Business Potential of CBSIL

CBSIL is a subsidiary fully owned by Bangladesh Commerce Bank Ltd. (BCB). The investors are supposed to be comparatively comfortable to deal with CBSIL with higher level of confidence and trustworthiness.

The Board of Directors of the Company consisting of highly skilled, experienced and capable Directors whose visionary guidelines and policies are very much conducive and market friendly which may be considered as pivotal force for business growth of the Company.

The Company being a subsidiary of a Bank, enjoys various types of supports required for business growth of the Company. The Board of Directors of the Bank also reviews the operational activities of the Company and suggests various measures for the overall development of the Company.

Being a subsidiary of the bank, the Company strictly adheres to the principles of corporate governance which is conducive for attainment of planned and concerted development.

There exists a few Board approved policies and programs, motivational schemes, both for the clients and employees, which being uniform in nature, may act as motivational force for performance development.

Company’s emphasis on recovery of margin loan in recent years improved its liquidity position.

Presently, the Company is fully equity based, therefore, there is no interest cost element under operating expense which is a salutary to reduction of operating cost.

The Company has a team of highly educated, young and experienced officers.

There are 08 (Eight) trading units 06 (Six) branches and 02 (Two) extensions of head office in Dhaka, Narayanganj and Chittagong which are well-decorated comparable with other Companies in the industry.

Presently, the investment size in Dealer account is not high. There is scope of enhanced investment and income if prudently managed in the backdrop of present market scenario and comparatively low market P/E.

Recently, an increased trend in the IPO has been observed. Since, the IPOs are will be routed by the brokerage houses and merchant banks, there is scope of earning enhanced commission income and short term interest. Besides, increased quota in IPOs for EIIs, would help the Company earning more.

At the moment, signs of political stability of the country are at sight. If it sustains, the macro-economic variables are expected to move positively contributing favorably to the National Economy along with Capital Market.

Pragmatic margin loan recovery policy has already been devised whereby it is expected that provision shortfall would be gradually covered to enable the Company paying dividends to its valued shareholders.