Investment Corporation of Bangladesh (ICB) established on 1 October 1976 under the Investment Corporation of Bangladesh Ordinance 1976. It is an investment bank established to accelerate the pace of industrialisation and develop a sound securities market in Bangladesh.

Initially, the activities of ICB were limited to underwriting public issue of shares, bridge financing, debenture financing and opening/maintaining investors' accounts (Investors' Scheme). ICB had largely expanded its areas and scope of activities and now provides various types of investment and banking services. Added activities include providing debenture loans to companies and loans to investors on margin trading basis, providing advances against ICB unit certificates, leasing of industrial equipment, managing unit fund and mutual funds, and participating in stock exchange for trading securities.

Initially, the authorised and paid up capital of the corporation was Tk 200 million divided into 2 million shares of Tk 100 each, subscribed by the government of Bangladesh (27%), bangladesh bank (12%), bangladesh shilpa bank (6%), bangladesh shilpa rin sangstha (6%), Nationalised Commercial Banks (15%), sadharan bima corporation (9%) and the general public (25%). The authorised and paid up capital of ICB was increased in 1999-2000 to Tk 1,000 million and Tk 466 million respectively. ICB is a listed company in both Dhaka and Chittagong Stock Exchanges. The reserve fund of the corporation was Tk 425.08 million on 30 June 2000 and the types of reserves were general reserves, building reserves and dividend equalisation reserves.

Total fund of ICB during the year 1999-2000 was Tk 6,784.84 million which comprised shareholders' equity i.e., share capital, reserves and retained profits (Tk 894.97 million), long-term debts Tk 1,153.81 million, deferred interest (Tk 292.72 million), deferred liabilities (Tk 18.81 million), lease deposits (Tk 0.66 million), and other liabilities (Tk 4,423.83 million).

On 30 June 2000, the total value of assets of ICB were valued at Tk 6,784.84 million comprising marketable securities (Tk 2,391.52 million), secured margin loans (Tk 1,503.40 million), unit advance account (Tk 19.60 million), bridging loan (Tk 339.44 million), debenture loans (Tk 4.40 million), leased equipment (Tk 7.95 million), and cash in hand and at banks, interest receivables and the premises and equipment under its own use.

Since its inception up to 30 June 2000, ICB committed to provide a total of Tk 2,496.8 million in loans to 353 projects and it disbursed Tk 1,141.2 million to 307 of them. It acted as the trustee to the debenture issue for 12 companies and as manager to the issue for 39 companies. Advances Against Unit Certificate Scheme (introduced 1998) were Tk 43 million, cumulative amount of lease financing amounted to Tk 73.9 million involving 14 companies, and total net underwriting cum bridging loan commitment was Tk 1,164.80 million to 306 companies. ICB committed to provide net assistance in the form of direct underwriting of shares of Tk 702.6 million of 37 projects and debentures of Tk 120 million of 5 projects.

As on 30 June 2000, the total gross outstanding loans of ICB stood at Tk 4,775.1 million and it recovered Tk 1,315.70 million. Up to the date, ICB floated 8 closed-end Mutual Funds with total paid up capital of Tk 175 million. The dates of issue of these Mutual Funds were 25 April 1980, 17 June 1984, 19 May 1985, 6 June 1986, 8 June 1987, 16 May 1988, 30 June 1995, and 23 July 1996. As on 30 June 2000, the cumulative net sale of units amounted to Tk 5,280.8 million for 42,985,690 units. The ICB unit certificates earned a net income of Tk 528 million during the year 1999-2000. The total number of unit holders on 30 June 2000 was 43,433 of which 58% were salaried employees of government and private organisations.

The corporation introduced its Investors' Scheme in 1977. Under the scheme, it received a total deposit of Tk 22,177.5 million up to June 2000, while loans sanctioned and investments made amounted to Tk 3,715.2 million and Tk 4,410.6 million respectively. During the year 1999-2000, the corporation invested Tk 978.9 million in securities and on 30 June 2000, the market value of its portfolio stood at Tk 1,945.9 million. During the fiscal year 1999-2000, the corporation earned a net profit of Tk 59.4 million

Besides its head office and the local office in dhaka, ICB has 6 branch offices, one each at chittagong, rajshahi, khulna, barisal, sylhet and bogra. The head office has 4 broad divisions/wings and 31 departments under them. In 2001, ICB had 394 employees including 242 officers and 152 other staff. The managing director is the chief executive officer of the corporation and an 11-member board of directors is its top policy making body.

With the enactment of the Investment Corporation of Bangladesh (Amendment) Act, 2000, ICB became empowered to create and operate subsidiaries. ICB has a plan to form three separate subsidiary companies - ICB Capital Management Ltd, ICB Securities Trading Company, and ICB Asset Management Company Ltd. ICB is represented in the governing board of the South Asian Development Fund established in June, 1996 through the Dhaka Declaration of a meeting of the SAARC member countries. ICB is also associated with South Asian Regional Fund (SARF). [S M Mahfuzur Rahman]