounted - -

Fixed Asset including Premises, Furniture & Fixtures 296,863 307,648

Other Asset 5.00 105,565,701 66,095,661

Non-Banking Asset - -
Total Property and Asset 3,593,511,524 2,972,776,030

Liabilities and Capital

Borrowing from other Banks, Financial Institutions & Agents

Deposit and Other Accounts 6.00 3,569,728,330 2,952,893,520
Current Deposit & Other Accounts 20,616,610 44,993,075
Bills Payable 1,790,875 -
Short Notice Deposit 298,965,604 327,561,504
Savings Deposit 243,862,543 182,618,441
Fixed Deposit 2,942,944,423 2,358,835,634
Deposit Scheme 61,548,275 38,884,867

Other Liabilities 7.00 23,783,194 19,882,511

Total Liabilities 3,593,511,524 2,972,776,030

Capital/Shareholders' Equity
Paid up Capital - -
Statutory Reserve - -
Revaluation Reserve on Investment in Securities - -
Retained Earnings - -
Total Shareholders' Equity - -
Total Liabilities and Shareholders' Equity 3,593,511,524 2,972,776,030

Off-Balance Sheet Items

Contingent Liabilities 8.00
Acceptance and endorsements - -
Letter of Guarantee 552,500,000 502,700,000
Irrevocable Letter of Credit - -
Bills for Collection - -
Other Contingent Liabilities - -
552,500,000 502,700,000

Total Off Balance Sheet Items including Contingent Liabilities 552,500,000 502,700,000

Financial Statements
Midland Bank PLC.
241 Annual Report 2023
 Annexure-G1
Midland Bank PLC.
Profit and Loss Account of Islami Banking Wing
For the year ended 31 December 2023

Particulars Notes 2023 2022

BDT BDT
Particulars

Profit on Investment 9.00 207,189,622 191,687,149

Less: Profit Paid on Deposit and Borrowing, etc. 10.00 197,223,550 176,043,141
Net Interest Income 9,966,072 15,644,008

Income from Investment 11.00 9,159,973 9,155,737

Commission, Exchange and Brokerage 12.00 2,220,135 2,011,264
Other Operating Income 622,905 433,680
12,003,013 11,600,682
Total Operating Income 21,969,085 27,244,690

Less: Operating Expenditure

Salary and Allowances 13.00 2,705,807 1,904,419
Rent, Tax, Insurance, Electricity 38,495 42,962
Legal Expense - -
Postage, Stamps and Telephone 16,955 10,350
Printing, Stationery, Advertisement 14.00 143,854 87,840
Managing Director's Remuneration - -
Directors' Fee 35,200 44,000
Audit Fee -
Depreciation on and Repair to Bank's Property 111,365 71,393
Other Expenditure 344,545 131,188
Total Operating Expenses 3,396,220 2,292,151
Profit Before Provision & Tax 18,572,866 24,952,539

Financial Statements
Midland Bank PLC.
242 Annual Report 2023
 Annexure-G2
Midland Bank PLC.
Notes to the Financial Statements of Islami Banking Wing
For the year ended 31 December 2023

Particulars Notes 2023 2022

BDT BDT

1.00 Cash
In Hand (Including foreign currency) (note 3.01) 1,609,823 5,207,078
Balance with Bangladesh Bank and its Agent Bank (note 3.02) 319,919,311 383,190,395
321,529,134 388,397,473
1.01 In Hand (Including foreign currency)
Local Currency 1,609,823 5,207,078
Foreign Currency - -
1,609,823 5,207,078

1.02 Balance with Bangladesh Bank and its Agent Bank

With Bangladesh Bank
Local Currency 319,919,311 383,190,395
Foreign Currency - -
With Sonali Bank (as agent of Bangladesh Bank-Local Currency) - -
319,919,311 383,190,395
2.00 Balance with other Banks and Financial Institutions
In Bangladesh 239,369 3,406,935
Outside Bangladesh - -
239,369 3,406,935
3.00 Investments
Government (note 3.01) 620,202,616 216,650,000
Others - -
620,202,616 216,650,000
3.01 Investment Classified as per Bangladesh Bank Circular
Held to Maturity (HTM)
Held for Trading ( HFT) - -
Reverse Repo - -
Prize Bond - -
Government Securites Encumbered - -
Government Securites -SUKUK Bond 196,650,000 196,650,000
Other Investments 423,552,616 20,000,000
620,202,616 216,650,000
4.00 Investments
Bai-Murabaha 787,290,004 883,450,122
Bai-Muajjal 2,330,516 19,319,212
Hire Purchase Shirkatul Melk 1,756,057,319 1,392,845,980
Qardh Against Local Bill 2,303,000
Bills Purchased and Discounted - -
2,545,677,840 2,297,918,314

Financial Statements
Midland Bank PLC.
243 Annual Report 2023
 Annexure-G2
Midland Bank PLC.
Notes to the Financial Statements of Islami Banking Wing
For the year ended 31 December 2023

Particulars Notes 2023 2022

5.00 Other Asset BDT BDT
Classification of Other Asset
Profit receivable on Investment 4,577,869 11,260,824
Advance Tax 4,931,883 717,820
Inter Bank General Account Balance (note 7.01) 96,055,949 54,117,016
Profit receivable on Deposit with Other Bank -
Total Other Asset 105,565,701 66,095,661
6.00 Deposit and Other Accounts
From Banks 1,647,695 33,059,280
From Customers (note 6.01) 3,566,289,760 2,919,834,240
3,567,937,455 2,952,893,520
6.01 Customer Deposit and Other Accounts:
Current Deposit & Other Accounts :
Current Deposit 14,541,122 25,447,348
Sundry Deposit 6,075,488 19,545,727
20,616,610 44,993,075
Bills Payable 1,790,875 -
Short Notice Deposit 298,965,604 327,561,504
Savings Deposit 243,862,543 182,618,441
Fixed Deposit 2,942,944,423 2,358,835,634
Deposit Schemes:
MDB Saalam Monthly Scheme 43,362,652 28,497,935
MDB Saalam Hajj Savings Scheme 2,214,501 2,360,146
MDB Digital Monthly Savings Scheme 13,813,219 6,169,863
MDB Digital Hajj Savings Scheme 1,458,179 1,474,672
MDB Double Benefit Plus Scheme 699,725 382,251
61,548,275 38,884,867

Total 3,567,937,455 2,952,893,520

7.00 Other Liabilities
Unearned Income 14,989,583 19,882,511
Compensation 8,793,611 -
Inter Bank General Account Balance (note 7.01) - -
23,783,194 19,882,511

7.01 Inter Bank General Account Balance (net)

Credit entries 949,704,203 625,699,362
Debit entries 1,045,760,153 679,816,378
(96,055,949) (54,117,016)
8.00 Contingent Liabilities
Acceptance and endorsements - -
Letter of Guarantee 552,500,000 502,700,000
Irrevocable Letter of Credit - -
Bills for Collection - -
Other Contingent Liabilities - -
552,500,000 502,700,000

Financial Statements
Midland Bank PLC.
244 Annual Report 2023
 Annexure-G2
Midland Bank PLC.
Notes to the Financial Statements of Islami Banking Wing
For the year ended 31 December 2023

Particulars Notes 2023 2022

BDT BDT

8.01 Letter of Guarantee

Foreign - -
Local 552,500,000 502,700,000
552,500,000 502,700,000
9.00 Profit on Investment
General Investment (note 9.01) 188,218,502 190,446,450
Balance with Other Banks and Financial Institutions 18,971,120 1,240,699
207,189,622 191,687,149
9.01 Profit on Investment
Income on Saalam Murabaha Local Purchase 58,383,523 69,548,497
Income on Saalam Hire Purchase Shirkat-Ul-Melk 124,705,301 117,074,190
Income on Saalam Consumer Finance 1,369,290 599,545
Income on Saalam Home Finance 3,697,115 2,587,169
Income on Saalam SME Bai Muajjal 63,274 637,049
188,218,502 190,446,450
10.00 Profit paid on Deposits and Other Accounts
Current Deposit 32,139 25,743
Special Notice Deposit 7,431,234 52,347,747
Savings Deposits 5,072,181 4,056,140
Fixed Deposits 182,470,412 118,274,951
Deposit Scheme 2,217,584 1,338,560
197,223,550 176,043,141
11.00 Income From Investments
Profit on Investment in T.Bond, SUKUK Bond 9,159,973 9,155,737
9,159,973 9,155,737
12.00 Commission, Exchange and Brokerage
Commission 2,218,590 2,011,000
Exchange 1,545 264
Brokerage - -
2,220,135 2,011,264
13.00 Salary & Allowances
Basic Salary 1,035,437 837,169
Allowances 1,396,009 922,081
Bonus 274,361 145,169
2,705,807 1,904,419
14.00 Printing, Stationery, Advertisement etc.
Printing & Stationery 127,604 87,840
Computer Stationery 16,250 -
Publicity & Advertisement - -
- -
143,854 87,840

Financial Statements
Midland Bank PLC.
245 Annual Report 2023
 Annexure-H
Midland Bank PLC.
Balance Sheet of Off-Shore Banking Unit
As at 31 December 2023

Particulars Notes 2023 2022

USD BDT USD BDT
Property and Asset
Cash - - - -
In Hand (Including Foreign Currency) - - - -
With Bangladesh Bank and its agent Bank (including Foreign - - - -

Balance with other Banks & Financial Institutions 1.00 191,525 21,067,802 286,968 29,641,657
In Bangladesh - - - -
Outside Bangladesh 191,525 21,067,802 286,968 29,641,657

Money at Call and Short Notice - - - -

Investments - - - -
Government - - - -
Others - - - -

Loans and Advances 2.00 30,792,536 3,387,178,927 29,096,325 3,005,437,931

Loans, Cash Credit, Overdrafts, etc. - - - -
Bills Purchased and Discounted 30,792,536 3,387,178,927 29,096,325 3,005,437,931

Fixed Asset including Premises, Furniture & Fixtures - - - -

Other Asset 3,889 427,778 - -

Non-Banking Asset - - - -
Total Property and Asset 30,987,950 3,408,674,507 29,383,292 3,035,079,588

Liabilities and Capital

Borrowing from other Banks, Financial Institutions & Agents 3.00 19,850,000 2,183,500,000 6,500,000 671,402,550
Deposit and Other Accounts 4.00 10,500,149 1,155,016,443 22,746,181 2,349,514,466

Other Liabilities 5.00 637,801 70,158,064 137,111 14,162,573

Total Liabilities 30,987,950 3,408,674,507 29,383,292 3,035,079,588
Capital/Shareholders' Equity
Paid up Capital - - - -
Statutory Reserve - - - -
Revaluation Reserve on Investment in Securities - - - -
Retained Earnings - - - -
Total Shareholders' Equity - - - -
Total Liabilities and Shareholders' Equity 30,987,950 3,408,674,507 29,383,292 3,035,079,588
- - - -
Off-Balance Sheet Items
Contingent Liabilities
Acceptance and endorsements - - - -
Letter of Guarantee
Irrevocable Letter of Credit - - - -
Bills for Collection - - - -
Other Contingent Liabilities - - - -
Other Commitments - - - -
Total Off Balance Sheet Items including Contingent Liabilities - - - -

Financial Statements
Midland Bank PLC.
246 Annual Report 2023
 Annexure-H1
Midland Bank PLC.
Profit and Loss Account of Off-Shore Banking Unit
For the year ended 31 December 2023

Particulars Notes 2023 2022

USD BDT USD BDT

Interest Income 6.00 2,010,998 221,209,828 1,302,055 134,492,788

Less: Interest Paid on Deposit and Borrowing, etc. 7.00 1,816,976 199,867,344 1,238,313 127,908,699
Net Interest Income 194,023 21,342,485 63,742 6,584,088

Income from Investment - - - -

Commission, Exchange and Brokerage - - - -
Other Operating Income 6,552 562,164 35,501 3,666,984
6,552 562,164 35,501 3,666,984
Total Operating Income 200,575 21,904,649 99,243 10,251,072

Less: Operating Expenditure

Salary and Allowances - - - -
Rent, Tax, Insurance, Electricity - - - -
Other Expenditure 110 12,100 - -
Total Operating Expenses 110 12,100 - -
Profit Before Provision & Tax 200,465 21,892,549 99,243 10,251,072

Financial Statements
Midland Bank PLC.
247 Annual Report 2023
 Annexure-H2
Midland Bank PLC.
Notes to the Financial Statements of Off-Shore Banking Unit
For the year ended 31 December 2023

Particulars Notes 2023 2022

USD BDT USD BDT
1.00 Balance with other Banks and Financial Institutions
In Bangladesh - - - -
Outside Bangladesh 191,525 21,067,801.70 286,968 29,641,657
191,525 21,067,802 286,968 29,641,657

2.00 Loans & Advances

Export Bill Discounting 8,887,877 977,666,470 6,956,335 718,538,640
Import Bill Discounting 21,904,659 2,409,512,457 22,139,989 2,286,899,291
30,792,536 3,387,178,927 29,096,325 3,005,437,931
3.00 Borrowing from other Banks, Financial Institutions & Agents
In Bangladesh 19,850,000 2,183,500,000 6,500,000 671,402,550
Outside Bangladesh - - - -
19,850,000 2,183,500,000 6,500,000 671,402,550

4.00 Deposit and Other Accounts

Fixed Deposit 10,500,000 1,155,000,000 22,745,899 2,349,485,288

Sundry Deposit 149 16,442.80 282 29,178
10,500,149 1,155,016,443 22,746,181 2,349,514,466
5.00 Other Liabilities
Interest Payable 437,336 48,106,956 37,868 3,911,500
Profit Payable 200,465 22,051,108 99,243 10,251,072
637,801 70,158,064 137,111 14,162,573

6.00 Interest Income

Loans and Advances 2,006,554 220,720,940 1,302,055 134,492,788
Balance with Other Banks and Financial Institutions 4,444 488,888 - -
2,010,998 221,209,828 1,302,055 134,492,788

7.00 Interest Paid on Deposit and Borrowing, etc.

Interest Paid on Deposit & Borrowing from Foreign Bank 1,086,469 119,511,545 612,538 63,270,734
Interest Paid on Deposit & Borrowing from Local Bank 730,507 80,355,799 625,775 64,637,966
1,816,976 199,867,344 1,238,313 127,908,699

Financial Statements
Midland Bank PLC.
248 Annual Report 2023
 MDB Service Network (Branch)
Sl. Branch Name Address Branch Manager
Chini Shilpa Bhaban (2nd floor), 3, Dilkusha C/A Mr. Abdullah Al Mamun, SAVP
Dilkusha
Dhaka 1000 Phone: +8801985700090, 01711359239
1 Corporate
Email: [email protected] Email: [email protected]
Branch
PABX: 09666-410901 PBX: 09666-410901 Ext.901-090
Hong Kong Shanghai Tower (Ground & 1 st floor), Plot 106, Mr. Mostofa Maynul Hasan, SAVP
Banani Road 11, Block C, Banani, Dhaka 1213 Phone: +8801985700057, 01914064738
2
Branch Email: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 902 / +(88) 096 11 410 902 PBX: 09666-410902 Ext.902-057
Mr. Mohammed Asif Raihan Chowdhury, SAVP
As - Salam Tower (1st floor), 57, Agrabad C/A, Chattogram Phone: 01985700531, 01716338123
3 Agrabad Branch Email: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 903 / +(88) 096 11 410 903 PBX: 09666 -410903 Ext.903-531
Direct No: 09666 -410127
Mannan Plaza (1st floor), Mirzapur Bazar, Bhawal, Mirzapur Mr. Ahbab Ahmed Jaigirder, SAVP
Mirzapur Sadar, Gazipur Phone: 01985700647, 01717130877
4
Bazar Branch Email: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 904 / +(88) 096 11 410 904 PBX: 09666 -410904 Ext.904-647

Dia -Moni Plaza (1st floor), Panchar, Shibchar, Madaripur Mr. Al Mamun, JAVP
Phone: 01911112490,01743320273
5 Panchar Branch Email: [email protected]
Email: [email protected]
PABX: +(88) 096 66 410 905 / +(88) 096 11 410 905 PBX: 09666-410905 Ext.905 -1449
ABC Heritage (Ground floor), Plot 2 & 4, Jashim Uddin Mr. Md. Ibrahim Khalil, SAVP
Avenue, Sector 3, Uttara, Dhaka 1230 Phone: +8801985700045, 01711106643
6 Uttara Branch Email: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 906 / +(88) 096 11 410 906 PBX: 09666 -410906 Ext.906-045

Maksuda Garden City (2nd floor), Aganagar, South Mr. Khandakar Bazlur Rahman, AVP
Keranigonj, Dhaka Phone: +8801985700101, 01712145524
7 Aganagar Branch
Email: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 907 / +(88) 096 11 410 907 PBX: 09666 -410907 Ext.907 -101
Green Rowshanara Tower (2nd Floor), House# 755(Old), Mr. Md. Hasanuzzaman, SAVP
Dhanmondi 55(New),Satmasjid Road, Dhanmondi, Dhaka 1205 Phone: 01712635557
8 Email: [email protected]
Branch Email: [email protected]
PABX: +(88) 096 66 410 908 / +(88) 096 11 410 908 PBX: 09666-410908 Ext.1486
Ayesha Tower (1st Floor), 522 Singair Road, Hemayetpur Mr. Abu Sayed Mohammad Zakaria Khan, FAVP
Hemayetpur Savar, Dhaka Phone: 01985700687, 01715281296
9
Branch Email: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 909 / +(88) 096 11 410 909 PBX: 096 66-410909 Ext.909-687
Mr. Mohammad Tariqul Hasan, AVP
Razzak Commercial Complex, Zirabo, Ashulia, Savar, Dhaka Phone: 01975997799
10 Zirabo Branch Email: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 910 / +(88) 096 11 410 910 PBX: 09666 -410906 Ext.1185
Mr. Faisal Ahmed, VP
NB Tower, Level 5, 40/7 North Avenue, Gulshan 2, Dhaka
Phone: 01985700356, 01714359203
11 Gulshan Branch 1212 , Email: [email protected]
Email: [email protected]
PABX: +(88) 096 66 410 911 / +(88) 096 11 410 911
PBX: 09666 -410999 Ext.911 -356
Shopon Tower, Panchrukhi Bazar, Araihajar, Narayanganj Mr. Md. Abdul Barik, FAVP
Panchrukhi Email: [email protected] Phone: 01985700236, 01712724567
12
Branch PABX: +(88) 096 66 410 912 / +(88) 096 11 410 912 Email: abdul. [email protected]
PBX: 09666 -410914 Ext.912-236
Mr. Shafiqul Islam Faquir Pintu, FAVP
Ramjan Tower, Natun Bazar Mor, Kamarpara, Turag, Dhaka
Kamarpara Phone: 01819261261
13 Email: [email protected]
Branch Email: [email protected]
PABX: +(88) 096 66 410 913 / +(88) 096 11 410 913
PBX: 09666-410904 Ext.1072

MDB Service Network

Midland Bank PLC.
249 Annual Report 2023
 MDB Service Network (Branch)
Sl. Branch Name Address Branch Manager
Helal Tower, First & second floor Mr. Mahamudul Hasan, AVP
211, Shahid Shorwadi Park Road, Narshingdi Phone: 01985700974,01717910524
14 Narsingdi Branch
Email: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 914 / +(88) 096 11 410 914 PBX: 09666 -410914 Ext.914 -974
Mr. Md. Lokman Hossain, AVP
55/A, Ground Floor, Tanbazar, Narayanganj
Narayanganj Phone: 01922438062,01534314722
15 Email: [email protected] Email: [email protected]
Branch
PABX: +(88) 096 66 410 915 / +(88) 096 11 410 915 PBX: 09666-410915 Ext.915-1499
Mr. Mohammad Faruq Ur Rahman, FAVP
Jamirdia, Masterbari, Valuka , Mymensingh
Phone: 01985700307, 01715186240
16 Valuka Branch Email: [email protected]
Email: [email protected]
PABX: +(88) 096 66 410 916 / +(88) 096 11 410 916
PBX: 09666 - 410916 Ext.916-307
EVE’s Centre (1st floor) A 1/47 P, East Nasirabad, Panchlaish, Mr. Abu Md. Towsif Reza, AVP
CDA Avenue Chattogram Phone: 01958700535, 01819350065
17
Branch Email: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 917 / +(88) 096 11 410 917 PBX: 09666 -410917 Ext.917-535

Majeda Plaza (1st floor), Talukdar Market, Mokamtola Mr. Md. Syfur Rahman, FAVP
Mokamtola Shibganj, Bogura Phone: 01985700254, 01920854982
18
Branch Email: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 918 / +(88) 096 11 410 918 PBX: 09666 -410918 Ext.918 -254

Abdul Rashid Market (1st & 2nd floor) Chowdhuryhat Mr. Syed Mohammed Omar, SAVP
Chowdhuryhat Hathajari, Chattogram Phone: 01985700355, 01819 863857
19
Branch Email: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 919 / +(88) 096 11 410 919 PBX: 09666 -410919 Ext.919 -355
Amicus Plaza, 1st floor, Shahid Abdul Jabbar Sarak Mr. Md. Mejbahur Rahman, FAVP
Joleshwari Tola, Bogura Phone: 01718881471
20 Bogura Branch
Email: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 920/ +(88) 096 11 410 920 PBX: 09666 -410920 Ext.1085
Montaz patwary Mansion (1st floor) Mr. Asaduzzaman Khan, AVP
Dalal Bazar Lakshmipur Sadar, Lakshmipur Phone: 01985700461,01708737900
21
Branch Email: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 921 / +(88) 096 11 410 921 PBX: 09666 -410921 Ext.921-461
Mr. Shah Md. Ali Kawsar Sourov, AVP
M.S Tower (1st Floor), Mirboxtola, Chowhatta, Sylhet Phone: 01985700620, 01819591999
22 Sylhet Branch Mail: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 922 / +(88) 096 11 410 922 PBX: 09666 -410922 Ext.922 -620
Mr. Prosenjit Sen, FAVP
Tayamun Centre (1st Floor), 181/1 Jessore Road, Khulna
Khulna Branch Phone: 01985700633, 01723443636
23 Mail: [email protected]
Email: [email protected]
PABX: +(88) 096 66 410 923 / +(88) 096 11 410 923
PBX: 09666 -410923 Ext.923 -633
Hai Mansion (1st Floor), Holding No.-365, Sahapara, Kochua Mr. Md. Arifur Rahman, JAVP
Sompara Bazar Bottoli Road, Chatkhil, Noakhali Phone: 01985700796, 01921456661
24
Branch Mail: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 924 / +(88) 096 11 410 924 PBX: 09666 -410924 Ext.924 -796
West Paragram Bazar, Nawabganj Mr. S M Syed-Al -Islam, FAVP
Dhaka (Right side of Singair Road) Phone: 01985700290, 01818502352
25 Paragram Branch
Mail: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 925 / +(88) 096 11 410 925 PBX: 09666 -410925 Ext.925-290
Hyperion Rose, Holding No-61/1 -2, Block -B, Road No -4 Mr. A.H.M. Gazzali, AVP
Ward No -2, Section -12, Pallabi, Dhaka Phone: 01985700483, 01711058469
26 Mirpur Branch
Mail: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 926 / +(88) 096 11 410 926 PBX: 09666 -410926 Ext.926 -483

MDB Service Network

Midland Bank PLC.
250 Annual Report 2023
 MDB Service Network (Branch)
Sl. Branch Name Address Branch Manager
98/1 Haji Market, Bara Nawabpur, Faylabazar, Ujalkur, Mr. Amitav Kumar Raha, EO
Foyla Bazar Rampal, Bagerhat Phone: 01985700747, 01711938431
27
Branch Mail: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 927 / +(88) 096 11 410 927 PBX: 09666 -410927 Ext.927-747
Mr. Md. Asif Iqbal, JAVP
Vashra, Maligram, Deora, Bhanga, Faridpur
Phone: 01985700305, 01868618989
28 Maligram Branch Mail: [email protected]
Email: [email protected]
PABX: +(88) 096 66 410 928 / +(88) 096 11 410 928
PBX: 09666 -410928 Ext.928-305
Rahamania Tower, Holding-57,58 & 60, Ganok Para, Station Mr. Md. Ahsan Habib, AVP
Road, Ward-12, P.S. -Boalia, Dist - Rajshahi Phone: 01985700302, 01711107239
29 Rajshahi Branch
Mail: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 929 / +(88) 096 11 410 929 PBX: 09617 -410929 Ext.929 -302
Mr. Ha-Mim Muhammad Molla, SAVP
Emon Tower, Holding - 61, Islampur Road, Ward-36,
Phone: 01985700527, 01712611775
P.S.-Kotowali, Dist - Dhaka
30 Islampur Branch Email: [email protected]
Mail: [email protected]
PBX: 09666 -410914 Ext.930-527
PABX: +(88) 096 66 410 930 / +(88) 096 11 410 930
Mr. Md. Tahidul Amin Mojumder, AVP
Meem Tower, Shashongacha, Adarsha Sadar, Cumilla,
Shashongacha Phone: 01985700697, 01828058652
31 Mail: [email protected] ,
Branch Email: [email protected]
PABX: +(88) 096 66 410 931 / +(88) 096 11 410 931
PBX: 09666 -410931 Ext.931 -697
Mr. Kazi Mokarram Hossain, JAVP
Godown Moor, Bheramara Highway, Kushtia,
Bheramara Phone: 01985700893, 01711380388
32 Mail: [email protected]
Branch Email: [email protected]
PABX : +(88) 096 66 410 932 / +(88) 096 11 410 932
PBX: 09666 -410932 Ext.932- 893
Mr. Md. Ahsanul Alam, JAVP
Hossain Monzil, East Sadipur, Doshmile, Dinajpur
Phone: 01712068328
33 Doshmile Branch Mail: [email protected]
Email: [email protected]
PABX: +(88) 096 66 410 933 / +(88) 096 11 410 933
PBX: 09666 -410933 Ext.1063
Mr. Md. Azimul Islam, SEO-Cash
Islam Super Market, Fatullah Bazar, Narayanganj
Phone: +8801985700155, +8801924842414
34 Fatullah Branch Mail: [email protected]
Email: [email protected]
PABX: +(88) 096 66 410 934 / +(88) 096 11 410 934
PBX: 09666 -410934 Ext.934-155
Jahangir Tower, 10, Kazi Nazrul Islam Avenue, Ward No -26 Mr. Md. Abdullah, FAVP
Kawran Bazar Tejgaon, Dhaka Phone: 01985700541, 01956685532
35
Branch Mail: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 935 / +(88) 096 11 410 935 PBX: 09666 -410935 Ext.935 -541
Sunshine Tower, Holding -3434, Ward -16, P.S.: Kotoali Mr. Md. Rezaul Huq, AVP
Dist.: Rangpur Phone: 01711428099
36 Rangpur Branch
Mail: [email protected] Email: rezaul. [email protected]
PABX: +(88) 096 66 410 936/ +(88) 096 66 410 936 PBX: 09666-410936 Ext.936 -269
A.K. School Building (1st Floor), Holding # 388 Mr. Md. Mizanur Rahman, JAVP
K.B. Hemayet Uddin Road, Girza Moholla, Barishal Phone: 01985700660, 01711123750
37 Barishal Branch
Mail: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 937/ +(88) 096 66 410 937 PBX: 09666 -410937 Ext.937 -660
Soudagar Market, Holding No. 227, Ward No. 06 Mr. Md. Jahangir Alam, JAVP
38 Bokhter Munshi Mongolkandi, Sonagazi, Feni Phone: 01739498449,01819463830
Bazar Branch Mail: [email protected] Email: [email protected]
PABX No: +(88) 096 66 410 938/ +(88) 096 66 410 938 PBX: 09666-410938 Ext.938-1555

Emirates Tower, Afjal Road, Chandraganj, Lakshmipur Sadar Mr. Mohammad Mohshin Khan, JAVP
Chandraganj Lakshmipur Phone: 01715174817, 01815174817
39 Email: [email protected]
Branch Mail: [email protected]
PABX.: +(88) 096 66 410 939/ +(88) 096 66 410 939 PBX: 09666-410939 Ext.1497

MDB Service Network

Midland Bank PLC.
251 Annual Report 2023
 MDB Service Network (Sub-Branches)
Sl. Sub-Branch Name Address Manager, Sub -Branch
Madhabdi Pourashava office Bhaban Mr. Monir Hossain, JAVP
Madhabdi Madhabdi, Narsingdi Phone: 01985700251,01611099977
1 Email: [email protected]
Sub-Branch Mail: [email protected]
PABX: +(88) 096 66 410 914 / +(88) 096 11 410 914 PBX: 09666-410914 Ext.914-251

R. S. Tower (1st floor), Hospital Road, Sador Mr. A.K.M. Mushfiqur Rahman Patwary, Officer
Lakshmipur Phone: 01719331290,01712148477
2 Lakshmipur Sub -Branch Email: mushfi[email protected]
Mail: [email protected]
PBX: 09666-410921 Ext. 1464
PABX: +(88) 096 66 410 921 / +(88) 096 11 410 921
House #56, Road#19, Rupnagar R/A Rupnagar Mr. Md. Shofiqul Islam, EO
Mirpur, Dhaka Phone: 01923288297, 01610-173536
3 Rupnagar Sub-Branch Mail: [email protected] Email: mdshofi[email protected]
PABX: +(88) 096 66 410 926 / +(88) 096 11 410 926 PBX: 09666-410926 Ext. 1067

Showantex Tower (ground floor), House no. 9/I, Mr. Md. Azmal Hossain, FAVP
Motijheel C/A, Dhaka Phone: 01985700532,01712334120
4 Motijheel Sub-Branch Mail: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 901 / +(88) 096 11 410 901 PBX: 09666 -410901 Ext.901 -532

CCMPSL Tower, Holding No. 412, Ward No. 06, Mr. Md. Moklasur Rahman, EO
Shahjadpur, Sirajganj Phone: 01711117500
5 Shahjadpur Sub-Branch
Mail: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 920 / +(88) 096 11 410 920 PBX: 09617-410920 Ext.1200
Aziz Super Market, Holding No -629, C&B Road, Ward Mr. G. M. Bakibillah, EO
No-3, Chatkhil, Noakhali Phone: 01985700979, 01724896617
6 Chatkhil Sub -Branch Mail: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 924 / +(88) 096 11 410 924 PBX: 09666-410924 Ext. 924-979

Nagar Bhaban, Holding No-142, Greater Road, Ward Mrs. Moriam Parvin, EO
No-13, Rajshahi City Corporation, P.S -Boalia Phone: 01985700151, 01721590025
7 Rajshahi City Corporation Dist.-Rajshahi Email: [email protected]
Sub-Branch Mail: [email protected] PBX: 09666-410929 Ext.929-151
PABX: +(88) 096 66 410 929 / +(88) 096 11 410 929
B&B Tower, 129 Jubilee Road, Enayet Bazar, Mr. Md. Sajjad Chowdhury, FAVP
Chattogram. Phone: 01985700358,01676020909
8 Jubilee Road Sub -Branch
Mail: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 903 / +(88) 096 11 410 903 PBX: 09666 -410903 Ext.903 -358
Meghna Industrial Economic Zone, Tipordi, Daag No-
Mr. Sukumar Biswas, EO
RS -31, Mouza -Choto Shilmondi, Union - Mograpara
Phone: 01985700313,01725060030
9 MIEZ Sub-Branch P.S: Sonargaon, Dist: Narayanganj
Email: [email protected]
Mail: [email protected]
PBX: 09666 -410930 Ext.901-313
PABX: +(88) 096 66 410 901 / +(88) 096 11 410 901
Hira Square, Holding -20, Jadhav Lahiri Lane Mr. Sonjoy Kumar Paul, JAVP
Mymensingh Phone: 01985700306, 01911580780
10 Mymensingh Sub-Branch Email: [email protected]
Mail: [email protected]
PABX: +(88) 096 66 410 916 / +(88) 096 11 410 916 PBX: 09666 -410916 Ext.916-306
Sharif Market, Holding No: 648, Jashore--Khulna Mr. Shirdharta Ghose, JAVP
Mohasharak, Ward No: 06, Pourashava: Noapara Phone: 01985700533, 01911290864
11 Noapara Sub-Branch Ps-Abhaynagar, Jashore Email: [email protected]
Mail: [email protected], PABX: 09666-410923 PBX: 09666-410923 Ext.923-642
Sreenagar Plaza, Kancha Bazar Road, Sreenagar Bazar Mr. Mohammad Quaid - E - Azam, JAVP
Sreenagar, Munshiganj Phone: +8801985700143, +8801716539413
12 Sreenagar Sub-Branch Mail: [email protected] Email: [email protected]
PABX: 09666-410926 PBX: 09666 -410926 Ext.907-143

MDB Service Network

Midland Bank PLC.
252 Annual Report 2023
 MDB Service Network (Sub-Branches)
Sl. Sub-Branch Name Address Manager, Sub-Branch

Holding Number: 683, 1st Floor, Tamabil Road Mr. Muhammad Aminur Rashid, AO
Shibgonj, Sylhet Phone: 01719428388
13 Shibgonj Sub -Branch Email: [email protected]
Mail: [email protected]
PABX: +(88) 096 66 410 922 / +(88) 096 11 410 922 PBX: 09666-410922 Ext.1194

Shajib Shabbir Villa, Gazipur City Corporation Mr. Md. Norozzaman, JAVP
Konabari(Metro), Gazipur Phone: 01985700276, 01915826583
14 Noser Market Sub-Branch Email: [email protected]
Mail: [email protected]
PBX: 09666 -410904 PBX: 09666-410904 Ext.904-276

House: 1/9, Road: NoorJahan Road, Block: D Mr. Mahfuzur Rahman, FAVP
Nurjahan Road PS: Mohammadpur, PO: Mohammadpur-1207, Dhaka Phone: 01985700843, 01713571370
15
Sub-Branch Mail: [email protected] Email: [email protected]
PABX: 09666-410908 PBX: 09666 -410908 Ext.908 -843

Ekota Bhaban (1st floor), Dendabor (Palli Biddut Bus Mr. Muhammad Mamun Chowdhury, FAVP
Stand), Ashulia, Savar, Dhaka. Phone: 01985700230, 01722596653
16 Dendabor Sub-Branch
Mail: [email protected] Email: [email protected]
PABX: +(88) 096 66 410 910 / +(88) 096 11 410 910 PABX: 09666-410910 Ext.910-230

Holding No-02, Road No-13/C, Sector-6, Shahjalal Mr. Mohammad Nuruzzaman, FAVP
Avenue, Ward -01. Dhaka North City Corporation Phone: 01985700544, 01716182750
Uttara Shahjalal Avenue Uttara-West, Dhaka Email: [email protected]
17
Sub-Branch Mail: [email protected] PBX: 09666 -410906 Ext.906-544
PABX: +(88) 096 66 410 906 / +(88) 096 11 410 906

Poura Bhaban, Bogura Pourashava, Bogura Mr. Md. Hazrat Belal, JAVP
Bogura Pourashava Mail: [email protected] Phone: 01985700816,01790884630
18 Email: [email protected]
Sub-Branch PABX No :+88) 096 66 410 920/ +(88) 096 11 410 920
PBX: 09617-410920 Ext.920-816
Sajid Plaza, Holding No - 46 Madani Avenue Mr. Mizbaul Islam Khan, JAVP
Madani Avenue Ward No – 40, Dhaka North City Corporation Phone: 01911041818
19 Police Station – Vatara, District – Dhaka
Sub-Branch Email: [email protected]
Mail: [email protected] PBX: 09666-410911 Ext.1508
PABX No : +(88) 096 66 410 911 / +(88) 096 11 410 911

MDB Service Network (Collection Booths)

Name of Collection
Sl. Address Assigned Officer
Booth

1 Southeast University Fess House # 251/A & 252, Mr. Mostofa Maynul Hasan, SAVP , Phone: +8801985700057,01914064738
Collection Booth -1 Tejgaon I/A, Dhaka. Email: [email protected] , PBX: 09666 -410902 Ext.902- 057

2 Narshingdi Bill Collection Narshingdi Pourashava Mr. Mahamudul Hasan, AVP, Phone: 01985700974,01717910524
Booth Bhaban, Narshingdi Email: [email protected] , PBX: 09666 -410914 Ext.914 -974
Mokamtola REB Mokamtola Polli Bidyut Mr. Md. Syfur Rahman, FAVP, Phone: 01985700254, 01920854982
3
Collection Booth Zonal office, Mokamtola Email: [email protected] , PBX: 09666 -410918 Ext.918-254
REB Collection Booth, Mr. Md. Mejbahur Rahman, FAVP, Phone: 01718881471
4 REB Head Office, Bogura
Bogura Email: [email protected], PBX: 09666 -410920 Ext.1085
Bagerhat REB Collection Bagerhat Polli Bidyut Zonal Mr. Amitav Kumar Raha, EO , Phone: 01985 700747, 01711938431
5
Booth office, Bagerhat. Email: [email protected] , PBX: 09666-410927 Ext.927-747
Bheramara REB Bheramara Polli Bidyut Zonal Mr. Kazi Mokarram Hossain, JAVP, Phone: 01985700893, 01711380388
6
Collection Booth office, Bheramara, Kushtia. Email: [email protected] , PBX: 09666-410932 Ext.932-893

7 Daulatpur REB Collection Daulatpur Polli Bidyut Zonal Mr. Kazi Mokarram Hossain, JAVP, Phone: 01985700893, 01711380388
Booth office, Kushtia Email: [email protected] , PBX: 09666-410932 Ext.932-893

Birgonj REB Collection Birgonj Polli Bidyut Zonal Mr. Md. Ahsanul Alam, JAVP , Phone: 01712068328
8 Email: [email protected] , PBX: 09666 -410933 Ext.1063
Booth office, Dinajpur

9 Bheramara Pourashava Pourashava Bhaban Mr. Kazi Mokarram Hossain, JAVP, Phone: 01985700893, 01711380388
Collection Booth Bheramara Email: [email protected] , PBX: 09666 -410932 Ext.932-893

MDB Service Network

Midland Bank PLC.
253 Annual Report 2023
 Agent Banking Centres
Sl. Name of Agent
1 United Social Human Advancement (USHA) Foundation, Dighi Borabo, Jatramura, Rupganj, Narayanganj
2 Mehjabin Traders, Palora Bazar, Betila, Manikganj Sadar, Manikganj
3 Mehjabin Traders, Lemubari Notunhat, Balirtek Road, Manikganj Sadar, Manikganj
4 Society For Family Happiness And Prosperity (Fhp), Darikandi, Bajitpur, Kishoreganj
5 M/S. Robin Traders, Mostail Bazar, Bohail, Shahjahanpur, Bogura
6 M/S. Mozaddediya Enterprise, Moshipur, Shahjadpur, Sirajganj
7 M/S. Prapti Dairy Farm, Dhunot Officer Para, Dhunat, Bogura
8 Coast Foundation, Torabganj Bazar, Torabganj, Kamalnagar, Lakshmipur
9 Deshbondhu Solar and Electronics, Guzia Bazar Shibganj, Bogura
10 Deshbondhu Solar and Electronics, Amtoli Bazar, Guzia, Shibganj, Bogura
11 Village Association for Social Development (VASD), Dholla Bazar, Dholla, Singair, Manikganj
12 Sarker Apparels Food & Trading Limited, Kadamtala, Basabo, Sabujbag, Dhaka-1214
13 Moti Medical Store, Jumarbari Bazar, Saghata, Gaibandha
14 Master & Sons, Oddirgola Bazar, Shabgram, Bogura Sadar,bogura
15 Forid Traders, Sonahata Bazar, Dhunat, Bogura
16 K. H. Enterprise, Narayanpur Bazar, Belabo, Narsingdi
17 K. H. Enterprise, Board School Bazar, Sollahbad-1630, Belabo, Narsingdi
18 Raju Poultry Firm, Shingher Char, Natun Bazar, Rupsha, Khulna
19 Raju Poultry Firm, Rahimnagar, Rupsha, Khulna
20 Raju Poultry Firm, Lobonchara Nodir Teer, Shipyard, Lobonchara, Khulna
21 BASTOB-Initiative for Peoples Self-Development, Malumghat Bazar, Dulhazara, Chakaria, Cox's Bazar
22 Janani Traders, Fatepur Bazar, Chandahar, Singair, Manikganj
23 Wali Enterprise, Shibchar Bazar, Shibchar, Madaripur
24 Ma Enterprise, Chanderchar Bazar, Umedpur, Shibchar, Madaripur
25 Z.R. Corporation, 1 No Kalma Bazar, Savar, Dhaka
26 Shiza Enterprize, Hossen Market, Dattapara, Tongi, Gazipur
27 Tonoya Traders, Kundugram, Adomdighi, Bogura
28 Gazi Agro Farm, Kashore Bazar, Habirbari, Valuka, Mymensingh
29 Maysha Enterprise, Dhakkin Khanpur, Khanpur, Bagerhat Sadar,bagerhat
30 M/S Munni Enterprise, Shahorail Bazar, Shahorail, Singair, Manikganj
31 Mahi Enterprise, Baliyahati Bazar, Baliyahati, Bhanga, Faridpur
32 Durjoy Medical Store, Kagail Bazar, Kagail, Gabtoli, Bogura
33 R N Enterprise, Atapara Bazar, Sonarai, Gabtoli, Bogura
34 M/S Bornomala, Mohimaganj Bazar, Mohimaganj, Gobindaganj, Gaibandha
35 Mandol Hardware, Jhaturdia Bazar, Nagarkanda, Faridpur
36 M/S Shikder Fisheries, Churkhai Bazar, Churkhai, Kotwali, Mymensingh
37 M/S Shikder Fisheries, Shomvuganj Bazar, Mymensingh Sadar, Mymensingh
38 Roni Enterprise, Paril Bazar, Paril Nowadha, Singair, Manikganj
39 Roni Enterprise, Kaliakoir Bazar, Singair, Manikganj
40 Population Crisis Control & Mass Education Committee, H# 180, R# 12, Sonadanga, Khulna
41 Population Crisis Control & Mass Education Committee, Koyra, Khulna-9290
42 Population Crisis Control & Mass Education Committee, Dakop, Khulna-9272
43 Population Crisis Control & Mass Education Committee, Paikgacha Bazar, Paikgacha, Khulna-9280
44 Population Crisis Control & Mass Education Committee, Ashashuni, Ashashuni, Satkhira-9460, Satkhira
45 Population Crisis Control & Mass Education Committee, Shyamnagar, Satkhira-9450, Satkhira
46 Zahanara Agro International, Altafnagar Bazar, Altafnagar, Dupchachia, Bogura
47 Zahanara Agro International, Khanpukur Bazar, Khanpukur, Rani Nagar, Naogaon
48 Zahanara Agro International, Nowduli Bazar, Palsha, Muniari Union Parishad, Atrai, Naogaon
49 Pramanik Traders, Rameshwarpur Bazar, Gabtoli, Bogura
50 Protik Electronics, Tuital Bazar, Tashulla Banglabazar, Nawabganj, Dhaka
51 Protik Electronics, Horishkul Bazar, Jantrail, Nawabganj, Dhaka
52 Protik Electronics, Tashulla Banglabazar, Tashulla Banglabazar-1322, Nayansree Union Parishad, Nawabganj, Dhaka
53 Shahin Enterprise, Salna Bazar, Gazipur Sadar, Gazipur
54 SM Link, Shiruail Bazar, Hat Shiruail, Shibchar, Madaripur
55 Ababil Telecom, Puranakoil Bazar, Puranakoil, Sadar, Joypurhat
56 Mehedi Traders, Pakerhat, Khanshama, Dinajpur
57 Ha-mim Enterprise, Monjhar Bazar, Khetlal, Joypurhat
58 Maf Electric, Thanar More, Anwara, Chattogram
59 Provati Seba Sales Enterprise, Gosaibari Bazar, Gosaibari, Dhunat, Bogura
60 Firoja Gift Corner, Bhabaniganj Bazar, Lakshmipur Sadar, Lakshmipur
61 M/S Kaium Electric, Sonarpara Bazar, Kichok-5810, Shibganj, Bogura
62 M/S Amin Brothers, Katakhali Bazar, Town Nowapara-9370, Piljong Union Parishad, Fokirhat, Bagerhat

MDB Service Network

Midland Bank PLC.
254 Annual Report 2023
 Agent Banking Centres
Sl. Name of Agent
63 M/S Labib Electronics, Boiragy Bazar, K H Madrasha-7931, Paikpara Union Parishad, Rajoir, Madaripur
64 Green Seo Tools, 1no. Rail Gate Bazar, Modonhat-4330, Fatepur Union Parishad, Hathazari, Chattogram
65 M/S S B Tiles, Nazrul Avenue, Kandirpar, Sadar, Cumilla
66 Fiha Trading Corporation, Jurain Bazar Road, Jurain Rail Gate, Jurain, Dhaka-1204
67 Edgex Limited, House-02, Road-07, Dhanmondi, Dhaka-1205
68 M/S Tanjim Traders, Dohargaon, Baliyapara-1460, Rupganj, Narayanganj
69 M/S Rasel Bricks, Dhamti Bazar, Debidwar, Cumilla
70 Sadiq Sell Center, Koya Bazar, Jalma Union Parishad, Koya Bazar, Batiaghata, Khulna
71 Sk Computer Graphics And Training Center, South Dattapara Bazar, Lakshmipur Sadar, Lakshmipur
72 Fatema Mobile Servicing Center, Madaripool Bazar, Moddho Madrasha, Ward No-4, Samitirhat, Hathazari, Chattogram
73 M/S Sumon Enterprise, Shimul Bazar, Tarail-7830, Bhanga, Faridpur
74 Online Bangla Shop, Chawkbazar, Chawkbazar-4000, Chawkbazar, Chattogram
75 M/S Shahida Traders, Rohobol Bazar,9 No Dewli Union Parishad, Rohobol-5810, Shibganj, Bogura
76 Brothers Enterprise, Nur Tower, Hashem Bazar, Aturar Depo, Panchalish, Chattogram
77 M/S Roy Traders, Jot Bazar, Nurullabad Union Parishad, Manda, Naogaon
78 Nadira IT Center, Bhendabari Bazar, Bhendabari-5470, Pirganj, Rangpur
79 Sk Traders, Baishteki, Mirpur-13, Kafrul, Dhaka
80 Adil And Nishat Computer’s And Telecom Center, Gangnagar Bazar, 9 No. Dewli Union Parishad, Shibganj, Bogura
81 M/S Rijvi And Roktim Traders, Jamurhat Bazar, 6 No Buriganj Union Parishad, Buriganj-5810, Shibganj, Bogura
82 Jui Enterprise, Bolidara Bazar, 8 No Nanduar Union Parishad, Bolidara-5120, Ranisankail,thakurgaon
83 Mizan Brothers, Polerhat Bazar, 8 No. Khanpur Union Parishad, Khanpur, Bagerhat Sadar, Bagerhat
84 Care And Cure Engineering Consultancy Firm, Sharakghat Bazar, Piruj Ali Union Parishad, Gazipur Sadar, Gazipur
85 M/S Maymuna Traders, Atmul Bazar, Atmul Union Parishad, Shibganj, Bogura
86 Bbr Enterprise, Kalir Bazar, Fulchhari, Gaibandha
87 Jamuna Traders, Taltola Bazar, Chatkhil, Noakhali
88 Mohona Shopping Zone, Daridaha Bazar, Shibganj, Bogura
89 Gm Agro Farm, Rajai Bazar, 11 No Rajai Union Parishad, Valuka, Mymensingh
90 M/S Noha Enterprise, Bhawanigonj Bazar, Bagmara, Rajshahi
91 M/S Abdul Motalib Traders, Burburia Bazar, Burburia-3420, Bancharampur, Brahmanbaria
92 M/S Anup Traders, Dholarhat Bazar, Ruhia, Thakurgaon Sadar, Thakurgaon
93 Rajiv Enterprise, Boikali Bazar, Junction Road, Khalishpur, Khulna
94 Sarker Enterprise, Poddarganj Bazar, Saheber Abad, Dacope, Khulna
95 Action For Human Development Organization (AHDO), Jhaudia Bazar, Kushtia Sadar, Kushtia
96 Action For Human Development Organization (AHDO), Mothurapur, Daulatpur, Kushtia
97 Action For Human Development Organization (AHDO), Kuchiamora Bazar, Bheramara, Kushtia
98 Action For Human Development Organization (AHDO), Sona Potti, Bheramara, Kushtia
99 M/S Amar Desh Traders, Ratankandi Bazar, Shahjadpur-6770, Shahjadpur, Sirajganj
100 Juma Enterprise, Paikgacha Bazar, Paikgacha, Khulna
101 U.S.Telecom, Rupsha Bazar, Rahimnagar-1260, Rupsha,khulna
102 M/S Sotota Traders, Mahasthan Bazar, Mahasthan, Shibganj, Bogura
103 M/S Tanni Fashion House, Altafnagar Bazar, Altafnagar, Dupchanchia, Bogura
104 Techosonic It & Technologies, Kalabagan, New Market -1205, Kalabagan, Dhaka
105 A.R Telecom, Khanpukur Bazar, Khanpukur-6590, Raninagar, Naogaon
106 M & M Traders, Deuty Bazar, Deuty-5450, Pirgachha, Rangpur
107 Anas Motors, Saidpur BSCIC Industrial Area, Saidpur-5310, Saidpur, Nilphamari
108 United Social Human Advancement (USHA) Foundation, Kalibari Bazar, Araihazar, Narayanganj
109 United Social Human Advancement (USHA) Foundation, Alinogor, Bondor, Narayanganj
110 United Social Human Advancement (USHA) Foundation, Norshinghapur, Zirabo, Savar, Dhaka
111 United Social Human Advancement (USHA) Foundation, Bhuigor, Fatullah, Narayanganj
112 United Social Human Advancement (USHA) Foundation, Baimail(East), Konabari, Kashem Kotton Mill, Gazipur Sadar, Gazipur
113 United Social Human Advancement (USHA) Foundation, Chinispur, Narshingdi Sadar, Narshingdi
114 United Social Human Advancement (USHA) Foundation, Katatara, Bawbazar, Madhobdi, Narshingdi
115 United Social Human Advancement (USHA) Foundation, Uddobgonj, Sonargaon, Narayanganj
116 Vai Bon Library And B-kash Point, Modhupur Bazar, Shalikha-5826, Sonatola, Bogura
117 United Social Human Advancement (USHA) Foundation, Mograpara, Sonargaon, Narayanganj
118 United Social Human Advancement (USHA) Foundation, Brahmanpara, Narshingdi Sadar, Narshingdi
119 M/S K. H. Enterprise, Ibrahimpur Bazar, Narayanpur-1360, Belabo,narsingdi
120 Durjoy Medical Store, Uzgram Bazar, Gabtoli, Bogura
121 Fashol Dotcom Limited, 130 Kabbokash, Unit 3/4, Kawran Bazar, Dhaka-1215
122 Rana Telecom, Kawlibera Bazar, Kawlibera-7830, Bhanga, Faridpur
123 Simul Traders, Noorullah Godown, Tewariganj Road, Bhabaniganj-3702, Lakshmipur Sadar, Lakshmipur
124 Mahisha Telecom, Katakhali Baluahat, Bishubari-5740, Gobindaganj, Gaibandha
125 M/S Nirob Enterprise, Kutubpur Bazar, Jorgacha-5831, Sariakandi, Bogura
126 Alif Telecom, Baluahat Bazar, Baluahat-5826, Sonatola, Bogura
127 Dreamworld Trading, Khalishpur (Polytechnic College More), Khulna Gpo-9000, Khalishpur, Khulna
MDB Service Network
Midland Bank PLC.
255 Annual Report 2023
 ATM
SI. ATM Name Location Site Tagged Branch
1 Aganagar Maksuda Garden City (Ground Floor), Aganagar, South Keranigonj, Dhaka Onsite Aganagar Branch
2 Agrabad As- Salam Tower, 57, Agrabad Commercial Area (1st Floor), Chittagong Onsite Agrabad Branch
3 Amanat Shah - Narsingdi Amanat Shah Spinning Mills, Vatara, Panchdona, Narsingdi Offsite Narsingdi Branch
4 Amtranet - Savar Amtranet Limited , KASBA TOWER, Rajashan Industrial Area, Savar Offsite Hemayetpur Branch
5 Amtranet - Savar 2 Amtranet Limited , KASBA TOWER, Rajashan Industrial Area, Savar Offsite Hemayetpur Branch
6 Amtranet - Tongi Amtranet Group, Maa Tower (Ground Floor), KBM Road, Tongi I/A , Gazipur Offsite Uttara Branch
7 Amtranet - Tongi 2 Amtranet Group, Maa Tower (Ground Floor), KBM Road, Tongi I/A , Gazipur Offsite Uttara Branch
8 Banani Hong Kong Shanghai Tower, Plot #106, Road#11, Block#C, Banani, Dhaka Onsite Banani Branch
9 Barishal Branch A.K. School Building (1st Floor), Holding # 388, K.B. Hemayet Uddin Road, Girza Moholla, Barishal Onsite Barishal Branch
10 Bheramara Godown Moor, Bheramara Highway, Kushtia Onsite Bheramara Branch
11 Bogura Amicus Plaza, 1st floor, Shahid Abdul Jabbar Sarak, Joleshwari Tola, Bogura Onsite Bogura Branch
12 Bokhter Munshi Feni Branch Holding # 227, Ward # 06, Union- 3 no. Mongolkandi, Post # Bokhter Munshi Bazar, Thana # Sonagazi, District # Feni Onsite Bokhter Munshi Bazar Branch
13 CDA Avenue EVEs Centre (Ground Floor) , A 1/47 P, East Nasirabad, Panchlaish, Chittagong Onsite CDA Avenue Branch
14 Chandraganj Branch Emirates Tower, Deupara, Ajzal Road, Ward # 5, Union 10 no. Chandraganj, Thana # Chandraganj, District # Lakshmipur Onsite Chandraganj Branch
15 Chatkhil Sub-Branch Aziz Super Market, Holding No-629, C&B Road, Ward No-3, Chatkhil, Noakhali Onsite Chatkhil Sub-Branch
16 Chowdhuryhat Abdul Rashid Market (Ground Floor), Chowdhury Hat , Hat Hajari, Chittagong Onsite Chowdhuryhat Branch
17 Dalal Bazar Montaz patwary Mansion (Ground floor) , Lakshmipur Sadar, Lakshmipur Onsite Dalal Bazar Branch
18 Dendabor Sub-Branch Ekota Bhaban (1st floor), Dendabor (Palli Biddut Bus Stand), Ashulia, Savar, Dhaka Onsite Dendabor Sub-Branch
19 Dhanmondi Green Rowshanara Tower, House# 755(Old), 55(New),Satmasjid Road, Dhanmondi, Dhaka 1205 Onsite Dhanmondi Branch
20 Dilkusha Chini Shilpa Bhaban, 3, Dilkusha C/A, Dhaka-1000 Onsite Dilkusha Corporate Branch
21 Doshmile Hossain Monzil, East Sadipur, Doshmile, Dinajpur Onsite Doshmile Branch
22 Fatullah Branch Fatullah Bazar, Ward: 04, Union: Fatullah, Thana: Narayanganj, Dist: Narayanganj Onsite Fatullah Branch
23 Foyla Bazar 98/1 Haji Market, Bara Nawabpur, Faylabazar, Ujalkur, Rampal, Bagerhat Onsite Foyla Bazar Branch
24 Gulshan NB Tower, Level-5, 40/7 North Avenue, Gulshan-2, Dhaka-1212 Onsite Gulshan Branch
25 Hemayetpur Ayesha Tower (1st Floor), 522 Singair Road, Hemayetpur, Savar, Dhaka Onsite Hemayetpur Branch
26 Islampur Emon Tower, Holding-61, Islampur Road, Ward-36, P.S.-Kotowali, Dist- Dhaka Onsite Islampur Branch
27 Jubilee Road Sub-Branch B&B Tower, 129 Jubilee Road, Enayet Bazar, Chottagram Onsite Jubilee Road Sub-Branch
28 Kamarpara JomJom Tower, Kamarpara School Road, Dhaka Onsite Kamarpara Branch
29 Kawran Bazar Branch Jahangir Tower, 10, Kazi Nazrul Islam Avenue, Ward No-26, Tejgaon, Dhaka Onsite Kawran Bazar Branch
30 Khulna Tayamun Centre (Ground Floor), 181/1 Jessore Road, Khulna Onsite Khulna Branch
31 Lakshmipur Sub-Branch R.S Tower, Hospital Road, Lakshmipur Sadar, Lakshmipur Onsite Mirpur Branch
32 Madhabdi Sub-Branch Madhabdi Pourashava Office Bhaban, Madhabdi, Narsingdi Onsite Narsingdi Branch
33 Maligram Vashra, Maligram, Deora, Bhanga, Faridpur Onsite Maligram Branch
34 MIEZ Sub-Branch Meghna Industrial Economic Zone, Tipordi, Daag No- RS-31, Mouza-Choto Shilmondi, Union- Mograpara, P.S: Sonargaon, Dist: Narayanganj Onsite Dilkusha Corporate Branch
35 Mirpur Hyperion Rose, Holding No-61/1-2, Block-B, Road No-4, Ward No-2,Section-12, Pallabi, Dhaka Onsite Mirpur Branch
36 Mirzapur Bazar Mannan Plaza, Mirzapur Bazar, Bhawal, Mirzapur Sadar, Gazipur Onsite Mirzapur Bazar Branch
37 Mokamtola Majeda Plaza (Ground Floor), Talukdar Market, Mokamtola, Shibganj, Bogra Onsite Mokamtola Branch
38 Motijheel Sub-Branch Swantex Bhaban, 9/i, Motijheel C/A, Dhaka Onsite Dilkusha Corporate Branch
39 Mymensingh Sub-Branch Hira Square, Holding-20, Jadhav Lahiri Lane, Mymensingh Onsite Mymensingh Sub-Branch
40 Narayanganj 55/A, Ground Floor, Tanbazar, Narayanganj Onsite Narayanganj Branch
41 Narshingdi Helal Tower, First & second floor, 211 Shahid Shorwadi Park Road, Narshingdi Onsite Narsingdi Branch
42 Noapara Sub-Branch Sharif Market, Holding No:648, Jashore-Khulna Mohasharak, Ward No: 06,Pourashava: Noapara, Ps- Abhaynagar, Jashore Onsite Noapara Sub-Branch
43 Noser Market Sub-Branch Shajib Shabbir Villa,Gazipur City Corporation,Konabari(Metro),Gazipur Onsite Mirzapur Bazar Branch
44 Nurjahan Road Sub-Branch House: 1/9 Road: NoorJahan Road, Block: D, Police Station: Mohammadpur, Post office: Mohammadpur-1207, Dhaka Onsite Dhanmondi Branch
45 Panchar Dia-Moni Plaza (1st Floor), Panchar, Shibchar, Madaripur Onsite Panchar Branch
46 Panchrukhi Panchrukhi Bazar, Araihajar, Narayanganj Onsite Panchrukhi Branch
47 Paragram West Paragram Bazar, Nawabganj, Dhaka (Right side of Singair Road) Onsite Paragram Branch
48 Rajshahi Rahamania Tower, Holding-57,58 & 60, Ganok Para, Station Road, Ward-12, P.S.-Boalia, Dist- Rajshahi Onsite Rajshahi Branch
49 Rajshahi City Corporation Sub-Branch Nagar Bhaban, Holding No-142, Greater Road, Ward No-13, Rajshahi City Corporation, P.S-Boalia, Dist.-Rajshahi Onsite Rajshahi City Corporation Sub-Branch
50 Rangpur Branch GRG Sunshine Tower, Holding # 3434, Road # 01, Dhap Jail Road, Rangpur Onsite Rangpur Branch
51 Rupnagar Sub-Branch House # 56, Road # 19, 1st Floor, Rupnagar, Mirpur, Dhaka Onsite Mirpur Branch
52 Shahjadpur Sub Branch Sahajadpur CCMPSL Bhaban, Sahajadpur, Sirajgonj Onsite Bogura Branch
53 Shashongacha Meem Tower, Shashongacha, Adarsha Sadar, Cumilla Onsite Shashongacha Branch
54 Shibgonj Sub-Branch Holding Number: 683, 1st Floor, Tamabil Road, Shibgonj, Sylhet Onsite Shibgonj Sub-Branch
55 Sompara Bazar Hai Mansion (1st Floor), Holding No. 365, Kochua Bottoli Road, Sahapur, Chatkhil, Noakhali Onsite Sompara Bazar Branch
56 Sreenagar Sub-Branch Sreenagar Plaza, Kancha Bazar Road, Sreenagar Bazar, Sreenagar, Munshiganj Onsite Sreenagar Sub-Branch
57 Sylhet M.S Tower (Ground floor), Mirboxtola, Chowhatta, Sylhet Onsite Sylhet Branch
58 Uttara ABC Heritage (Ground Floor), Plot 2 & 4, Sector 3, Jashimuddin Avenue, Uttara Model Town, Dhaka Onsite Uttara Branch
59 Uttara Shahjalal Avenue Sub Branch House: 02, Road:13/C, Sector: 06, Shahjalal Avenue, Uttara, Dhaka. Onsite Uttara Shahjalal Avenue Sub Branch
60 Valuka Jamirdia, Masterbari, Valuka, Mymensingh Onsite Valuka Branch
61 Valuka Branch GRG Eslite Garments (BD) Ltd. 1125, Jamirdia (Square Master Bari, ideal More), Hobirbari, Valuka, Mymensingh Offsite Valuka EsliteGMS GRG
62 Zirabo Razzak Commercial Complex, Zirabo, Ashulia, Savar, Dhaka Onsite Zirabo Branch
63 Bogura Sub-Branch Poura Bhaban, Bogura Pourashava, Bogura Onsite Bogura Branch
64 Madani Avenue Sub-Branch Sajid Plaza, Holding No - 46 Madani Avenue, Ward No – 40, Dhaka North City Corporation, Police Station – Vatara, District – Dhaka Offsite Gulshan Branch
65 Southeast University NCR Tejgaon Campus Southeast University NCR Tejgaon Campus Onsite Banani Branch

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Midland Bank PLC.
256 Annual Report 2023
NOTICE OF THE 11TH (ELEVENTH) ANNUAL GENERAL MEETING (AGM)
Notice is hereby given that the 11th (eleventh) Annual General Meeting (AGM) of the Shareholders/ Members of Midland Bank PLC. will be
held on Thursday, 13th June 2024 at 09:30 AM using Hybrid System in combination with Physical Presence of the shareholders at Banquet
Hall of Kurmitola Golf Club and Digital Platform to transact the following businesses and adopt necessary resolutions:

1. To receive, consider and adopt the Directors’ Report and Audited Financial Statements of the Bank for the year ended 31st December,
2023 together with Auditors’ Report thereon.
2. To declare dividend for the year ended 31st December, 2023.
3. To retire and elect/re-elect Directors.
4. To appoint Statutory Auditor(s) of the Company for the period until the 12th Annual General Meeting and to fix their remuneration.
5. To appoint Corporate Governance Compliance Auditor for the year 2024 as per Corporate Governance Code of BSEC and to fix their
remuneration.
6. To transact any other business with the permission of the Chair.

By order of the Board,

Dated: Dhaka
21st May 2024
Khalid Mohammad Sharif FCS
Company Secretary
Notes:
a) The Board of Directors has recommended cash dividend @ 5% for the year ended 31st December, 2023, which will be placed before
the Shareholders in the 11th AGM of the Bank for approval.
b) 20th May, 2024 was fixed/scheduled as Record Date. The Shareholders, whose names appeared in the Register of Members of the
Bank and/or in the Depository on the Record Date, are eligible for dividend and attending the meeting.
c) A member eligible to attend and vote at the Annual General Meeting (AGM) may appoint a proxy to attend and vote on his/her behalf.
The Proxy Form, available in the website (https://www.midlandbankbd.net/annual_report/) duly stamped and signed by the
member must be deposited at the Registered Office at least 48 hours before the time for holding the meeting.
d) The Annual Report 2023 of Midland Bank PLC. will be sent to the respective Shareholders’ email IDs available with CDBL on Record
Date and the link of AGM will be available in the web site of the Midland Bank PLC. in due course.
e) Depository Participants (DP)/ Stock Brokers are requested to send the list of Margin Account Holders based on Record Date, if any,
within 06th June 2024 to the Bank. Otherwise, the dividend will be paid to shareholders’ Bank Account as per CDBL Record.
f) Existing External Auditor M/s. Hoda Vasi Chowdhury & Co., who has conducted the statutory audit works for the financial year 2023
(second tenure), expressed their inability vide letter dated 18th April 2024 to continue for the third consecutive year, as Bangladesh
Bank has imposed restriction to conduct statutory audit beyond 6 (six) banks and NBFIs in a financial year. The Board of Directors
has decided to place recommendation before the shareholders in 11th AGM for appointment of M/s. Hussain Farhad & Co. Chartered
Accountants as External Auditors of the Bank to conduct audit works for the year 2024 (until 12th AGM).
g) As per Corporate Governance Code issued by BSEC dated 3rd June, 2018 the professional who will provide the certificate on
compliance of Corporate Governance Code shall be appointed by the shareholders in the Annual General Meeting. M/s. K. M. Hasan
& Co., Chartered Accountants provided certification, which is being placed in the 11th AGM. As, M/s. K. M. Hasan & Co., conducted the
compliance audit in the preceding of 7 (seven) years (since 2017), the Board has recommended a new compliance auditor for the year
2024. The Board of Directors has decided to place a recommendation before the shareholders in 11th AGM for appointment of M/s.
Islam Jahid & Co., Chartered Accountants for providing certification on compliance of Corporate Governance Code for the year 2024
(for placing in the 12th AGM).
h) Annual Report 2023 is available in the website of Midland Bank PLC. : https://www.midlandbankbd.net/annual_report/

QR Code:

To join the 11th AGM To download

Annual Report
AGM Notice
and Proxy Form

AGM Notice
Midland Bank PLC.
257 Annual Report 2023
 Head Office: N.B. Tower (Level 6 to 9), 40/7 North Avenue, Gulshan 2, Dhaka 1212, Bangladesh
Phone: +88 09666 410999 (Ext. 999-722) Fax: +88 02 8837 735, Email: [email protected], Web: www.midlandbankbd.net

Proxy Form
I………………………………………..........................................................................................................................................................................................................................................................................................……………..…………………………………………….of

……………………………............................................................................................................................................................................................................................................................................................……………………………………………………………………........

being a member of “MIDLAND BANK PLC.” do hereby appoint………………....................................................................................................................................................................................………...

of…………………………………….......................................................................................................................................…………… on failing him .............................................................................................................................................................

of ...............................................................................................................................................................................................................................................................................................................................................................................................

as proxy to attend and vote for me on my behalf at the 11th (Eleventh) Annual General Meeting (AGM) of the Company on June 13, 2024,
Thursday at 9:30 a.m. using Hybrid System in combination with Physical Presence of the shareholders at Banquet Hall of Kurmitola Golf
Club and Digital Platform or at any adjournment thereof.

AS WITNESS MY HAND THIS ................................................................................................................................................ DAY OF ..................................................................................................................... 2024

Signature of Proxy : …………..................................................................................……………………………

Affix Revenue
Stamp of Tk.100.00

Signature of Shareholder : ...........................................................…………………………………………

Folio/BO ID : …………............................................................................................................................................................................................................................................................................................................................……………..…………

No. of Shares : …………........................................................................................................................................................................................................................................................................................................................……………..…………

Notes:
1. Signature must agree with the recorded signature.

2. A Member entitled to attend and vote at the 11th (eleventh) AGM may appoint a proxy to attend and vote in his/her behalf. The Proxy
Form duly signed and stamped must be deposited at the Head Office of the company at least 48 hours before the time set for the
Meeting

Shareholders are hereby informed that due to restriction imposed by Bangladesh Securities and Exchange Commission there shall
be no arrangement for any sort of gift/ entertainment in the Annual General Meeting of the Company.

Proxy Form
Midland Bank PLC.
259 Annual Report 2023
Head Office: N.B. Tower (Level: 6 to 9), 40/7 North Avenue, Gulshan 2, Dhaka 1212, Bangladesh
PABX: (+88) 09666 410 999, Fax: (+88) 02 5505 2214, SWIFT: MDBLBDDH
Email: [email protected], Web: www.midlandbankbd.net
Contact Centre: 16596, (+88) 096 170 16596, (+88) 096 110 16596