Incorporation & Business ActivitiesThe Demerara Bank Limited was incorporated on January 20, 1992 as a private limited liability company under the provisions of the Companies Act, Chapter 89:01 and was licensed to carry on the business of Banking on October 31,1994. The Bank obtained Certificate of Continuance on April 2, 1997 in accordance with the Companies Act 1991. The Bank offers a complete range of banking and financial services and operates under the Provisions of the Financial Institution Act (Act 1 of 1995).
Significant Accounting Policies1. Basis of Preparation
The financial statements are prepared in Guyana Dollars under the historical cost convention and conform, in all material respects, to the requirements of International Accounting Standards.
Monetary assets and liabilities denominated in a foreign currency are translated at current rates of exchange, except as otherwise stated. Foreign exchange positions are valued daily at prevailing rates and exchange adjustments are included in other operating income.
3. Investments Investments in Government of Guyana
Treasury Bills are stated at cost adjusted for accretion of discount on a straight line basis. Discount accreted is included in the income statement under interest income on Treasury Bills.
4. Loans and Interest
Loans are stated net of any unearned interest and of any allowance for loan losses. Interest income is accounted for on the accrual basis for all loans other than non-accrual loans. A loan is classified as non performing whenever in management's opinion, there is reasonable doubt regarding the collectibility of principal and interest or the payment of interest is ninety days past due. Upon classification of a loan as non-performing, recognition of interest in accordance with the terms of the original loan ceases. Loans are generally returned to accrual status when the timely collection of both principal and interest is reasonably assured and alldelinquent principal and interest payments are brought current.
5. Allowance for Loan Losses
The Bank maintains an allowance for loan losses which consists of specific provisions where appropriate and a general provision determined in accordance with the Financial Institutions Act 1995. Specific provisions are established as a result of detailed reviews of individual loans and advances and reflect an amount which in management's judgment, provides adequately for potential losses. Factors considered in such analyses include loan portfolio characteristics, economic conditions and other developments affecting recovery of loan balances.
Depreciation of bank premises excluding land, motor vehicle and furniture and equipment is provided over the estimated useful lives of the respective assets using the straight line method. Expenditure for major improvements to premises and equipment are capitalised, while those for maintenance and repairs are charged to expense as incurred. The following annual depreciation rates are applicable for the respective asset categories. Building 2% Furniture & Equipment 10% Motor Vehicles 20%
7. Acceptance, Guarantees and Letters of Credit
The Bank's potential liability under acceptances, guarantees and letters of credit is reported as a liability in the balance sheet. The Bank has equal and offsetting claims against its customers in the event of a call on these commitments which are reported as an asset.
To help build a stronger, healthier more diverse business sector
through prudent investment, attractive deposit plans and
innovative lending policies.
To provide the financial support that will demonstrate the bank’s commitment to business development and to a better Guyana.
To provide a diversified range of quality financial services through its worldwide network of Major Correspondent Banks.
To provide employees with excellent opportunities for personal growth and development.
To provide investors with and attractive rate of return on their investment.
To be a responsible corporate citizen.
"To excel in providing innovative and superior banking services, through well trained, dedicated and courteous staff in the interest of our customers, and shareholders and to fulfil our social responsibilities through meaningful involvement in community development."
The elements of the Demerara Bank Logo design are drawn from the very source of the inspiration that created such an enterprise.
The relentless force of the mighty Demerara River, which gives the Bank its name, is depicted in the six golden streams that flow from a stylish spring in an upward motion.
The Six streams or six people, symbolise the diverse race, and cultures that move together towards a common Guyanese destiny.
The colours gold and green have been chosen for their affinity to the Guyanese landscape and the riches of the abundant natural resources for which the country is famous.
The Demerara Bank stands proud and secure, reflection its commitment to Guyana and confidence in the future.
The idea of a private sector bank was conceived by Yesu Persaud in the late sixties. It was held in abeyance but reactivated in 1991, at a time of Glasnost and more international openness.
The process of liberalisation had just begun, with the shift from rigidly controlled to a more open economy emerging. Yesu Persaud’s entrepreneurial instincts, coupled with his solid understanding of the economy, led him to the view that there was a need for a truly Guyanese bank – a bank that would capture the latest technology, yet offer a very personal, high quality and competitive service; a bank that would provide export trade finance, recognising that the economy had to be exportoriented; a bank that would be innovative in its approach and its products; indeed, a bank that would act as a catalyst for growth.
It was the beginning of another chapter in Guyanese history, the first private sector indigenous bank was in the making. The company, Demerara Bank Limited, was incorporated on 20th January, 1992. A share capital of $ 250M was required. Mr. Yesu Persaud’s vast personal and indeed corporate connections, acquired through his chairmanship of Demerara Distillers Limited, both local and overseas, were tapped to secure backing for this venture. It received overwhelming support and was very largely over-subscribed.
On 12th November, 1994, Demerara Bank Limited was declared open by His Excellency, Dr. Cheddi B. Jagan, President of the Cooperative Republic of Guyana.
Conceptualising an idea, nurturing and finally bringing it to fruition, is a skill few possess. To do it for the good of a nation is even more rare. Yet Yesu Persaud has done it without receiving any consideration in any form. The nation is richer for it and Demerara Bank Limited owes a debt of gratitude to him.
- Dr. Yesu Persaud
- Mr. Pravinchandra Dave
- Chief Executive Officer
- Mrs. Chandra Gajraj
- Mr. Komal Samaroo
- Dr. Leslie Chin
- Mrs. Sheila George
- Mr. William Barrow
- Mr. Hemraj Kissoon
- Mrs. Chandra Gajraj
Registrar & Transfer Office
Trust Company (Guyana)Limited
- 1st Floor, Demerara Bank Building
- 230 Camp & South Streets
- Georgetown, Guyana
Nizam Ali & Company
- Chartered Accountants
- 215 'C' Camp Street, North Cummingsburg
- Georgetown, Guyana
Attorneys at Law
De Caires, Fitzpatrick & Karran
- 80 Cowan Street, Kingston
Persaud and Associates
- 1 Croal Street