Investment Corporation of Bangladesh (ICB)The Investment Corporation of Bangladesh (ICB) was established on 1 October 1976, under“The Investment Corporation of Bangladesh Ordinance, 1976” (no. XL of 1976).Theestablishment of ICB was a major step in a series of measures undertaken by the Government toaccelerate the pace of industrialization and to develop a well-organized and vibrant capitalmarket particularly securities market in Bangladesh.ICB is a statutory corporation. It is mainly an investment bank. (As an investment bank is afinancial institution, which mobilized fund from the surplus economic units by savings securitiesand developed funds to the deficit economic unit also by buying/underwriting securities.)OBJECTIVES OF ICB:To encourage and broaden the base of investment.To develop the capital market.To provide for matters ancillary thereto.To mobilize savings.To promote and establish subsidiary companies for business expansion.BASIC FUNCTIONS OF ICB:Direct purchase of shares and debentures including Pre-IPO placement and equityparticipation.Providing lease finance to industrial machinery and other equipments singly or byforming syndicate.Underwriting of initial public offering of shares and debentures.Underwriting of right issue of shares.Managing investors’ Accounts.Managing Open End and Closed End Mutual Funds.Operating on the Stock Exchanges.Providing investment counsel to issuers and investors.Participating in Government divestment Program.Participating in and financing of, joint-venture projects.Introducing new business products suiting market demand.Providing Consumer Credit.Providing Bank Guarantee.ØTo act as Trusty and Custodian.Dealing in other matters related to capital market operations.
FINANCIAL RESULTS:Total Income:In 2009-10 ICB earned a total income of Tk.527.62 crore as compared to Tk.364.21 croreearned in 2008-09 showing an increase by 44.87 per cent. The major heads of income ofICB were interest income, capital gain, dividend income and income from fees andcommissions. During. Of the total income of Tk.527.62 crore, the highest income beingthe capital gain of Tk.262.9 crore (49.83 %). Divided income increased due tosatisfactory dividend performance of maximum companies.Total expenditure:During 2009-10, the total expenditure amounted to Tk. 314.57 crore as compared to Tk.252.58 crore in 2008-09 showing a decrease of 24.54% over the previous year. The majorheads of expenditure were: interest expense of Tk. 157.71. During the year, provision ofTk.2.02 crore was provided against loans and advances. In addition, Tk.100.0 crore hasbeen set aside against future diminution in the value of marketable securities held in theown portfolio, possible fluctuation of stock market indices and present booming marketcondition.Gross Profit:The gross profit before provision and tax was Tk.340.07 crore in 2009-10 compared toTk. 170.04 crore in 2008-09, showing an increase of 99.99% over last year.Net profit:During 2009-10, ICB’s net profit after tax increased to Tk. 213.05 crore from Tk. 111.63crore in 2008-09, showing an increase of 90.85 percent.Dividend:The Board of directors of ICB recommended cash dividend as the rate of Tk. 15.00 pershare and 1:4 stock dividend for 2009-2010. Cash dividend of Tk. 5.00 per share and 1:1stock dividends were paid in the previous year.Appropriation of Profit:The Board of Directors of ICB recommended appropriation of Tk. 222.25 crore whichincludes net profit of Tk. 213.05 crore of 2009-10 and retained profit of Tk. 9.2 crore ofthe previous year and others in the manner:Figure: Appropriation of profit of 2009-10 (crore)