CPAbRating Report (Surveillance)

Jamuna Bank LimitedRatings

Lono Term : Ar

ShortTerm :_ ST-2

Outlook ; Stable

Date of Rating:l 8 May 2Ol4

Val id i ty : 3OJune 2015

Rat ingBasedon:Audi tedf inancia l s tatementupto3l December20l3andotherre levantquant i ta t iveaswel l as

qualitative information up to the date of rating declaration.

Methodology: CRAB's Bank Rating Methodology (www.crab.com.bd)

^***

Shahtaj Noorshahtaj. noor@crab.com. bd

Tahmina lslamtahmina. islam@crab.com.bd

ts|tgll*Loans

Depos i t

Gross NPL 5 ,133 .8 5 ,337 .9

NIM

ROM (after tax) 1 . 0

Cost to lncome Ratio 47,3 39.3

Cross NPL Ratio 7.6 9.7

SMA to Total Loans 3 .5 8.0

RWCAR 12.2

r coRPoRATE PRortre

Jamuna Bank was incorporated on 2 April 20Ol as apublic Limited Company and started its operation

from 3 June 2001. The Bank went to IPO in 2006 and

its shares are l isted with Dhaka Stock Exchange and

Chittagong Stock Exchange. Presently the Bank has

91 branches across the country inc luding 2 ls lamic

Banking Branches and 8 SME centers. The paid up

capi ta l o f the Bank reached BDT 4,487.5 mi l l ion as of

31. t December 20. l3 against author ized capi ta l o f

BDT , l0 ,000.0 mi l l ion. The Bank of fers a l l k ind of

banking and investment services for retail and

corporate customers. The Bank provides online

banking service and has a countrywide shared ATM

network. The Bank has two subsidiary companies;

Jamuna Bank Secur i t ies L imi ted and Jamuna Bank

Capi ta l Management L imi ted.

CRAB ICMB Ratings on Corporate Credit Digest | 20 May 2014

67,669.4 54,887.0

97,485.6 79,623,1

Rnror.InLr

Credit Rating Agency of Bangladesh Limited (CRAB)

has affirmed Ar (Pronounced Single A one) rating

inthe long term and ST-2 rating in the short term to

Jamuna Bank Limited based on audited financials up

to 31 't December 2A13 and other relevant

information.

The rating reflects the Bank's strength in risk

weighted capital adequacy and high quality of l iquid

asset as well low exposer in capital market. The

rating also considers the Bank's large netlvork of 91

branches. On the other hand, the rating is

constrained by high non-performing loans, lower net

interest margin and high cost to income ratio.

Sound Capitalization: Total capital (t ier 1 +tier 2) of

the Company was BDT 9,259.B mi l l ion in 2013

having risk weighted capital adequacy ratio of 1 1.1%(tier I ratio: 9.394. About 4?.6% of total corporate

loan exposures are rated. Tier I capital as percentage

of total exposer (balance sheet and off balance

sheet) of the Bank was 5.4% atthe end of 201 3.

Moderate Liquidity Profile: Loans to deposit ratio of

the Bank was 69.4% at the end of 201 3 with a

monthly average of 73.6%. The Bank's l iquid asset to

total deposit & borrowings was 4l .1%in 2O13 as the

Bank operates as primary dealers of government

securit ies for which it had to hold substantial

amount of Covernment securit ies.

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