Interest Payment - Uses of Funds

Uses of Fund

Interest payment

The funds collected are used to make payments on interest expenses incurred, which includes the interest payments that need to be paid out to both depositors as well as lenders. For DBBL, interest payments amounted to BDT 5,682 million.

Operating expenses

It includes the expenses incurred in order to keep the organization functioning.

a. BDT 3,049 million to be spent for the salaries and allowances of employees.

b. BDT 5,787 million to be paid to suppliers for providing goods and services.

c. BDT 1,573 million was written off as depreciation.

Loan Provision and Other Provisions

Loan loss provision is an expense set aside as an allowance for uncollected loans and loan payments, which for DBBL amounted to BDT 2,288 million. The figure includes other provisions deemed necessary by the bank.

Taxes

Tax payments made by DBBL can be divided into two parts. Primarily, the amount included the amount to be paid as income tax to the government, which in this case was BDT 2,150 million. The remaining BDT 678 million was the amount of deferred tax.

Statutory Reserve Fund

Statutory reserve fund is the minimum amount certain institutions and insurers must maintain as liquid funds. The reserve's purpose is to prevent the institution from being insolvent. DBBL maintains a statutory reserve fund of BDT 647 million.

Payments to shareholders

BDT 600 million was paid out as cash dividends to shareholders and BDT 200 million was allocated to dividend equalization fund. No bonuses were paid out. BDT 316 million was constituted to retained earnings.

Investments

The majority of investment(BDT 31,778 million) was in the form of .government treasury bills and bonds. A smaller amount of BDT 487 million was invested in subordinated bonds and shares. Thus, DBBL invested a total of BDT 32,625 million in the money market.