55429556 Intern Report BRAC Bank | Credit (Finance) | Cheque

Executive Summary

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This is the internship report based on the three months long internship program that I had experienced in the Head Office of BRAC Bank Ltd. From May 18, 2008 to August 17, 2008 as a requirement of my BBA program under Department of School of Business, North South University. This report is divided into two broad parts: one is the organization part and another is the project part. In the organization part, I introduced the Latest and one of the largest banks of our country— the BRAC Bank Ltd. On the other hand, in the project part, I focused on the findings, graphs and analysis of the research. The topic of my report was “Premium Banking Service to the customers”. My focus of the report will be basically on the functions of Premium Banking only. The specific objective of this study was to explore the relationship between client satisfactions and the degree of consumer service delivery, the degree of CSD in context of the BRAC Bank Ltd. While discussing the different aspects and functions of the bank, priority has been given to depict the real situation as far as appraisal and management system of BRAC Bank Ltd. are concerned by employing the experience gathered during the internship program. Analysis on the findings is basically done to sort out the major aspects of the General banking system and to draw some significant inferences. At the same time for easier understanding of the report, supporting topics and terms are explained in light of textbooks and regulatory guidelines. BRAC Bank is a third generation bank in the growing banking sector of Bangladesh. As a part of my internship program I got a chance to work at this bank for a period of three months. During this period I have learned about this organization and its work environment, which inspire me to work on my topic.

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Chapter 1

Organization Part

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Introduction:
For a country, the banks are the heart and soul of the financial system. Therefore, the sound and efficient performance of the banks are very much essential for the sustenance of the financial system or economy of the country. Like other organizations, banks are also dependent upon the consumers for their survival in the market. Modern banks play vital role in promoting economic development of a country. Banks provide necessary funds for executing various programs underway in the process of economic development. They collect savings of large masses of people scattered through out the country, which in the absence of banks would have remained idle and unproductive. These scattered amounts are collected, pooled together and made available to commerce and industry for meeting the requirements. BRAC Bank Ltd. is one of those banks that plays important role in the economy of Bangladesh. There are thirty six branches of BRAC Bank all over the country. The activities of different department are differences as per the important of the department. The format of the report will be followed as per the guideline given by the North South University authority.

History of the BRAC Bank:
BRAC Bank Ltd, a full service commercial bank with Local and International Institutional shareholding, is primarily drive by creating opportunities and pursuing market niches not traditionally met by conventional banks. BRAC Bank has been striving to provide “best-in-the-class” services to its diverse range of customers spread across the country under an on-line banking platform. Today, BRAC BANK Limited, one of the latest generation of commercial banks which started its journey on the 4th of July 2001 with a vision to be the absolute market leader through providing the entire range of banking services suitable to the needs of modern and dynamic banking business as well as to promote broad based participation in the Bangladesh economy through the provision of high quality banking services. The unique strength of BRAC Bank lies in the fact that BRAC one

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Corporate Division provides full range of commercial banking products and services to any potential corporate clients including multinationals. It also offers different types of term deposit scheme and attractive STD & Savings deposit schemes giving interest on daily balance. associates and communities upon. institutional bodies. healthy. The reason BRAC Bank is in business is to build a profitable and socially responsible financial institution focused on markets and businesses with growth potential. large or medium local corporate. democratic and poverty free Bangladesh. shareholders. 4 . Small and Medium Enterprise (SME) and Foreign Trade & Treasury. enlightened. which the future prosperity of their company rests. BRAC Bank fulfils the purpose by reaching for high standards in doing everything for their customers.of the world’s largest private development organization is its key shareholder and the bank’s vision are thus aligned with those of BRAC. Retail Banking Division. The aim of the program is to introduce easy and secured remittance service whereby people will be comfortable and secured in remitting funds without hassle and delay. BRAC Banks envisages providing mass financing by increasing access to economic opportunities for all individuals and business in Bangladesh with a special focus on currently underserved enterprises across the rural-urban spectrum. BRAC Bank is surviving in the large banking arena through its unique and competitive products and it is the only local bank providing 100% integrated on-line banking services. NGOs. Retail Division offers a wide array of lucrative and competitive banking products to the individual customers of the bank. As part of the total banking solution it has introduced an innovative and one of its kinds Remittance Service under the style and name “Secured & Easy Remittance Service” (SERS). Using the countrywide network of BRAC comprising more than 1100 field offices the SRS will ensure secured and only 24 hour lead time delivery of remittance anywhere in Bangladesh. Currently there are six lending products and a number of other attractive new products will be launched shortly. thereby assisting BRAC and stakeholders build a “just. BRAC Bank Limited consists of four major business divisions namely Corporate Banking Division.

The Bank is pioneer and focused on pursuing unexplored market niches in the Small and Medium Enterprise Business. Shareholders of BRAC Bank Ltd: The shareholders of BRAC Bank are as follows: Table 1.BRAC Bank Limited. hereinafter called BBL. BBL caters the banking services to its rapidly growing customers through 18 branches and 292 SME Unit Offices. The main sponsor of the bank is the BRAC.50% 8.1: Shareholders of BRAC Bank 5 . which hitherto has remained largely untapped.74% 9. BBL believes. this sector of the economy can contribute the most to the rapid generation of employment in Bangladesh. is a fist growing third generationscheduled commercial bank incorporated on 20th May 1999 as a public limited company under Companies Act.76% 40% 5% 5% 100% Fig. 1994 with multinational collaboration including IFC of The World Bank Group & Shore Cap. BBL started its operation on 4th July 2001.1: Shareholders of BRAC Bank Shareholders BRAC IFC Shore Cap International General Public through IPO Non-Residents Bangladeshi's Mutual Funds through IPO Total Percent 31. 1.

Muhaimen Status with the Bank Chairman Director Director Director Director Director (Independent) Managing Director and CEO Management of BRAC Bank Ltd: The Board of Directors is the top management and policy-making body of BRAC Bank limited. (Rumee) Ali Mr. The officers and the other line and staff personnel are appointed by Bank’s own Recruitment Committee. Shariful Ala Mr. It is to be noted that the Managing Director. 1. Muhammad A. 04. Quazi Md. 07. trade. The Chief Operations Officer executes all the activities under the direction of the Board. Nihad Kabir MR. 05.Board of Directors: Table 1. Name Mr. Coffey(Nominated by SHORECAP INTERNATIONAL LIMITED) Ms. commerce. Managing Director Deputy Managing Director EVP & Chief Operation Officer VP & Head of SME A VP & Head of Credit Fig. Mark A.2 presents the names of BRAC bank directors and their status.2: Board of Directors of BRAC Bank SL. industry agriculture. 03.2: Management Structure 6 . The Directors are appointed from amongst those who have had experience and shown capacity in the field of finance and banking. is also a member of the Board.E. 02. Table 1.A.# 01. 06. Tamara Hasan Abed Mr. Shib Narayan Kairy Ms. Presently the Board consists of a chairman and four directors. A.

healthy.A Muhaimen CEO &Managing Director Kaiser Tamiz Amin Chief Operations Officer Firoz Ahmed Khan Head of Retail Banking Md. Sarwar Ahmed Head of Impaired Asset Management Faruk Ahammad Head of Financial Administration Farzana Chowdhury Head of Small & Medium Enterprise (SME) Md. Of Branch Unit Office Staff Profit Before Tax ATM POS 7 .E. thereby assisting BRAC and stakeholders build a “just. Rafat Ullah Khan Head of Credit Rais Uddin Ahmad Head of Risk Management & Company Secretary Naushad Hussain Head of Probashi Banking Tahniyat Ahmed Karim Head of Human Resources Md. Highlight of Long Term Budget: Table 1. Rahmat Pasha Head of Treasury & Financial Institution Khwaja Shahriar Head of Corporate Banking Shah Alam Bhuiyan Head of Enterprise Risk Management Mizanur Rahman Chowdhury Head of Technology Abedur Rahman Sikder Head of Marketing & Corporate Affairs Vision: Building a profitable and socially responsible “Double Bottom Line” driven financial Institution focused on pursuing existing and underserved markets and business with growth potentia. enlightened.Management Team: A.3: Long Term Budget ACTUAL (2008) PROJECTED (2009) 36 60 381 450 2400 4100 60(crore) 232 (crore) 78 50 350 500 PARTICULARS Num. democratic and poverty-free Bangladesh”.

 Synergy between financial and non-financial institutions to develop innovative financial products for customers across rural-urban spectrum.  Continuous low-cost deposit growth with controlled growth in Retail Assets.  Expand use of technology and plastic to provide financial solutions to the mass and under-served market. Growth in Assets through Syndications and investment in faster growing sectors.  Corporate Asset to be funded through self-liability mobilization. Goals:  Create a new breed of entrepreneurs. efficiently and competitively to achieve per-eminent position in chosen market. far flung team fully motivated and driven towards materializing the Bank’s vision into reality.  Build awareness among Expatriate Bangladeshis to expand use of Banking channels for remittance. Objectives of the Bank:  To provide wide range of financial services professionally. 8 . SME unit offices and BRAC field offices for delivery of Remittance and Bank’s other products and services.  Keep a diverse.  Continuous endeavour to increase fee based income. which produces a reliable and consistent return to investment.  A Well-diversified credit portfolio.Mission:  Sustained growth in ‘Small & Medium Enterprise’ sector.  Manage various lines of business in a fully controlled environment with no compromise on service quality.  Diversity revenue stream through product innovation.  Keep our Debt Charges at 2% to maintain a steady profitable growth.  Achieve efficient synergies between the Bank’s branches.

 Have a strong Customer focus and build relationships based on integrity.  Leasing companies/Non banking financial institutions.  Information Technology.  Value and respect people and make decisions based on merit. This means. knitting. Industrial Raw Materials. toiletries.  Food Processing and Beverage Industries. oil exploration. chemicals and pesticides.  Relentless in pursuit of business innovation and improvement.  Non Governmental Organization (N.  Health Service Industry. and Cement. trustworthy and law-abiding in all that we do.  Base recognition and reward on performance. we will hold the following values and will be guided by them as we do our jobs.). 9 .  Edible Oil.  Work as a team to serve the best interest of our owners.  Responsible.O) and other international Development Organization. Target Market:  Pharmaceuticals.  Creating an honest.  Bulk Trading essential Commodities. open and enabling environment.  Garments. superior service and mutual benefit  Strive for profit & sound growth. yam.  Cable and Cable wire.  Value the fact that we are a member of the BRAC family.  Power Generation.Values of the Bank: Our Strength emanates from our owner BRAC. industrial and household gases (Liquid Petroleum Gases etc.G. Agricultural Inputs. Textiles and related backward Linkages industries including sinning. garments accessories etc.

The main objective of this automation is to provide efficient and prompt services to its valued clients. At present all the branches of the bank are computerized to provide best security to the information. Testing and Inspection agencies.  Corporate and Trading Houses. Importers/Dealers of machinery. industrial.  Educational Institutions.  Tobacco Products.  Bone china.  Tea. BRAC Bank Limited is providing comprehensive range of banking services with utmost care and efficiency to 10 .  Importers. Shipping Lines. Whole seller. electrical equipment. Freight Forwarders.  Footwear and Leather.  Educational Institutions.  Multinational Companies (MNCs’).  Air Lines. plastic products. Retailer.  NGOs’.  Local medium and large corporate.  Individual Information Technology in Banking Operation: BRAC Bank Limited has adopted automation in banking operation from the first day of its business.  Individuals. ceramics. Target Customer Group:  Leading Domestic Organizations. Corrugated Iron (CI) Sheet Mfg.  Contractor Finance.  Telecommunication. and related business.  Manufacturing and Trading of Consumer Durables. melamine. Re-rolling.  Ship Breaking.

 Conduct in-house training program on Bangladesh Bank & BRAC Bank Regulations. monitoring processes and efficient people. Challenges:  Ensure compliant BRAC Bank. Internet Banking and interfacing ATM Network through the Online Banking software which has been the major achievements. Initiatives:  Strength CSD tools by developing CSD Operation.  Develop and retain efficient human resources for CSD team. Several numbers of system analyst and programmers are dedicated towards development and customization of the software and after sale service. Consequently our Consumer is enjoying services from Anywhere Anytime.  Develop efficient working force by providing hands on training. BRAC Bank is the first bank to online the rural branches. relevant HR training courses.  ATM support.  Set Smooth and efficient Service delivery Process for our CONSUMER. Technology: BRAC Bank Limited Brings 36 branches under one umbrella. introducing SMS Banking.its Consumer.  Achieve satisfactory Audit rating for CSD. Corporate Social Responsibility: 11 .  Ensure efficient CONSUMER services to our internal and external clients.  Smooth operation of CSD functions.  Develop and implement quarterly self audit questionnaire. Ascend Millennium Banking System is developed and customized by South Tech Ltd.

70% of these children are female. As a bank BRAC Bank are socially responsible. Fifty percent of It’s Loan portfolio is diverted to Small and Medium Enterprise banking. The Brand Promise of BRAC Bank Ltd: The brand promise of BRAC Bank Ltd. is – Astha Obichol. LOGO: The logo of BRAC Bank has been prepared keeping in mind the goal of the organization. White circles in the blue color mean the flashing sun that gives light to everywhere. and as a financial intermediary it channel funds from the surplus ends to the needy. A portion of its revenue is channelled to support BRAC schools. where children study for free. Country-wide network of SME Units cater to the needs of small entrepreneurs to help them build their asset base. 12 . The square structure of the logo means solid and strong.Just as BRAC Bank have a corporate identity and also a social identity too. It is a Bengali word that denotes trust on BRAC Bank remains the same no matter what in terms of quality service. The Blue color in the upper portion means ‘the sky with enormous & unlimited opportunity’. The white colour curve means ‘Growth and Progress’. The Golden color in the lower portion of the logo means the ‘Golden Bangladesh & her fertile land’. striving for socio-economic upheaval in Bangladesh. BRAC Bank is market leaders in SME.

1.3: BRAC Bank Logo 13 .Fig.

placement & posting. Besides. recruitment. the bank from the very beginning laid importance to HRD that conceptually includes activities like: pre-recruitment drill. 14 .4.Organization Structure and Responsibilities: The five members if the Board of Directors is responsible for the strategic planning and overall policy guidelines of the bank. The CEO and MD assisted by a senior management group supervise operation of various decisions centrally and coordinate operation of branches. there is an audit committee in the Board to oversee compliance of major regulatory and operational issues. reward and promotion. Human Resource Development: Human Resources Development activities aim at fulfilling the bank's Mission. Therefore they have a training academy that is fully equipped with a professional library. There is also a management committee comprising member of the senior executive headed by CEO and MD to look into all operational function and risk management of the bank. The workflow of the organizational structure is given in Fig." Skilled and dedicated workforce with creative talents. innovative actions and competitive edge make our position unique in giving quality service to all institutions and individuals that we care for. 1. One of their four major missions is to: "Provide service to our clients with the help of a skilled and dedicated workforce whose creative talents. Meeting the needs of new skills arising out of Financial Sector Reforms Program (FSRP) is also a major concern of the management. The CEO& MD. modern training aids and professional faculty. Deputy MD and group executives are responsible for achieving business goals and overseeing the day today operations. training in the Academy. job rotation. Appreciating the scarcity of such manpower. Management of BRAC Bank not only appreciates the need of skills required for day to day banking but also realizes the need for skills to meet the global & national financial and economic environments that are changing fast. innovative actions are not always readily available. induction.

Fig. 1.The training academy of BRAC Bank re-designs its courses and programs regularly to meet the requirement of new skills and develop its human resources accordingly.4: Workflow of the organizational structure 15 .

: There are many concern departments. Among them 1020 employees are woman where as the number of female staffs were only 30 at the very beginning. 1. 8 branches in Chittagong. All the branches are involved in providing service to its clients in various ways. which are always taking care to give proper and adequate service to the clients. There are 17 branches in Dhaka. Fig.5: BRAC Bank branches in Bangladesh map Different Departments of BRAC Bank Ltd. Different departments of BRAC Bank are follows:      Corporate Banking Retail Baking Trade Finance SME (Small & Medium Enterprise) Division GIS (General Infrastructure Service) 16 . 5 branches in Sylhet. 3 branches in Jessore and Narshingdi and also 2 or 1 branches in every remote districts of the country to serve its customers the very best. Branch Network: There are 36 branches of BRAC Bank limited all over the country.Workforce: At present there are 2400 employees working for the company.

and Credit Administration etc. Head Office. BRAC Bank’s Corporate Banking team exists to provide both banking services and a financial partnership with local large and medium corporate. After sanctioning of the facility.  Product/Service objectives: The Corporate Banking Group would try to serve the financial market of the country with the following objectives. trading houses and joint ventures. Any credit facility is processed at the Corporate Banking Division.           Credit Division CSD (CONSUMER Service Delivery) Remittance FAD (Financial Administration Department) Treasury CID (Channel Infrastructure Department) IT (Information Technology) HRD (Human Resource Department) Risk Management LA (Loan Administration) Marketing & Product Development CORPORATE BANKING: The Corporate Banking Division provides full range of commercial banking products and services. Treasury. 17 . the Managing Director and finally the Board. Strict adherence to internal control guidelines and other legal and statutory compliance are followed. As the financial partner of choice for the corporate sector  Corporate Banking Structure: The Corporate Banking Division has a centralized structure through on-line banking system. The Credit approval process involves separate Credit Division. Many Departments such as Foreign Trade. the limit is put online and the CONSUMER can enjoy the facility from any of the BRAC Bank branches. play the support role for a comprehensive range of service to the corporate Banking Division.

So. • To provide and deliver services in a cost-effective manner. Retail banking offers every facility except Corporate Transaction.• • • To develop and sustain mutually beneficial CONSUMER relationships Maintaining a diverse and quality asset base and pursue a sustainable To pursue a management style that contributes to the well-being and based on high quality service and innovative products.4: Branches of BRAC Bank Branches of Dhaka:  Sonagazi  Narayangonj  Rampura  Mohammadpur Branches of Chittagong:  Beani Bazar  Zinda Bazar. 18 . which sells A/C of all branches. most of their functions are concentrated on retail banking. The braches are as follows: Table 1. BRAC Bank Limited is not exception of them.  Biswanath  Moulovibazar  Nabiganj            Gulshan Nawabpur Moghbazar Keranigonj Motijheel Dhanmondi Banani Ganakbari Sat Masjid. It has 36 Branches all over Bangladesh. growth strategy. BRAC Bank has planned to open more Branches Within this year all over the country. development of a fully responsible and accountable workforce under a high corporate standard and business ethics. RETAIL BANKING: Most of the Bank in our country are operating locally basis. There are more than 410 unit offices under SME division to support retail banking. Uttara Mirpur  Agrabad  Momen Road  Halishahor Branches of Sylhet: Other Branches  Comilla  Rajshahi  Jessore  Sylhet There is One Sales Center in Badda.

They provide loan. They pass necessary voucher/ register Entry. and Insurance Cover Note. Bill Of Lading or Airway Bill. which are to be paid in installment. This department also monitors the recovery of the loan and in case of inconsistency they take necessary action to recovery the loan. Send Export documents for Collection to Foreign Bank (bill of exchange. LC Proposal sent through SWIFT after proper authentication. Received L/C LIMIT from Corporate. Vat Registration Certificated. L/C Liability Create. NOC Certificate Issue. import Registration Certificate. Certificate: Of Origin. entry to L/C ledger & register book. Receives remittance credit proceeds to party A/C after realized necessary charges.  Product Features of SME: There are 4 products of SME: • • • Aroggo Rin Apurbo Rin Pathshala Rin 19 . Margin & Income realized From Importer’s Account. Trade Finance Check EXP certificate. GSP Certificate) with Bank Forwarding & document endorsement. Collect necessary documents from Exporter & Credit export proceeds if documents found in order. SME (Small & Medium Enterprise) DIVISION: This department of BRAC Bank Limited works widely over the country. Form & Performa Invoice check importer’s Signature on L/C AF & IMP form.TRADE FINANCE: Trade finance originally facilitates “International Business” They handle L/C (Letter of Credit) and do necessary activities related to international trade. Check validity & authentication of trade license. There are more than 300 unit offices of SME division all over the country sell different type of loan to different small and medium enterprise. TIN Certificate. Signature Verification of Import on L/C App. C&F certificate Issue. Intimate to Exporter after Receiving Remittance. available balance of Importer’s A/C. Invoice Packing List.

GIS Manager. Follow procedures for continuation of business and crisis management. Logistics Manager. First contact person to receive and record complaints including all types of requisitions and forward those to concern GIS units. Handle all security related issues.• Supplier Finance GIS (General Infrastructure Services):  Present infrastructure: • • • • • Senior Manager. Evaluation and Setting the target of procurement Procedural formalities in terms of approval for procurement Vendor management & negotiation Cost effectiveness Quality control Timely supply Supply chain management. Procurement Manager. Operations Manager.  Logistic: • • Arrange facilities and services for the key bank events.  Operation: • • • • • Handle bog and resolve all GIS related queries in 24-hour basis in the form help desk concept. Maintain Petty cash to rent up sudden logistic needs. Premises and Maintenance  Procurement: • • • • • • • Need Assessment. Manage and control dispatch. 20 .

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Manage vehicle fleet of the bank. Negotiate contracts for provision of outsourced services. Official Trail Arrangements.

 Premises and Maintenance:
• • • • Ensure comfortable and secure working environment. Asset management. Insurance coverage of all bank assets. Manage all related issue of Maintenance

CREDIT DEPARTMENT:
 Basic Definition: A Contractual agreement in which borrower receives something of value now agrees to repay the lender at some later date, Loan-an arrangement in which a lender give or property to a borrower, and the borrower agrees to ruler the property or repay the money, usually along with interest, at some future point(s) in time. As Financial intermediaries, Lending is one of the main functions of a Bank.

 Functions:
At present, Credit Division performs following activities: • Credit Approval/Process: 1. Retail Credit 2. Corporate Credit 3. SME (From 15 to 30 lac) • Collection & Monitoring Activity 1. Central Collection Unit (CCU).

 Objectives:
• • • Managing credit exposure Managing credit risk Compliance with the issue of Bangladesh Bank & BRAC Bank Ltd.

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Support all businesses of the Bank Collection of Overdue loans Recovery of Bad debts.  Products:

Credit Division supports the businesses products of following Divisions:    Retail Corporate SME

Category of Products on the basis of security:   Secured Facility Partly Secured/ Unsecured Facility

Secured Facility: Which is baked by 100% Cash Covered/ other security      Secured Loan Secured Overdraft Premium Term Deposit (PTD) Car Loan Home Loan

Basic Elements for Judging a Borrower: 5 C’s of Credit      Character Capacity Capital Conditions Collateral

Source of Borrower Study:

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         

Loan application Financial statement Study of Account Market reputation Bangladesh Bank Different Banks Personal Interview Personal Visit Net-Worth Position Other Source: Registration Office BRTA Press report

Credit Principals for Lending Decisions:  Assess the Consumer’s character for integrity and willingness Only lend to the Consumer who belongs to a fixed Income Only lend to the staff of widely known and highly reputed Only lend to the staff of such companies which have Assess carefully the Integrity and loan repayment capacity of Plan for the possibility of default Use common sense and past experience in conjunction with to repay  group or a stable business income.  companies having an unquestionable business track record.  professional career advancement platform for its people.  the guarantor.  

thorough evaluation and credit analysis. Do not base decisions solely on Customer’s reputation, accepted practice, other lender’s risk assessment or the recommendations of other officers.  Behave ethicality in all credit activities.

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managing and communicating Be diligent in ensuring that credit exposures and activities credit risk  comply with the requirement set out in this Product Program. Be Proactive in identifying. 24 .

Bonds on a monthly basis. Bonds/Coupons. Mailing welcome letter. Ensure cheque leaves stock register are properly maintained. Ensure Blank ATM Cards are balanced as per inventory register. Opening of Insta Cash Account. 25 .CONSUMER SERVICE DELIVERY DEPARTMENT: It is the processing Center for BRAC Bank. ATM Cards are delivered to the respective branches at the specified timeline. Ensure cheque Books are printed and checked as specified in the requisition request. Ensure Cheque Books. All the back office activities take place in this department. Printing and mailing of account statement month/quarterly/half yearly/yearly. Maintain sufficient stock of Govt. Bonds. Mailing FDR renewal. Dormant account activation. Change of Address in software system. Changing made of operation of company account. Statement of commission earning of Govt. Ensure ATM Card requisition requests are attended. Reactivation of Dormant/Closed Account. Account opening data entry in system. Mailing of cheque books to the respective branch. Welcome Account Opening. Maintain sufficient of statement letter sheet/welcome letter/letter half paper/ATM card holder/ATM Welcome letter/Terms and condition/Window envelope/ATM Bank Card/Cartridge. It performs the following activities: • • • • • • • • • • • • • • • • • • • • • • Ensure cheque requisition requests are attended. Timely reporting of reimbursement/Claiming statement of Govt. Ensure ATM Cards Are checked as specified and delivered to the respective locations.

 Premium Banking will safeguard the Bank’s Retail and SME portfolios.  Providing relationship-based banking services to this customer segment. which I will describe in the following segments. Retail Banking: “Retail Banking Unit” has positioned itself as a major channel of business.  Add these portfolios to increase in the Bank’s liability-base. and Loan Department etc. 1.6: Retail Banking 26 . CSD Department. focussed Retail Bankin g Alternative Delivery Channel Service Quality Premium Banking Non-Funded Business (NFB) Distributio n Credit Collection Unit (CCU) Business Intelligent Unit Sales Fig.Department of My Internship: I have worked in Premium Banking which is the part of the Retail Banking. Card Department. which holds a major stake of BRAC Bank’s Retail Banking portfolio. To work in the Premium Banking I also have to do the other related departments’ works which are Retail Banking. Department Goals:  Premium Banking highlights the importance of a small customer segment.

Premium Banking (PB) is the exclusive service of banking activities. “family members” are defined as: father.  ELIGIBILITY CRITERIA (REGULAR): Maintenance of a minimum balance of deposits or cumulative credit exposure.e. We recognize that you have worked hard to create the best possible future for yourself. mother. Total banking procedure has a special consideration on this department. Premium Banking is our way of personality acknowledging your relationship with BRAC Bank.to meet banking needs of individuals. initiates regular research works through “Service Quality Unit” and tailors superior service propositions for valued customers. Premier Banking services and literally taking Retail Banking products to doorsteps through Direct Sales force. the future of banking is truly exciting. a highly valued BRAC Bank customer. sister. Alternative Delivery Channels. funds under management). son.000. “Retail” concentrates mostly to ensure ‘service excellence’ across all points of services. 27 . The minimum FUM for an individual/joint accountholders is currently BDT 2. This unit takes foremost funding responsibility of the bank and is committed to offer multifarious services to entire customer base of the bank through Branches. brother.000. High-net-worth customers and other VIPs compromise the target market.  FAMILY PREMIUM BANKING: Up to 4 family members may combine their deposits or cumulative credit exposure (as above) to attain a specified minimum balance. Of many deliverables. Premium Banking has been established with one purpose: to provide the best possible banking solutions for you. and we are dedicated to enhancing that future. and with this innovative approach. This minimum balance is subject to change from time to time at the Bank’s discretion. or a combination of both (i. Premium Banking:  INTRODUCTION: Premium Banking is a personalized. For the purposes of this system of eligibility. is the basic eligibility criteria. prioritized and privileged service that aims to provide customized banking solutions to simplify a customer’s life.

which will not be offered to all customers. • Greater Cash Access Limits at ATM/POS: This facility is currently on hold due to system inadequacies.  FEE INCOME: Each Premium Banking customer (including each separate customer under Family Premium Banking) will be levied an annual Premium Banking service fee of BDT 5.900 (excluding VAT).000. Special Debit Cards and Chequebooks: These will help to identify the customer at branches and by the Bank’s clearing unit when making transfer cheque payments. on a case-by-case basis. Free Auxiliary Services (SMS/Internet/Phone Banking): Exclusive facilities may be added for to each. 28 . for a detailed list consult the relevant attachment. • Pre-approved VISA Gold Card: Please note that the customer may have to fulfill extra credit eligibility criteria in certain cases. ATM/POS cash access limits will be enhanced upon software upgrade. The minimum FUM for Family Premium Banking is currently BDT 3.daughter and spouse.000. This will help to safeguard and maintain relationships with key persons who may directly or indirectly affect the bank’s reputation in the industry. This minimum balance is subject to change from time to time at the Bank’s discretion. Preferential Rates and Charges: Most regular Retail Banking fees are waived. Head of Retail Banking retains the authority to approve applications for this service to any such persons. This fee is subject to change at any time at the Bank’s discretion and will be advised to customers accordingly.  BASIC FEATURES: • • • • Dedicated Relationship Manager: He/she will be the customer’s single point of contact for all banking requirements.  OTHER ELIGIBILITY CRITERIA: Premium Banking may also be offered to very important or socially influential persons in lieu of the minimum balance.

The only facilities that may be availed with this card are the privileged and discount arrangements at selected retailers.• Privileged Arrangements and Discounts: Tie-ups with various retail outlets will be made to provide this facility to customers. Medical Facilities:        Treatment facilitation at affiliate hospitals Bangladesh Bank documentation and liaison Ticket booking and purchase Visa arrangements and embassy fee payments Room and board arrangement at affiliate hotels Foreign currency and TC purchase and encashment Medical Loan   Student Facilities:   Campus Account Student File processing and maintenance 29 .  SERVICE DETAILS: • Home Delivery Service (non-cash items only):         • Chequebooks Debit/Credit Cards Debit/Credit PIN Accounts Statements Drafts & Pay Orders FD & DPS Certificates Traveler’s Cheques Any banking forms/letters and other non-cash services Honorary Premium Banking: Up to 2 family members may receive a special “Honorary” Premium Banking card which identifies the person’s link to a Premium Banking customer.

By providing regular banking items right to the customer’s residence or office. As such. home delivery of regular banking services is not being provided in a structured manner by any other bank in the country. While it is very basic concept.      Immediate tuition fee and student lodging payment Bangladesh Bank documentation and liaison Ticket booking and purchase Visa arrangements and embassy fee payments Foreign currency and TC purchase and encashment Study Loan  Travel Facilities:      Ticket booking and purchase Visa arrangements and embassy fee payments Room and board arrangement at affiliate hotels Foreign currency and TC purchase and encashment Travel Loan  NRB Facilities:      Pick-up from and drop-off to the airport Custodianship of valuables at selected branches Hotel booking Rental car arrangement Foreign currency and TC purchase and encashment The basic idea behind Premium Banking is in the provision of fast and easy service. This means that the customer can save time and effort simply by instructing his or her dedicated RM to make a delivery. 30 . this facility will highlight BRAC Bank’s unique approach to personalized banking and give Premium Banking an edge over similar services. the Home Delivery service reduces the customer’s reliance on the branch.

 DELIVERABLE ITEMS: The delivery items are listed in Table 1.5 below: 31 .

Table 1.5: Delivery items
    

Chequebooks Debit/Credit Cards Debit/Credit PIN Accounts Statements Bank Certificates

   

Demand Drafts & Pay Orders FD receipts & DPS certificates Traveller’s Cheques Any banking forms, other non-cash services

DISPATCH POINTS:
Table 1.6: Dispatch points
Customer will place a home From Head delivery request through RM.

The dispatch points of different delivery items are listed in the Table 1.6 below. Office Chequebooks  Debit/Credit Cards  Debit/Credit PIN  BA the RM will instruct Letters From Branch All other items

concerned Branch to issue/obtain the requested item(s). Separate Messengers will make

the card and PIN deliveries to ensure the customer’s

safety.

MESSENGER LOCATIONS: requested item(s), fill out and
sign the Confirmation.

Branch will issue/obtain the

Messengers will be distributed among the following locations, reporting to the RM at the concerned branch; Messengers based at the Head Office will report to Senior Manager, Premium Banking: Branch will hand over the
item(s) in a sealed envelope along with the Confirmation to the Messenger.
 

Table 1.7: Messenger Locations Gulshan Motijheel
 

Head Office (x2) Moghbazar

 

Banani Agrabad

Dhanmondi

Messenger will make the delivery to the Customer, obtain his/her signature, and  PROCESS: give him/her the “customer’s copy” of the Confirmation. RMs will make the appropriate

entry in the designated Home Delivery Request. This

form must be submitted to the concerned BM or CSM for action. Once the requested tem hasMessenger will return the been issued or obtained, it will be sealed in a Premium Banking envelope and handedConfirmationthe Messenger along with the Home Delivery Confirmation, along over to to the Branch for signature verification. with any application form that needs to be signed by the customer in order to have
e does obtained the item normally (e.g. DD/PO form, Document Issue form, etc.). not Signatur

match
Signat ure match es

Branch will notify RM of mismatch.

RM will call the Customer to confirm item(s) receipt.

Branch will retain the Confirmation.

RM will notify Branch of delivery confirmation.

32

Fig. 1.7: Process flow Messengers are also under instruction to make the delivery to the customer directly. RMs will inform the customer in advance to receive his or her package personally and sign the Home Delivery Confirmation and any other appropriate forms. A process flow is attached in Fig 1.7 for better understanding.

33

SPECIAL CONDITIONS:

Under no circumstances will RMs or Messengers deliver or receive cash or any bearer or cash cheques for safety reasons. Traveler’s Cheques up to USD 6,000 (or equivalent) may be home delivered. In such cases, RMs will make the delivery personally in an office vehicle to ensure security.  SCHEDULE OF CHARGES: Table 1.8: Schedule of Charges ACCOUNT Regular RELATED Account Maintenance BDT 600 (annual) Account Closing BDT 300 Chequebook Issue BDT 100 ATM/DEBIT CARD Service - Classic Card - Campus Card  Co–Branded Card Replacement - Classic Card - Campus Card  Co–Branded Card CASH TRANSACTIONS (INTERCITY) BDT 1 and above BDT 100,000 and above BDT 500,000 and above BDT 1,000,000 and above BDT 5,000,000 and above CASH TRANSACTIONS (WITHIN CITY) BDT 2,500,000 and above BDT 5,000,000 and above CERTIFICATE ISSUE Account Statement  For current year  Per previous year Balance Certificate Regular BDT 200 (annual) BDT 425 (annual) BDT 495 (annual) BDT 200 BDT 425 BDT 495 Regular BDT 100 BDT 200 BDT 300 BDT 1,000 BDT 2,000 Regular BDT 200 BDT 1,000 Regular BDT 100 BDT 200 – – – – Premium Banking – – – – – Premium Banking – – – – – – Premium Banking

Premium Banking – – – Premium Banking

34

BDT 500) 1.50% (min.BDT 150 / BDT 100  General (same/next day)  To specific party (same/next BDT 300 / BDT 200 day) Solvency Certificate BDT 300 CHEQUE RELATED Regular Stop Payment BDT 200  Account Payee cheque BDT 500  Cash cheque Stop Payment Cancellation BDT 200 Return (due to insufficient BDT 500 funds) Outstation Cheque Collection BDT 200 Cheque Purchase BDT 500 + postage  LCY 2.000) Premium Banking – BDT 100 – BDT 500 – BDT 500 – Premium Banking 0.00% (min. BDT 500) 0.000  Issue – above BDT 100.00% 1. BDT 500) BDT 200 BDT 500 BDT 200 BDT 300 BDT 200 – – – Premium Banking – – – – – BDT 500 + postage 2.000  Cancellation FCY DD  Issue  Cancellation FTT (SWIFT) Advice  Issue  Cancellation FCY / TC FCY Issue TC Issue TC Encashment – BBL  Accountholder  Non–Accountholder TC Encashment – other banks’  Accountholder  Non–Accountholder Passport Endorsement  Accountholder  Non–Accountholder Certificate of TC Encashment  Accountholder  Non–Accountholder Endorsement from FCY Account Regular BDT 100 BDT 200 BDT 300 BDT 1.000 BDT 1. BDT  FCY 1.000 BDT 1.50% (min.00% 0.00% (min. BDT 500) 0.00% (min.000) DD / PO / FTT LCY DD/PO  Issue – up to BDT 100.50% 0. BDT 1.000 BDT 1.25% (min.50% – BDT 500 BDT 500 BDT 500 – – – – – 35 .000 Regular 1.

Premium Banking Membership Fee is BDT 5.000 – instrument) BDT 100 (per instance) BDT 200 + postage BDT 1.000) Regular BDT 2.500 (annual) BDT 4.500 (annual) BDT 3.00% on o/s (max. BDT 15.LOAN RELATED Documentation Quotation Change Security Change Security Documentation Copy Loan Rescheduling LOCKER FACILITY Small Locker Medium Locker Large Locker MISCELLANEOUS Account to Account Fund Transfer BBL Statement Verification Certificate of Inward Remittance Duplicate Instrument Issue Processing Standing Instruction Mail Forwarding  To customer’s address abroad  To specified organization STUDENT SERVICE Document Verification File Maintenance Regular BDT 100 BDT 500 BDT 500 BDT 200 1.250 (annual) BDT (annual) BDT (annual) Premium Banking – – 1.500 (annual) Regular BDT 200 BDT 200 BDT 150 remittance) BDT 500 Premium Banking – – – – 1. BDT 15.900 (annual).250 (per (per – – – – – Premium Banking BDT 1. 36 .000 + postage Regular BDT 2.000 BDT 3.750 2.00% on o/s (max.500 (annual) .000) Premium Banking BDT 1.

1.9: Major Small Enterprise Finance Consumer Finance Syndication ATM Services Cash Management Service Payments & Clearing Safe Deposit Locker Service functions Collection its business (Product and Services) Employee Benefits Description ofService 37 . 1.Gulshan PB Lounge HOPB SRM ARM CSO development ] Dhanmondi PB Lounge SRM ARM RM CSO Uttara PB Lounge Banani Motijheel Lounge RM ARM ARM posted Moghbazar Lounge SRM RM ARM Major Chittagong Lounge Functions RM RM ARM Motijheel ] RM ARM Sylhet RM ARM ARM Foreign Exchange General Banking Credit and Clearing and Fig.8: Organogram Premium Banking Advance Remittance Major Functions of the Department: Major of Deposit functionsCashRetail Banking include general banking. loan and advance and Remittance Billing Account Account Transaction clearing and Department and foreign exchange.Department functions are given in the remittance The major Department Department Department workflow below: Swift for Foreign Trade Remittance Service Asset Management Treasury Service Retail Banking Corporate Banking Trade Finance Project Finance Fig.

Overall supervision of the branch in its day today activities. Head Office. 1. Now they will be discussed thoroughly by highlighting all the functions of BRAC Bank.Retail Banking offers the following products and services to ATM Services its valued customers as Swift for Foreign Trade the business revolves around the demands and needs of the clients. Gulshan branch.  Job Description Before proceeding to the functional activities of the overall Premium Banking.Monitor and coordinate in loan processing. Remittance Service Asset Management Treasury Service Collection Service Retail Banking Corporate Banking Trade Finance Project Finance Small Enterprise Finance Consumer Finance Syndication Cash Management Service Payments & Clearing Safe Deposit Locker Service Employee Benefits Fig. The major functions of the bank have been given before. This is because they are mainly involved in all the major functions. Head Office. . Gulshan Branch consists of 24 employees who directly or indirectly serve their customers in various ways. 38 . the functions of the Senior Relationship Manager and Relationship Manager are given below.10: Products and Services Functions of PB in BRAC Bank. Senior Relationship Manager (SRM): . Gulshan Branch: As given in the organ gram.

Ensure superior service quality and out serve commitments. 39 .Ensure home delivery service request are met.Documentation and disbursement of necessary Circulars from the Head Office to the branch staffs. .Interview and answer all sorts of customer queries.Manage our Premium Banking Team. . .Holding meeting with the staffs and motivate them to improve the overall business performance.  Term Deposit:  FDR: High interest fixed deposit.Co-ordinate with the Head Office to sanction different types of advances and advance related work. .Pro-actively analysing and formulating patterns of customer’s changing needs of financial services and recommending/suggesting ways to tackle those. .Help in remedial asset management Associate Relationship Manager (ARM): .Handling customer complaints in a positive manner and converting complaints into service improvement opportunities.Special concentration to recover bad advances by meeting the defaulters and constantly communicate with bank lawyer for taking necessary legal action against the defaulter client.Keep good relationship and support your RM for all matter in tour PB team. Relationship Manager (RM): . .Monitoring and follow-up with the employees within the branch. . .  General Banking: General banking is the heart of banking activities.Provide friendly and responsive customer service by using skills for excellent customer service. The detailed description of general banking is given below.Create an environment where value center will operate effectively as a team demonstrating the values of the Bank. Total banking procedure start with this department. . . .. .

It can be withdrawn able by using check. The demand deposits accounts are 1. ABIRAM Account 5.  ACCEPTING DEPOSITS: Accepting deposits is one of the most important functions of commercial banks. which are not.  FFD: Freedom Fixed Deposit. Fixed Deposit Receipt Account (FDR) 4. The deposits are accepted by BRAC Bank may be classified in to  Demand Deposits  Time Deposits Demand deposits: Demand deposits are those. withdrawn able on demand but con be drawn after a stipulated time. take instant interest on your deposit. 3. Money Multiplier: Double/Triple/Quadruple your deposit in a fixed amount of time. Banks pay higher interest rate against such type of deposit account. which are withdrawn able on demand by using check. It is a good means of accumulating the savings from the large section of the 40 . Current Account Time Deposits: Time deposits are such deposits.  IFFD: You do not need to wait for maturity date to get interest. There are many time deposit accounts. Saving Account 2. Deposit Premium Scheme (DPS) 7. Short Term Deposit (STD) 6. Premium Term Deposit  SAVINGS ACCOUNT: Savings bank account is a demand deposit. highest interest rate ever offered by BRAC Bank Ltd.

No forfeiture rules or hidden cuts. proof of address. Bank’s prescribed account Opening form to be signed by applicant in front of BM/RM/CSM. Two copy of recent passport size photograph attested by the introducer. There is no requirement for notices to be given before making a withdrawal. Interest is given for each day for whatever balance is maintained in the account that day. There is no restriction on the number of withdrawals. Such as: He/she is eligible to apply for the personal loan packages and can also open other additional accounts and fixed deposit with the bank. ID card.50% per annum.  CURRENT ACCOUNTS: Current account is an account where the account holder-within the funds can make numerous transactions without any restriction. Opening of Savings Account: Any person who is of sound mind including a minor can open a savings account. • • • • • • • • • • Interest is paid on a daily balance method. No interest is paid on these deposits. Any of the following identification documents like current valid passport. commissioner certificate etc. with minimum balance restriction. 41 . 4. 2. Specimen Signature Card to be signed by the applicant in front of BM/RM/CSM.000. In this case Certifier should attest applicant’s photograph along with signature. The depositor can deposit sum of amount whenever he wants. The requirement to open an account is as follows: 1. Benefits received from saving account. Interest paid at 6% per annum on days when the balance is under TK 20. Currently BRAC Bank is ‘Paying interest of 5. 3. Bank pays interest on saving account. He/she will receive discounts on remittance commissions.population with lower income. He/she will receive preferential treatment at the time of processing of their loan applications. The account holders will receive some other benefits.

3. There is no restriction of the amount or size if a withdrawal. Any of the following Identification documents: Table 1. it can be opened by any individuals aged 18 years and above. Opening of Current Account: Current account is opened by Individual.Current account is mainly suitable for business transaction. Two copy of recent passport size photograph attested by the introducer. 4. Public or Private Limited Companies for different purposes. Bank’s prescribed account Opening form to e signed by applicant in front of BM/RM/CSM. Specimen Signature Card to be signed by the applicant in front of BM/RM/CSM. The procedure for individual and joint Account: The following documents duly completed shall be obtained from the Consumer at the time of opening of Current Deposit Account for Individual and Joint Account: 1.9: Identification Documents Name of Identification document Current valid passport Valid driving License Voter ID Card Armed forces ID cared A Bangladesh employer ID card bearing the Photograph and Signature of the Issuing Authority Passport office Bangladesh Road Transport Authority Election Commissioner Employer or Their Delegate Employer or their delegate 42 . No requirements for notice to be given before making a withdrawal. However. No forfeiture rules or hidden cuts. Benefits received from Current Account: • • • • There is no restriction of the number of withdrawals. 2. There is also some difference as to open an account by different concerns. Sole Proprietorship. Partnership Firm. Joint. Club or Society.

The Fixed Deposit account is opened for a fixed period. as the deposit is not withdrawn able or demanded. In this case certifier should attest applicants Government authority. 3 months. Opening of Fixed deposit Receipt (FDR) Account: Before opening a Fixed Deposit receipt (FDR) Account a CONSUMER must have an account with the bank. Different rates or interest are allowed for different period and also depend on amount. organs such as Union council chairman. the following woks have to be done:  Specimen Signature Card to be signed by the applicant in front of BM/RM/CSM. Pourashava Chairman or Ward commissioner. 1 year. Then the CONSUMER has to fill up an application form that contains the following: Amount in figures Beneficiary’s name and address Period & date of issue Rate of Interest Date of maturity Instructions if any       After the submission of the Bank’s prescribed account opening form dully filled up. FIXED DEPOSIT RECEIPT ACCOUNT (FDR): Fixed deposits are time deposit or time liabilities. it may be 1 month. Trade License with photograph can be Local accepted for individual’s Chairman. Banks pays higher rates of interest. Up Photograph along with signature. 6 months. 43 .applicant A certificate forms any local government Up chairman or Ward Commissioner. 1. ward commissioner etc. 2 years and 3 years.

ABIRAM ACCOUNT: BRCK Bank Abiram Account is a special type of Fixed Deposit Scheme. The Abiram account is opened for a fixed period.50%. The period may be one year. as the deposit is not withdrawn able on demand.75% to 8. Different rates of interest are allowed for different period and it also depends on amount. An amount of cash is deposited n Bank for a fixed period specified in advanced in this deposits. Banks pays higher rates of interest. Interest rate is 8% to 7. interest will be issued. which offers the flexibility and comfort of having a guaranteed monthly return on your investment.   Two Passport size photograph of the account holder. 44       . interest will be issued at the prevailing Sevings Account rate. Maturity Date and Withdrawals: The following points are considered regarding maturity period and withdrawals or Fixed Deposit Receipt (FDR) account: The Fixed Deposit Receipt will be matured after the specified period. and maximum of three years.5% depending on amount and time. Interest is calculated par annum basis. two year. If the FDR is withdrawn before maturity period. Then the CONSUMER has to fill up an application form that contains the following: The Abiram Account will be matured after the specified period.  Interest is calculated on a monthly basis. Bank will issue FDR receipt. At the maturity period on the account holder should come himself and put his specimen signature on the back of Fixed deposit 2. Interest rate is 7. Depositing the amount in his account. Opening of Abiram account: Before opening an Abiram Account a CONSUMER must have an account with the bank. If the Abiram account is withdrawn before the maturity period.

usually customer gives an instruction to the bank that their current account will be transferred to the STD account. The interest offered for STD is less than that of savings account.At the maturity period the account holder should come himself and put his specimen signature of the back of Abiram account receipt. 3. Frequent withdrawal is discouraged and requires no prior notice. Various big companies. DEPOSIT PREMIUM SCHEME (DPS): BRAC Bank introduces the Deposit Premium scheme (DPS). An amount is deposited in a bank for a fixed period of time. Maturity period may be 4/7/11 or 14 years. Consumer’s Current Account Consumer’s STD Account 4. a truly special savings plan that allows saving on a monthly basis and getting a handsome amount at maturity. Bank pays higher interest rate and there are a range of options for both instalment size and maturity. the interest is calculated on daily basis. usually Consumers saving account will be debited whenever its deposited amount crosses a certain limit and this amount will be transferred to the DPS account. An amount is deposited in a bank for a fixed period of time. So Bank follows this instruction by giving following entries. In BRAC Bank. So bank gives following entry: Consumer’s Savings Account Debit Debit Credit 45 . Abiram account offers loan facilities up to 95% of deposit. Bank pays higher interest rate and there are a range of options for both instalment size and maturity. The rate of interest for STD account is currently 5% per annum and the investment should be minimum one Lac and above. Government Departments etc keep money in STD account. organizations. SHORT TERM DEPOSIT (STD) ACCOUNT: In Short Term Deposit account. Then the banker verifies the signature and retains the Abiram Account receipt and will give him the amount in cash or as required. In BRAC Bank.

46 .Consumer’s DPS Account Credit Before opening a Deposit Premium Schemes (DPS) Account a Consumer must have” a Savings account with bank. Then the banker verifies the signature and will give him the amount in cash or as required. Maturity Date and Withdrawal of Deposit Premium Scheme (DPS): The following points are considered regarding maturity period and withdrawal of Deposit Premium Scheme (DPS) Account:   The DPS Account will be matured after the specified period. and interest will be issued.5% to 9. Than the CONSUMER has to fill up an application form that contains the following:        Amount in figures Beneficiary’s name and address Period Rate of Interest Date of Issue Date of maturity Instructions if any. At the maturity period the account holder should come himself and put his specimen signature of the back of DPS account receipt.75% depending on amount and time. Deposit Premium Scheme (DPS) offers loan facilities up to 90% of deposit.   Interest rate is 8. Deposit Premium Scheme can be en-cash before the maturity period.

Premium Term Deposit provides a guaranteed return. Interest rate is 17% per annum. Opening of Premium Term Deposit: Before opening a Premium Term Deposit a CONSUMER has to fill up an application form that contains the following:       Amount in figures Beneficiary’s name and address Period Rate of Interest Date of Issue Date of Maturity.10: Current interest rates Types of Account Savings Bank Account Fixed Deposit Receipt (EQID) 1 Moths up to 3 months 3 Moths up to 6 months 6 Moths up to 1 months 1 year up to 2 years 2 years up to 3 years Short Term Deposit (STD) 8. Unlike conventional Deposits.50% 5% To Interest Rate 5. PREMIUM TERM DEPOSIT: BRAC Bank Premium Term Deposit is a 5 year term Fixed Deposit.5. Bank pays higher interest rate.75% ACCOUNT OPENING PROCESS BY CSD: 47 .50% 7. Maturity Date and Withdrawal of Premium Term Deposit: The following points are considered regarding maturity period and withdrawal of Premium Term Deposit:   The Premium Term Deposit will be matured after 5 years Fixed Term. Interest Rates of Deposit Account: Table 1.

Manager Operation sends the file to Consumers Service Officer. so the customer should be chosen appropriately SHANCHAY PATRA: BRAC Bank sells two types of Shanchay Patra on behalf of the Government. Consumers Service Officer files the received copy. Branch Manager approves the file and return to Operation manager. If in order. Keeps one in Signature cabinet sends another with photocopy of his account opening form to Consumer Service Delivery (CSD). CSO enters all account opening form and specimen signature cards in a log sheet in triplicate daily basis and hands over to Operation Manger Keeping the log and if satisfied send the account opening from to Consumer Service Delivery to inputs data in Millennium Banking System (MBS) Client Database and Scanning of the Signature Cards. The Sales Statement of Shanchay Patra must be sent to Bangladesh bank Within 72 hours of sale. CSD receives the account opening form and signature cards and sign of in the duplicate copy of the log sheet and sends back to branch. BRAC Bank geat commission of the total sales. Then he enters the account details in numerical control register. otherwise the bank has to pay penalty to Bangladesh bank. a great deal or personal judgment is required by the banker to verify the Consumer. it has been observed that all the procedure regarding opening an account. Consumer Service Officer scrutinize account opening form and establish account. Extra care should be taken in case of Public and Private limited companies regarding the documents. 48 . signs off and submits to Branch Manager for approval.Consumer requests opening of account and after completing the form. Consumer Service Officer Submits forms with all documents to Operation Manager for Review. The banker customer relationship is the ultimate key to success. CSO then do the photocopy of the form and segregates Specimen Signature Card. Observation: However. Operation Manager rechecks all documents.

Giving Tele Banking services. At the end the Shanchay Patra Issuance of or encashment details must be logged in the Form T and forward to Consumer Service Delivery (CSD). receiver will put initials.Table 1.Making vouchers regarding above transactions. . . .Transferring and closing different types of accounts. fixed deposit and any other deposit instructed by the head office. and client’s signature must be verified by the receiver. And for Respective account will be credited with in 24 working hours. The job description of this department is given below: . Shanchay Patra will be issued respective branch with in 36 working hours.Opening and operating PSS account. saving bank deposit. .Handling operation of different types of accounts. In both the cases receive stamp will be used.  Deposit Account Department: In BRAC bank Gulshan Branch.Opening different types of account such as current deposit. Desk –1 is involved in account opening and closing tasks. . This section also needs the help of computer officer in order to issue cheques and verify account holder signature. For issuance. CSD will then transaction. One staff officer is given this responsibility. . After receiving the instruction and instrument. And for Encashment of Shanchay Patra Consumer Service Officer receive Coupons along with encasement request form and a photocopy of Registration slip. .  Cash Transaction Department: 49 .Serve its customers the best by helping with their queries and problems.Giving account statement to the clients.11: Shanchay patra interest rates Type of Shanchay Patra 3 years Shanchay Patra 5 years Shanchay Patra Interest Rates 10% 10.Responsible for issuing cheque books.5% Shanchay Patra Issuance and Encashment by CSD: Branch Consumer Service Officer receives the application form for issuance of Shanchay Patra and a letter of Debit authority along with declaration form. .

The activities or responsibilities of the cash transaction department can be shown with the help of a workflow.  Clearing and Remittance Department: 50 . Transaction Cash Clearing Transfer Voucher Recording in the register Posting in the ledger Supplementary sheet preparation Balancing Tally with Summery Preparation Cash-cum day book General ledger posting Affairs front page Abstract Subsidiary accounts posting Fig 1. electricity and gas bill.11: Accounting workflow in branch Cash transaction department is Affairs back page colleting bill from the customers also involved in regarding mobile.

.The respective House pages are totaled and the total of each is noted on a Slip and a grand total is taken out.The House pages along with the duplicate schedules are filed.The main objective of clearing and remittance is to provide an extra facility to the customers than cash receipt and cash payment.The amount of each schedule received is entered in the House pages of the respective branches.The amount of instruments delivered. 51 .A copy of each schedule is detached. .The instruments are sent to the branches concerned for clearance along with the IBDA with the total amount of the instruments. .The instruments with schedule are arranged branch wise. . .The instruments are sent to the respective branches with Slip showing total amount and number of instruments. . Inward Clearing: . . .The instruments drawn on other banks are received duly entered in the Pay-in-Slip or voucher.The grand total is agreed with the total of the House Book. received and difference is written in a slip provided in the Clearing House and the Slip is returned.Particulars of the instruments are compared with the schedule and the Slip and the schedules are detached (Receipt of instruments in the Branches).The instruments drawn on BRAC Bank are received from other Banks in the Clearing House by the representing branch of the Bank. • Clearing and Transfer Delivery: 1. . This department can be divided into two parts as per the type of responsibilities. .The amount and number of instruments received are entered in the House Book from the main schedules of respective banks. . . 2.The instruments are sent to the respective departments and the schedules are filed. Outward Clearing: .

In case the payee's name on the specially crossed instrument differs slightly from that of the depositor. . . two copies of which are attached with the relative instruments.The Register is balanced. . . the vouchers are separated from the instruments and released after lodgement to the respective departments against acknowledgement in the Register.The instruments with the schedules are sent to the branch representing to the Clearing House.The instruments are arranged bank-branch-wise. .. .The instruments are checked and compared with the particulars noted in the Pay-in-Slip and its counter folio.The House Page is prepared in duplicate.The particulars of the instrument and the voucher are entered in the Outgoing Clearing Register.The instrument and Pay-in-Slip are detached from the counter folio which is handed over to the customer. guarantee is obtained from the second payee on the reverse of the instruments. 52 .The BRAC General A/C Clearing House representing branch is debited with the amount of the instruments and IBDA is sent to that branch and the party's account is credited. . .Serial number is given on each voucher. .Proper stamp(s) is/ are affixed on the instruments and on Pay-in-Slip and the counter folio . . the instrument may be accepted but only from the customer's well known to the Bank and after obtaining an Indemnity that is attached to the Pay-in-Slip. . .The Sub-Main-Schedules are prepared in triplicate.The instrument is suitably endorsed/ discharged.The grand total of the schedules is taken and agreed with that of the Register. . .The instrument along with the Pay-in-Slip is sent to the In-charge for checking and signature.In case an Order instrument is being deposited in second payee's account.

The instruments are delivered to the respective Banks. .The branches are entered in the Outward Clearing Register. especially businessmen can transfer funds from one place to 53 .The instrument is received in the manner similar to that explained in foregoing paras (Receipt of instruments by the Branch representing to the Clearing House). Inward Transfer Delivery: For payment of Bills presented to a particular branch of the Bank through another branch of the Bank. . and total is balanced with that of the Register..The Main Schedule of each Bank is prepared and total amount of the respective sub-main-schedules are entered thereon. . Outward Transfer Delivery: Outward transfer delivery is used for collecting Bills by a particular branch of the Bank.The instruments with schedules received from the branches are sent to the Clearing House (Presentation in the Clearing House). The only exception is that there are no clearing house formalities.The instruments with schedules are received from the branches (Lodgement by the branch representing to Clearing House). The concerned branches of the Bank directly deal with Inter-branch clearing. For this service.  Local Remittance: Sending money from one place to another place for the customer is another important service of banks. The procedures are the same as those applicable to Outward Clearing. the procedures are the same as those applicable to Inward Clearing. 3. people. drawn on another branch of the Bank. .The only exception is that there are no clearing house formalities. .The instruments with schedules are rearranged bank-branch-wise. .The House Page is prepared in duplicate. And this service is an important part of country's payment system. 4. . The concerned branches of the Bank directly deal with Inter-branch clearing.

there are two officers who monitor the activities.Inspection of land site for HBL proposal through personal investigation in connection with assessment of value.Inspection land for assessment of valuation of property to be proposed against .Preparing loan limit sanction letter and obtain confirmation from the borrowers. loan application. .Processing of application of House Building Loan for Head Office sanction. BRAC bank helps people transfer their money from one district to another in the quickest possible time at the lowest service charge. Telegraphic Transfer 4.another place very quickly.Processing of application requesting for confirmation of lien and verification of signature in case of advances against BSB/ICB Unit certificates/Wage Earner Devt. Pay Order 3. There are five kinds of techniques for remitting money from one place to another place. both are them are known as TT in short. The functions of this department are described below: . Telephone Transfer 5. 50lacs. . . . These are: 1. Bond. Mail Transfer . 54 . Gulshan Branch.Preparing limit sanction advice for computer programming and arrange completion of documentation formalities. .Placing the loan proposal to the Branch Manager/ Head office for disposal.Obtaining credit information Bureau Report in case of advance for more than TK. Demand Draft 2.Time consuming and not frequently used Telegraphic and Telephone transfer are almost the same.Processing of loan application . . Project site inspection in case of advance against work order.  Loan and Advances: In the credit and advance department of BRAC Bank.Obtaining confidential report from other banks regarding new intending borrowers. .

preparation of application to legal advisor for vetting of property documents.Purchasing accepted inland bills with approval of the Branch Manager.Negotiation of Export document.Scripting draft plaint and processing the case to BLA for filing of Money Suit/Title Suit after receiving approval for the same from head office.Submission of statement of SOD/CC/TOD/HBL/Loan to head office on monthly basis and other statements in quarterly and half-yearly basis..Checking balances of advance ledger. . complete the documentation including registered mortgage/Power of Attorney through sub-register office. . . .Review of limit before expiry including issuance of letter of different borrower for renewal/adjustment of limit. and preparation of draft for creation of Power of Attorney/Equitable Mortgage/Loan Mortgage.Preparing draft according to legal advisor’s prescribed format for serving legal notice to the defaulting borrowers. .After getting draft from legal advisor about vetting of property documents. . .Having received approval from the branch/Head Office for sanction of SOD/cash credit (Hypo)/House Building Loan limit. .Taking appropriate steps for renewal of insurance policy in case of cash credit (Hypothecation) advances. .Inspection of stock against cash credit (Hypo.Preparing application for making lien against Work Order with the branch and obtain confirmation of issuance of work order and letter of confirmation through personal visit to the office of work order awarding authority. .Sending the balance confirmation certificate to the borrowers after every quarter end.) account. 55 .Appearing before the Artha Rin Adalat on the date of hearing of Money Suit/Title Suit. . . . .Processing of application to Head Office for sanction of Staff Provident Fund loan account.Preparing proposal for sanction of IBP limit to Head Office beyond the branch discretionary power and thereafter completion of documentation and legal formalities thereof if sanctioned. .

50% p.a. There are 2 (Two) types of Home Loan. Architect etc). The loan is give on the basis of 50% of proved monthly income. 50.  Travel Loan: Travel Loan is a loan facility offered by the Retail Banking Division to facilitate travel related requirement for going abroad (for any purpose) of the Bangladeshi people.. A person can borrow up to Tk. There is an option for early settlement of outstanding loan but settlement charge will be applicable as per following manner: Within 1st year = 5% of outstanding amount + VAT Within 2nd year = 4% of outstanding amount + VAT Within 3rd year = 3% of outstanding amount + VAT Within 4th year = 2% of outstanding amount + VAT Within 5th year or more than 5th year = 1% of outstanding amount + VAT The applicable interest rate is 14% p. 3 Lac. which is 1% lesser than Personal Loan. The processing fee is 1. The Loan Processing Fees/Charges for the facility is 2% of loan 56 . (variable rate). travel loan. It is a clean or unsecured loan in the sense that there is no cash security taken against the loan. Self-employed professional (Doctor. This loan is offered to the persons who have stable monthly income. auto loan and study loan which I will describe briefly Home Loan: Home Loan is loan facility for the middle class to upper class people to purchase / renovate their Apartments / dwelling houses for their residential purpose through mortgage or other securitization policy as per law. Loan are given to salaried (including ECO).000 which will be borrowed. The limit of the loan is minimum BDT 500K to maximum 7500K (may vary subject to loan type) and the tenor would be maximum 20 years (may vary subject to customer segment and loan type). The interest rate is 17.a.It also offers some loan like home loan. Businessman & Landlord. The other one is “Home Credit (HC)” for renovation of Apartment / House. Engineer. The first one is “Home Loan (HL)” for purchasing Apartment / House.5% of loan amount and includes VAT payable before disbursement. The minimum amount is Tk. Equal Monthly Instalment (EMI) realized through Standing Instruction (SI).

then the Equal Monthly Instalment (EMI) at 17. The interest rate of Secured Study Loan is 14.50% p. The tenor of the loan is 12 to 36 months. The loan will be given to 2 types of person like service holder and business man. minimum Tk.000 of Travel Loan.21  Foreign Exchange Department: Foreign Exchange risk is defined as the potential change in profit/loss due to change in market prices.28 EMI for 36 Months 3. The limit of the Secured Study Loan is 100% of the face value of the acceptable Securities.000  Auto Loan: Auto loan is the loan facility for the middle class or upper class people to purchase a car for their necessary purpose. Acceptable securities for Secured Study Loan are. Within the Bank. The interest rate is 18% and the processing fees 1%. Today’s financial institutions engage in activities starting from imports. If I get TK 100. The tenor of Secured Study Loan is 12 to 60 Months. will beLoan Amount 100.5% interest rate p.590. Treasury department is vested with the responsibility to measure and minimize with bank’s assets and liabilities.968.1000 and also includes VAT. The processing fee 0. The proposed limit will be offered after adjusting existing Auto Loan facilityFUM Below BDT 5 Million Above BDT 5 Million  Study Loan: Study Loan is a loan facility offered by the Retail Banking Division to facilitate the purpose of Higher Education of the Bangladeshi Students.a. 57 . exports and remittances involving basic foreign exchange and money market to complex structured products.    Term Deposits at BRAC Bank or other banks Wage Earner Development Bonds ICB Unit Certificates LIMIT 1500K 2000K EMI for 12 Months 9.144.a.50% of loan amount and includes Vat. The employee will be get benefited from this loan.22 EMI for 24 Months 4.amount.

Foreign Remittance Department: BRAC Bank. businessmen and Government are called export. The export trade of the country is regulated by the Imports and Exports (control) Act.Export Department: The goods and services sold by Bangladesh to foreign households. . which an exporter has to fulfil before and after shipment of goods. Gulshan Branch is an authorized dealer of foreign exchange. import of merchandise essentially involves two things: bringing of goods physically into the country and remittance of foreign exchange towards the cost of the merchandise and services connected with its dispatch to the importer. . There are a number of formalities.. The department’s dealing in foreign exchange involves buying and selling of foreign exchange converting inward remittances received from abroad and outward remittances sent abroad. 1950. Hence. The exports from Bangladesh are subject to export trade control exercised by the Ministry Of Commerce through Chief Controller of Imports and Exports (CCI & E).Import Department: Import is the flow of goods and services purchased by economic agents located in one country from economic agents located in another. Foreign Exchange Export Import Foreign LC Cash Back to Back Inwar d Outwa rd 58 .

The 59 . ATM card division is producing around 700 cards in different segment each day. There are different steps to complete the process of card production. Through this service the clients are enjoying modern technology in withdrawing their money. BRAC Bank is offering this service to most of its client as early as possible.12: Organizing Structure of Foreign Exchange Department  ATM CARD PRODUCTION DEPARTMENT: This is new department that is introduced in the service portfolio of BRAC Bank Limited. Function of ATM Card Division:               Production of ATM Cards Maintaining the stock of ATM Cards Keeping record of produced cards Reproducing Lost/ Stolen ATM Cards Distribution of ATM Cards Maintaining All database related to card production & distribution Charging against issued cards Resending returned cards Maintaining the vault registrar Coordination with IT in issuing Pin Customer service through handling inquiry of the clients Updating the request of address chance into access system Maintaining reject till internal audit Sorting out discrepant request branch wise and send back. 1. A Brief Overview of the Banking Industry: According to the Bangladesh Bank Annual Report 2006/07 there are total 48 banks in Bangladesh with 6412 branches all over the country in order to serve the people. There is a card embossing machine that can produce around 1200 card per day. Limited (Singapore) is providing blank ATM card to BRAC Bank. It represents the development of banking sector in our country. A well-trained work force is giving their level best effort to serve efficiently. It started its journey form 15th April 2005. Secura Pvt. Among the local bank BRAC Bank is the only one bank that is producing ATM card in their premises.Fig.

Premiere Bank.: From the annual report I calculate the liquidity and profitability ratios of 2005-2007 of BRAC Bank Ltd. There are four different categories of banks. They are: Nationalized Commercial Banks Denationalized Financial Institutions Private Commercial Banks Foreign Commercial Banks Among the above categories BRAC Bank Ltd. Financial Overview of BRAC Bank Ltd. Prime Bank. I also interpret the ratios as a graphical manner and briefly describe the graphs. PCB sector has the highest number of competitors that is 30 in numbers and it is growing at a fast pace. EXIM Bank. Mercantile Bank. Dhaka Bank. Eastern Bank. Major competitors: • Some of the major competitors that are eating up the pie of the banking industry include Bank Asia. One Bank. The competition within this sector is increasing to grab the majority customer base and BRAC Bank is struggling to maintain a suitable position in the industry and also to improve their services. falls under private commercial bank. JAMUNA Bank. 60 . Trust Bank etc. In the graph analysis part I show that in which sector BBL should work for their future growth. BRAC Bank Ltd. Some of the banks are using aggressive strategy and spreading their services in the remote areas at a very short span of time.competition in this industry is increasing day by day. is one of the very lucky bankers who are enjoying the special position for International image in the industry as an asset. which will be shown in the following page.

95% 430283242/16876009139 =2.19% 1945492526/35404777 =54. 2007.61% 666515907/16876009139 =3.50% 1050407027/35740286 =29.95% =35.16% 1234456708/46382595418 =2.68% 192680101/340360101 =56.33% 618335637/3072028674 =20.21% 618335637/46382595418 =1.65% 2077425522/30011815073 3546246530/46382595418 =6.12: Ratio Analysis Liquidity and Profitability Ratios Current Ratio 4127311766/14882402057 =27.54 23/38.92% =7.11% 334261127/2117193037 =15.55% 8662586106/24334895856 11172919504/39608407773 =35.95 25/54.54 = 59.60% 334261127/30011815073 =1.66% 334261127/705361127 =47.44% 580318012/15057550 =38.95 = 45.Ratio Analysis: Table 1.79% 421576241/30011815073 =1.55% 580318012/16876009139 =3.61% 340360101/1173317659 =29.39 = 81.39% 705361127/2077425522 =28.50% 618335637/1264335637 =48.18% =16% The above ratios have been calculated on the basis of Financial Statements of BRAC Bank Limited for the year 2005.49% =3.91% 1264335637/3546246530 2005 2006 2007 1050407027/30011815073 1945492526/46382595418 =33.65% 30011815073/2117193037 46382595418/3072028674 =14. 2006 and.01% 1173317659/16876009139 =6.95% 16876009139/782931910 =21.13% 539221202/46382595418 =1. 61 .39 24/29.66% =4.40% 745864435/30011815073 =2.14% 192680101/782931910 =24.73% Return on Asset Return on Equity Net Interest Margin Net Non-interest Margin Net Bank Operating Margin Earning Per Share Dividend Payout Ratio Tax Management Efficiency Expense Control Efficiency Asset Management Efficiency Funds Management Efficiency 192680101/16876009139 =1.

Current Ratio 40 Values (%) 30 20 10 0 2005 2006 Year 2007 27. we see that over the past three years current ratio of BBL is decreasing then increasing and after that it also decreasing which signifies that. Return on Asset: Return on assets determines the amount of net income produce on a firm’s assets by relating net income to total assets. 35. 2006 and.Interpretation of Financial Statements: Current Ratio: Current Ratio indicates the extent to which current liabilities are covered by those assets expected to be converted to cash in the near future.73%.6 28. 62 . current assets of BBL is getting weaker compare to their current liabilities.60% and. 1.21 Fig. 28. With the current ratio 27.21% for the year of 2005. 2007 – BBL could liquidate current asset of book value and still pay off current creditors in full.73 35.13: BBL’s Current Ratio of 2005-2007 Here.

35 Values (%) 1. ROE 30 25 Values (%) 20 15 10 5 0 2005 2006 Year 2007 Fig. it indicates how capably the management of the bank has been converting the institution’s asset in to net earning.3 1.ROA 1. ROA in 2005 was 1. 1. In 2006 it decreased to 1.05 1 2005 2006 Year 2007 ROA Fig.14%. 1. both of which cause BBL’s net income to be relatively high.2 1.1 1. It is clearly shown that BBL cans efficiently converting its assets in to earning.11% and then again in 2007 increased to 1.15: BBL’s Return on Equity of 2005-2007 63 . It approximates the net benefit that the share holders have received from investing their capital in the bank. Return on Equity: ROE means the rate of return flowing to the banks’ shareholders.25 1.14: BBL’s Return on Asset of 2005-2007 It is primarily an indicator of managerial efficiency.33%.15 1. These high return result from the banks’ high basic earning power plus low expenses.

Though the ROE in following year is not steady. In BBL the noninterest margin of 2005. BBL can attract the shareholders as the potential ROE indicates a large multiplier which shows high returns for its stakeholders and. the percentages are quite potential. 64 . 2006 and.61%. therefore the net interest margin is high. In 2006 it decreased to 15. Net Non-interest Margin: The non-interest margin in contrast.49%. and.55%.13%.79% but in 2007 it again increased to 20.66% respectively.95%. 1. 2. 2. measures the amount of non-interest revenues stemming from deposit service charges and other service fees the bank has been able to collect relative to the amount of non-interest costs incurred. Net Interest Margin: It measures how large a spread between interest revenue and interest cost management has been avail to achieve by close control over the bank’s earning assets and the pursuit of the cheapest source of funding. at the same time the interest expense on deposits and on other deposits is also low.In 2005 we have seen that ROE was 24. Though the interest income from loans and security investments of BBL is low.16: BBL’s Net Interest Margin of 2005-2007 The net interest margin of BBL for the following three years is 3.16%. 2007 is 2. a good equity that absorb losses on the bank assets.40% and 1. Net Interest Margin 4 3 Value s (%) 2 1 0 2005 2006 Ye ar 2007 Net Interest Margin Fig. 1.

44%.6 2.5 2.65 Values (%) 2.19%. 1. Therefore it is slightly varying from year to year.18: BBL’s Net Bank Operating Margin of 2005-2007 From the graph we have seen that in 2005 net bank operating margin was 3.17: BBL’s Net Non-Interest Margin of 2005-2007 Net Bank Operating Margin: Net Bank Operating Margin 5 4 Values (%) 3 2 1 0 2005 2006 Year 2007 Fig.55 2.Net non-Intarest Margin 2. 65 . In 2006 it rises to 3.50% and in 2007 it again rises to 4.45 2. 1.7 2.4 2005 2006 Year 2007 Net nonIntarest Margin Fig.

they had to invest a lot. 66 .Earnings per Share: Earning Per Share 60 50 40 Values 30 20 10 0 2005 2006 Year 2007 Earning Per Share Fig. Therefore whatever their profit comes.19: BBL’s Earning Per Share of 2005-2007 BBL’s stockholders are most concerned about their earnings per share of stock held. and 45. Therefore management needs to begin work immediately on expanding the bank’s revenues from assets and services sold. 2007 is 59. Dividend Payout Ratio: Dividend Payout ratio of 2005.50% respectively. they invest in it to get more profit.66%. It is seen their ratio is decreasing. Though it decreased in 2006 but again start increasing in 2007. 2006 and. As BBL is expanding their branches and opened many ATM booths. Tax Management Efficiency: This is basically the measurement of tax management policy that is how well the company can manage their tax burden. while moving toward a less-expensive mix of deposits and non-deposit sources of funds. 1.68%. 81.

39% and. 1. and 2007 is 56.21: BBL’s Expense Control Efficiency of 2005-2007 67 . In 2006. expense control efficiency was 29. Expense Control Efficiency: In 2005. 1.20: BBL’s Tax Management Efficiency of 2005-2007 Tax management efficiency of 2005. 48.65% which is a good sign for the BBL. Therefore BBL needs to work on their tax management policy. 2006.91% respectively.01%.Tax Management Efficiency 58 56 54 52 Values (%) 50 48 46 44 42 2005 2006 Year 2007 Tax Management Efficiency Fig. 47.95% and again in 2007 it increases to 35. it increases to 33. Expense Control Efficiency 37 35 Values (%) 33 31 29 27 25 2005 2006 Year 2007 Expense Control Efficiency Fig. Though their tax management efficiency in 2005 is high but it fell in 2006 which is not good for BBL.61%.

23: BBL’s Funds Management Efficiency From the above graph we see that in 2005 the funds management efficiency was 21. 1. But in 2007 it again slightly increased to 16%.65 Asset Management Efficiency Fig.92 2006 Years 2007 7.8 6.95 6.4 2005 6.2 7 6. 68 .55%. So the BBL should work on it.95% but in 2006 it decreased to 6. 1.Asset Management Efficiency: Asset Management Efficiency 7.55 16 Funds Management Efficiency 14. It also means that the BBL’s condition is good.18% which indicates the huge reduction. Funds Management Efficiency: Funds Management Efficiency 25 20 15 Values (%) 10 5 0 21.18 2005 2006 Year 2007 Fig.8 7. In 2006 it decreased 14.4 7.92% and in 2007 it again increased to 7.65% which indicates the huge increment in the asset management efficiency of the company.6 6.6 Values (%) 7.22: BBL’s Asset Management Efficiency of 2005-2007 In 2005 the asset management efficiency increased to 6.

This is very common analysis to determine the company’s capabilities of doing effective business.   Huge business area The bank has earned customer loyalty as well as organizational loyalty. This help to know the possible advantages and disadvantages of the firm that it has compare to compare to others. SMS Banking.SWOT Analysis of BRAC Bank Limited: SWOT analysis means analysing the strengths. SWIT facilities.STRENGTHS W-WEAKNESS O-OPPORTUNITIES T-THREATS Here is the SWOT analysis of BRAC Bank: Opportunity Threats  S. weakness. The bank has also control in maintain quality services to its clients.     The banking service is easily accessible and feasible Efficient and skilled workforce Higher profitability The bank launched several deposit schemes.STRENGTHS: As a private commercial bank BRAC BANK enjoys the following strengths     Wide range of service line Online Banking Services Excellent working environment The bank is providing modern services like ATM. on line banking. opportunities and threats of the Organization to know the present condition. The SWOT analyses are briefly given in the below: Strength Weakness S. which have been appreciated by the Consumers resulting growth of deposit of the bank. 69 .

Lack of motivation among the workers.        W-WEAKNESS:        Lack of proper motivation. 70 . As a result people of all status can easily become a client of the bank. They feel reliable to deal with this bank and usually do not switch. They have excellent management system to integrate all the branches with the head office. So. This is because of the reliability they provide to their customers. their enduring good will in the field works as a vital strength. BRAC Bank Ltd has a good number of corporate customers. They have qualified and experienced human resources who are highly committed to their customers. medium and big enterprises. BRAC Bank Ltd. has a long-term reputation in the banking industry as it is one of the promising players in the industry. Heavy dependency on Head Office in decision making sometimes slower the work process. It has sophisticated automated banking system in most of its branches which foster the overall banking activity. Its one of the important strength is its big portion of share as it provides security to the customers. They have clients from all small. The bank also provides all their services at a very low rate. training and job rotation Limited workforce compare to competitors Lack of clearly define marketing objective Limited number of branches Lack of promotional objectives and strategies Lack of implementing more equipped IT technology Fund is getting costlier and getting access to the fund is also becoming more difficult    Lack of experienced employees in junior level management.

 Despite stiff competition among banks operating in Bangladesh.   Political uncertainties in the countries affect the business. BRAC BANK has achieved satisfactory progress in all areas of its operation. Increasing number of SME has enhanced the opportunity for bigger corporate client base.  More policies of Bangladesh bank and lowering the bank rate by Bangladesh bank.  T-THREATS:  The event of September -11 last eras in the USA and the events that followed have aggravated the global economic situation. High dependency on ‘word of mouth’ strategy.     The banking sector of Bangladesh is growing very fast. BRAC BANK reduces the lending rate.  In developing country like Bangladesh banking service would be the only sources of financing. The bank will go for immediate automation of all branches through computer network. Lack of extrinsic and intrinsic reward & incentives for the employees from management sometimes result to job burn out. Other unexplored district where branches can be set up.  They can diversify their portfolio by introducing new sector like introducing ATM machines. Opening of the branches of newly opened private banks and foreign banks the competition will be intensified. The bank can also start micro-credit for individuals and small business. both foreign and local.  High awareness among all level of people to deposit money in the banks. 71 .   O-OPPORTUNITIES:   To increasing skilled manpower bank can earn more profit.

With potentials of new business opportunities. Recently.    Foreign banks are all prepared to snatch the country's limited market. Gulshan Branch always response immediately to the changing need. The Head Office informs every changing rules and regulations properly to all the branches. The size of the market and the present state of economic activity did not provide adequate scope for business for a large number of banks with outdated operating system. Frequent changes in rules and regulations from Bangladesh Bank. There are some legal issues given below that have been included in the rules and regulations of Bangladesh Bank: .Change in the guidelines in prevention of money laundering . Low switching cost of the customers. Remedies Adopted by BRAC Bank Ltd. Instead of doing so new banks was permitted further squeezing the business opportunities. government steps at this stage should be to strengthen local banks by undertaking needed reforms.Emphasize on ethical issues in order to reduce corruption and abuse of power . High customer awareness of pricing and service strategy due to aggressive marketing by its competitors. the bank assesses the possibility of risk 72 . The branches then rectify the problems. Problems Facing by the Company: BRAC Bank Ltd.Emphasize on prevention of terrorism by focusing more on customer details. As a result they need to redesign their account open format so that they can know every detail of the prospective client. They need to change and redesign their work process according to the instruction of Bangladesh Bank. they have faced serious problems regarding anti money laundering. which is difficult to adopt. The recent strategy they are following in case of dealing with a new customer is “Know Your Customer of KYC”. is facing several problems due to the current prevention of corruption by the Government.: BRAC Bank Ltd. The competitor may come with innovative ideas. Under this method.Change in Policy guidelines on internal control and compliance .

Overall Assessment of BRAC Bank. Head Office. Here is to mention that the profitability of the branch is highly dependent on income from general accounts. Thus they are indirectly helping the government in averting corruption. Gulshan Branch: On the whole. BRAC Bank is doing well as an experienced bank in the industry. Thus. they can prevent money laundering as they will not allow any customer with illegal or doubtful account. Future Direction: BRAC Bank. They can procure lower cash deposit in order to invest more. they are thoroughly going through the previous accounts to find whether there is any loophole or not.regarding opening the account of a particular customer. 73 . They are trying to improve their business performance by organizing general meeting among the branch staffs to detect the existing problems and resolve them as soon as possible. The Gulshan branch of this bank has been able to meet the target of 2008 which indicates their passion for achieving goals. Moreover. Gulshan branch can extend their potentiality by increasing the credit portfolio. increase nonfunded business so as to maximize dependency on interest earning from BRAC Bank general account and to improve overall business performance of the branch to maximize profit.

Chapter 2 Project Part 74 .

amongst the clients who are Premium Banking Client. the format provided by the University authority has been strictly followed. about the product and research findings along with some recommendations for the bank. In order to achieve this objective the proposed study will try to find out how client perceive BRAC Bank’s Premium Banking Service. The proposed study will mainly intend to investigate the popularity of Premium Banking Service amongst Premium Clients. satisfaction level of the service etc.  level of operation of a bank as find out the differences between theory and practice. In this part too. It has identified the major activities of banking as well as department 75 . To have some practical experience that will be helpful for my BBA To facilitate the student apply their theoretical knowledge in practical program. To find out the internal and external lacking in the daily operation that would help BRAC Bank Limited for more progress.Introduction to the Research: The project part of this report includes a primary research about the customer’s satisfaction level regarding BRAC Bank’s Premium Banking services. benefits for the client. To gain different functions of banks. perception about quality service. hypothesis. This part of report includes objective of the research. The study shall try to examine about various aspects like perception about the service. To have an exposure on the banking environment of Bangladesh. Objectives of the Study: The basic objectives of this study are as follows:     To fulfil the partial requirement of BBA program. methodology.   To present an overview of BRAC Bank Ltd. Premium Banking is one of BRAC Bank’s exclusive new services designed with most valued customer’s needs in mind. The Scope of the Study: The report covers the activities of different department of the Head Office of BRAC Bank Limited.

Finally this study will provide a better understanding of the premium client in general so that the product can be positioned more effectively. Hypothesis: The Hypothesis regarding the research is “The satisfaction level of BRAC Bank’s Premium Banking Service among the premium clients segment is effective”. Face to face conversation with the bank officers studying of different Annual report of BRAC Bank Ltd. At present there are numbers of national and international banks coming up with new services. It only focuses the overall mechanism of banking. Significance of the Study: BRAC bank is serving its customers for more than five years. Hopefully.   76 . The study has tried to explore the potential opportunities and threats regarding the Premium Banking Service provided by BRAC Bank. The basic data both primary and secondary used in the preparation of this report are obtained form:   Personal observation of different tasks. Hence.wise functions. they can be the part of this exclusive service for a long time. files and books. It is also hoped that the results from this study will help management in taking strategic decisions regarding its service features. Methodology of the Study: I went to Head Office BRAC Bank Limited. Periodicals published by Bangladesh Bank. the competition has increased to a great extent. The Premium Banking Service has been chosen because they are the potential and the prospective clients for the banks. for my internee. the results of this perception survey will assist the company (BRAC Bank) in identifying the strengths and weaknesses of its service and also to identify potential opportunities and threats. If they are aware and satisfied about it now. in depth analysis of every department & sub sections are not covered here. The services provided by the banks needs to be satisfactory to its users.

Sources of Data: Both the primary as well as the secondary form of data is used to prepare the report. It was given to client or employees who are main stakeholders of Premium Banking Service in order to identify their satisfaction level. The executives & officers of BRAC Bank were quite friendly & cooperative to provide lots of information to prepare this report. The details of these sources are highlighted below. conversation & discussion of different employees and Clients. Sampling Method: Convenient sampling method was adopted whereby most of the respondents available at Gulshan Branch. The data generated is primary in nature.  Primary Sources: Primary data for this report had been collected through the interview. This set of questionnaire has been used to conduct an investigative research. • Target Respondents: For the sake of simplicity and the reason of easy availability the study concentrated on existing PB clients only. The null hypothesis that the satisfaction about Premium Banking services among the clients is positive will be tested against the alternate that is they are dissatisfied. Data has been also collected through survey questionnaires containing both structured and unstructured questions. • Sample Size: The selection of the sample was random and the sample size is 30. The dependent variable Y (CSI) is measured using 8 dimensions of customer’s satisfactions such as customers 77 .  Secondary Sources: Secondary information was collected from:   Annual report of BRAC Bank Ltd. Books on general banking. One set of questionnaires has been prepared. On the job observation of the officers has helped a lot to know information of banking.

the extent to which costumer read the instructions provided by PB and frequency of their visit to PB. The independent variable X1 (CII) is measured using 3 critical factors that strongly indicates customers degree of being informed of the services provided by PB such as the time line of customers banking experience with PB. Graphs and Analysis: Gender Female Male 53 47 Fig. CSI and CII is calculated in a way that the upper limit of them is 500 and lower limit is 0. Finally this factor has been assigned with a weight according to their relative importance about customer’s degree of being informed and thereby the CII is calculated.1: Gender Distribution of the Premium Banking Customers Table 2.rating on employees knowledge. situation adaptability. 2. these 8 dimensions of customer satisfaction have been assigned with weights according to their relative importance and thereby the CSI is calculated. Both the index. Another independent variable X2 is a Dummy variable where the variable takes the value 1 for employed customer and it takes the value 0 for unemployed customers.1: Gender Distribution of the Premium Banking Customers 78 . oral communication skills. patience. sincere interest and employee neatness. responds toward customers. affability.

This can be show that the younger customers lean to bank more than the elder customers.7 43. It means that there has been a growing amount of women literacy.7 100.2: Age Distribution of the Customers Valid 19-28 29-38 39-48 49-58 >59 Total Frequency 8 13 5 2 2 30 Percent 26.0 Valid Percent 46.3 16.7 6.7 53.0 Cumulative Percent 46.3 16. 79 . So they need banking facilities. 2.Valid Female Male Total Frequency 14 16 30 Percent 46. This can be explained through various spheres.0 Valid Percent 26.0 From the table we see that most of the customers were fell age group of 29 to 38 years.7 43.3 100.7 70.3 100. the rest being inconsequential.7 100.3 100.7 6.0 86.7 6.0 Cumulative Percent 26.7 100.7 6.3% were males.7 93.7 53. Next were from 19 to 28 years old.0 I surveyed 30 customers in which 46. 5 0 4 0 t n0 e3 c r e P0 2 1 0 0 1-8 92 2 -3 9 8 3 -4 9 8 4 -5 9 8 >9 5 C s m r's A u to e ge Fig.2: Age Distribution of the Customers Table 2.7% were females and 53. More women are now originating in the work field with their male co-workers.

4: Distribution of Profession of the Customers Valid Employee Businessman Frequency 6 20 Percent 20.3: Frequency Distribution of the Marital Status Valid Married Single Total Frequency 16 14 30 Percent 53. 80 70 60 50 40 30 20 10 0 Employee Businessman Housewife Student Profession Fig.3 100.0 86.0 66.7 100.7 80 .Marital Status Married Single 47 53 Fig.0 Valid Percent 53.7 100. 2.3: Frequency Distribution of the Marital Status Table 2.7 Valid Percent 20.4: Distribution of Profession of the Customers Table 2.3 46.0 This will be shown that there isn’t much variation between the numbers of married and unmarried customers.3 46. 2. It means that in the recent time people get married in a later age.7 Cumulative Percent 20.0 66.0 Cumulative Percent 53.

3 100.0 93.5: Educational Qualification of the Customers Frequency Valid Masters Degree Bachelor Degree Total 14 16 30 Percent 46.7 6.0 Valid Percent 46. When I surveyed the customers I did not get any illiterate customers.5: Educational Qualification of the Customers Table 2.Housewife Student Total 2 2 30 6. 81 .7 6.0 6.3 100. So from this statistics we learn that people who are engaged in daily transactions banking is more important for them.0 From the above table we see that most of the customers are bachelor degree. But there is not a much difference between the bachelor degree and masters degree.7 100.7 53. 2.7 100.0 Cumulative Percent 46. 54 52 50 48 46 44 42 Masters Degree Bachelor Degree Educational Qualification Fig.7 53.7 100.3 100.0 As we can see that most of the customers plunge under businessmen and employees category compared to housewife and student.

40 35

t 30 n e c25 r e P 20
15 10 Banani Gulshan Uttara Dhanmondi Others

Residence

Fig. 2.6: Distribution of the Residence of the Customers

82

Table 2.6: Distribution of the Residence of the Customers
Valid Banani Dhanmondi Gulshan Others Uttara Total Frequency 8 4 11 3 4 30 Percent 26.7 13.3 36.7 10.0 13.3 100.0 Valid Percent 26.7 13.3 36.7 10.0 13.3 100.0 Cumulative Percent 26.7 40.0 76.7 86.7 100.0

Most of the customers stay in Gulshan and Banani. This can be explained as such that the survey was conducted in the Gulshan Branch of BRAC Bank Premium Banking. Since, most of the customers of that branch come from that area; it is evident that this will be the result.

1< 1-6 6 - 12 >12

Fig. 2.7: Number of months with BRAC Bank PB Table 2.7: Distribution of the Number of months the Customers are with Premium Banking
Valid 1< 1-6 6-12 >12 Total Frequency 4 14 8 4 30 Percent 13.3 46.7 26.7 13.3 100.0 Valid Percent 13.3 46.7 26.7 13.3 100.0 Cumulative Percent 13.3 60.0 86.7 100.0

It is seen that majority of the customers have been banking with BBL’s Premium Banking for 1-6 months and the next is 6-12 months. It is same amount of customers less than one month and greater than 12 month.

83

Ys e N o

4 0 6 0

Fig. 2.8: If the customer maintains accounts with other banks Table 2.8: Frequency distribution of the customer if they maintain accounts with other banks
Valid Yes No Total Frequency 18 12 30 Percent 60.0 40.0 100.0 Valid Percent 60.0 40.0 100.0 Cumulative Percent 60.0 100.0

This is another important component for the base of customer knowledge. It can be assumed that if customers have accounts with other banks, they are likely to be well informed about the current services available in the market at their due prices with benefits.

5 0 4 0 t n0 3 e c r e0 2 P 1 0 0 SB C
HSBC BA RC

50.0% 22.22% 11.11% DB BL O es th r

Fig. 2.9: Customers Maintain Accounts With Which Other Banks

84

0 96.9 100. Then comes ‘Not Sure’.0 Valid Percent 13. social reputation.0 22.7 3.0 Customers who maintain accounts with other banks that are SCB.0 100.0 13.3 16. This can result due to the exposed political hubbub in the country.2 88.3 56.1 100.3 23.0 6.7 80.2 16. etc.10: What the Customers Think About Reading Instructions Valid Very Important Moderately Important Not Sure Moderately Less Important I dont need to Total Frequency 4 13 7 5 1 30 Percent 13.0 Cumulative Percent 13.Table 2.10: What the Customers Think About Reading Instructions Table 2. This shows an increasing movement of the Bangladeshi investors and borrowers to invest and save in multinational banks.7 3. HSBC and DBBL.3 100.3 10. Very Im portant M rately ode Im portant No Sure t 13 23 17 3 M rately ode Less Im portant I dont ne ed to 43 Fig.9: Customer Maintain Accounts with Which Other Banks Valid SCB HSBC DBBL Others Total Missing Total System Frequency 9 4 3 2 18 12 30 Percent 30.3 43.0 72.0 Valid Percent 50.3 100.3 43.7 100. But a strong portion of the 85 .7 60.3 16.0 Cumulative Percent 50.0 40.3 23.0 Majority of the customers interviewed agree that it is moderately important to read instructions provided by the bank.7 11. 2.

7 46.0 16.0 Valid Percent 26. 2. During my internship term.3 100.7 36. If they read the instructions then they will save their time.11: How Well Customers Read Instructions Provided by Premium Banking Table 2. 86 .7 20.customers also claims that they feel it’s moderately less important to read the instructions and they can almost do without reading them! Very well For the sake of reading At times Very often 27 37 20 17 Fig.7 100.7 20.0 Cumulative Percent 26. From this I understand about the nature of the customers. I saw that customers face lots of problem because they don’t read the instructions which will be provide by the bank.11: How Well Customers Read Instructions Provided by Premium Banking Valid Very well For the sake of reading At times Very often Total Frequency 8 6 5 11 30 Percent 26.7 63. This will be very bad habit for the customers and for this reason they suffered and also give pain to the bank.7 36.0 Mass of the customers doesn’t read instructions that often.0 16.7 100.

60 50 t 40 n e c r 30 e P 20 10 0 Yes 40.0 Many companies pay their salary through banks.0 Valid Percent 40.0 60. s/he can just change the address and maintain the same account with BRAC Bank.0% No The account with PB if Employee Account or not Fig.0 100. When the employee changes the job.12: Frequencies of Employee Accounts Amongst the Customers Valid Yes No Total Frequency 12 18 30 Percent 40.0 60. From my survey I found that only 40% customers maintained employee account.0 Cumulative Percent 40. 2.0% 60.0 100.12: Percentage of Employee Accounts Amongst The Customers Table 2.0 100. BRAC Bank also has the option and names the accounts as employee accounts. 87 .

2.7 13.3 100.60 50 t 40 n e c r e 30 P 20 10 0 Quarterly Once a year Twice a year Once a month Frequency of visits to PB Fig. 88 .3 30.7 100.3 6.13: Frequency of Visits to BRAC Bank Premium Banking Table 2.3 56.0 I asked the customers how frequently they visited the bank.7 100.7 13. Remaining is visit in a quarterly or once a year or twice a year which I found through survey.13: Frequency of Visits to BRAC Bank Premium Banking Valid Quarterly Once a year Twice year Once month Total a a Frequency 7 2 4 17 30 Percent 23. This indicates that they come into contact with the services frequently.0 Valid Percent 23.3 56. Most of them regularly visit the bank in a monthly basis.3 6.0 43.0 Cumulative Percent 23.

3 63. Although there are a major number of customers saying that they are not sure and think about the service that is neither good nor bad.14: Frequency Distribution of Customer Ratings on PB Services Valid Excellent Good Neither nor bad Total good Frequency 4 19 7 30 Percent 13.3 23.0 Cumulative Percent 13.3 63. 89 .14: Customer Rating Services of BRAC Bank Premium Banking Table 2.3 100.3 23. Most of the customers agreed that they think that the service of PB is good.0 This question directly asks how the customers would rate PB services.3 100.0 Valid Percent 13.E elent xc G ood N either go nor od bad 23 13 63 Fig. 2.3 76.7 100.

15: Type of Accounts Customers Maintained in BRAC Bank Premium Banking Frequency Valid Local Currency Current Account Local Currency Savings Account Company Account Foreign Currency Current Account Total 5 Percent 16.0 Local currency savings account is the most popular account in BRAC Bank. Next.7 Valid Percent 16.7 Cumulative Percent 16.0 76.3 20.3 20.15: Type of Accounts Customer Maintains in BRAC Bank Premium Banking Table 2. nearly one third of the Local currency savings account is the current account (both local and foreign currency ones).0 100.0 60.7 80. 2.0 100.7 18 1 6 30 60. 90 .0 100.20 3 60 17 Local Currency Current Account Local Currency Savings Account Company Account Foreign Currency Current Account Fig.0 3.0 3. Company account also accounts in this table but it grabs only a small part of the pie.

000 on an average. It can be seen that around 30% of the customers surveyed keeps from BDT 5.0 70.Average amount of BDT maintained in PB of BBL 35 30 25 20 15 10 5 0 10000-50000 50001-500000 500001-5000000 >5000001 10 30 30 30 Fig.0 30.0 100.0 30.0 100.0 30. Only 10 percent maintains from BDT 10.0 100.0 40.0 Cumulative Percent 10.000.0 Valid Percent 10.000.0 This question is very crucial as well in determining which customers are more satisfied. Yes No 3 97 Fig.16: Amount Maintained in the Accounts Table 2.0 30.16: Amount Maintained in the Accounts Frequency Valid 1000050000 50001500000 5000015000000 >5000001 Total 3 9 9 9 30 Percent 10.17: ATM Card Used by the Customers 91 . 2.000 to 50. 2.0 30.0 30.

0 Valid Percent 96.3 16.3 13. This can tell a little crumb about the modern development towards Bangladeshi hasty Life.3 3.0 Almost 97% of the customers maintain ATM Card with BRAC Bank Premium Banking. 7 0 6 0 0 t5 n0 4 e c r3 e0 P 2 0 1 0 0 66.7 3.7 20.67% 13.17: ATM Card Used by the Customers Valid Yes No Total Frequency 29 1 30 Percent 96.33% 3.3 66.3 100.33% Y T Q M W Frequency of ATM Card used Fig.3 100.0 Only querying about the ATM card if used or not really does not give much of a meaning.0 33.3 66.3 100.3 3.7 100. The society towards contemporary breathing leads to use ATM Cards and move away from traditional banking.7 3.Table 2. 2.7 100.0 Valid Percent 3. From this question I can be seen that almost all the customers use 92 .3 13.18: How Frequent the Card is Used Valid Yearly Quarterly Twice a year Once a month Every week Total Frequency 1 4 1 4 20 30 Percent 3.3 13.0 Cumulative Percent 3.3 13.18: How Frequent the Card is Used Table 2. It is up to the frequency of the card used that will help open the window and give meaning to it.0 Cumulative Percent 96.7 100.

19: Extent to which there is a Problem with ATM Location Table 2. There can be some errors.3 20.3% saying that they don’t face that much problem but 26.0 Valid Percent 27. This can also be explained numerously. 2.7 100.19: Extent to Which There is a Problem with ATM Location Frequency Valid Healthy amount Bearable Not that much Not at all! Total Missing Total System 8 2 13 6 29 1 30 Percent 26.3 100. This can reflect that a huge portion of the services consumed by the customers fall under ATM.9 44.0 Greater part answers that they do not face problems regarding the location of ATMs.0 Cumulative Percent 27.7 6.8 20.the card on a weekly basis.. Customers who come to Gulshan branch may be content with the location since they travel in Gulshan and Banani area for their work. and there are ATMs in both Gulshan and Banani.6 6.0 96.3 100. On the other hand. 93 .7 3. Extent of ATM Troubles 50 45 40 35 30 25 20 15 10 5 0 Healthy amount Bearable Not that much Not at all! Fig. since I collected data from only Gulshan Branch and disregarded customers from other branches/locations.5 79.7 43. 43. those who work in Motijheel can face harsh problems due to lack of a single ATM in Motijheel area.6 34.7% says that they have a healthy amount problem.

7 3. Compared to the response of the previous question.9 89.20: Extent to Which There is Problem with Number of ATMs Valid Very Much Healthy amount Bearable Not that much Not at all! Total Missing Total System Frequency 2 2 7 15 3 29 1 30 Percent 6. Only 7% says that the location problem is bearable.8 37.10 7 7 24 52 V ery M uch H ealthy am ount B eara bl e N th ot at m uch N a ot t all! Fig.0 Valid Percent 6.7 6.7 100. 2.3 100.0 Cumulative Percent 6.0 10. 10% says “Not at all” and remaining says that they have a very much and healthy amount problem.7 23. customers are more satisfied with the number of ATMs.9 6.7 10.3 100.3 50.0 This question is different from the previous one in the dimension that the problem faced in this one is regarding the number of ATMs. 94 . This can also be addressed with the similar error faced before (customer base is limited in the sense that only Gulshan Branch customers were surveyed).0 96. From the survey we get that 50% don’t face not that much problem.1 51.9 24.9 13.20: Extent to which there is Problem with Number of ATMs Table 2.

0 100. In my internship period I also faced this problems.3 100.3 66.21: How Annoyed Customers are With ATM Service Table 2.7 3. I also faced almost regular cases regarding ATM failures.0 Cumulative Percent 10.0 Valid Percent 10.3 17. 2.3 6.7 13.2 31. dissatisfaction in the machines poses a big threat to the image of the bank. The customers have to wait at least for a day to get back their cards.8 69.9 13.7 96. But significant amount also answers that they are annoyed with the machine.0 100.21: How Annoyed Customers are With ATM Service Valid Very Much Healthy amount Bearable Not that much Total Missing Total System Frequency 3 2 4 20 29 1 30 Percent 10.0 Since ATM covers a big portion of the services offered by Premium Banking. One of the things the customer gets annoyed is the few seconds the machine waits for the PIN after which it retains the card.0 6. 95 .10 Very M uch Healthy am ount 7 14 69 Beara ble Not th at m uch Fig. Customers when asked how annoyed they are with ATM services? Majority answers ‘Not that much’.

22: Credit Card Used Table 2.7 100.3 100. 13 3 7 77 Once a Year Quarterly Twice a year Once a month Fig.Yes No 23 77 Fig.3 76. 2.23: Frequency of credit Card Used 96 .0 Valid Percent 23. It means that they are not much satisfied about the credit card service. 2.3 76.0 From the graph I see that only 23.7 100.0 Cumulative Percent 23.3% people agreed that they used credit card and most of the customers don’t use the credit card.22: Credit Card Used Valid Yes No Total Frequency 7 23 30 Percent 23.

0 Cumulative Percent 76.7 100.23: Frequency of credit Card Used Valid Once a year Quarterly Twice year Once month Total a a Frequency 23 2 1 4 30 Percent 76.7 100.0 Valid Percent 76. 2.0 Only 23% of the customer I surveyed uses credit cards.3 13.3 100.3 100. But much to modernization. like once a year.3 86.0 Valid Percent 16.24: Knowledge of Relationship Manager about PB Service Valid Strongest Very Strong Moderately Strong Total Frequency 5 9 16 30 Percent 16.0 53.0 This is an essential measure in determining the customer satisfaction level. Customers rated this very liberally.3 100. Fig. This graph suggest that what the customers think about the PB RM’s & ARM’s knowledge level about the subject matter they deal with.7 30.7 6.7 3. a change in the pattern is seen to have followed until very recently. 2.0 53.7 6.Table 2.24: Knowledge of Relationship Manager about PB Service Table 2. Know ledge of Relationship Manager 60 50 40 30 20 10 0 Strongest Very strong Moderately strong Fig. 97 .23 depicts that most of the people who use credit cards uses it very little.7 30.3 100.7 3.0 70.3 13. This can be explained with the limited usage of credit cards in the country.7 83.0 Cumulative Percent 16. Almost all agreed strongly that the employees are well skilled for the profession they do.

2% 2 6. 14 cells (87.013 .0% 5 83.0% 11 100. The minimum expected count is .0% 0 .0% 4 13. Cross tabulation 2.0% 6 54.8% 50.0% 5 100.827a 22.0% Student 0 .0% 6 100.0% 0 .0% 0 .0% 3 27.0% 0 .0% 2 18.0% 0 .9% 50.3% 0 .0% 1 9.34.041 2.0% 5 100.0% Read instructions Very well Total Count % within Read instructions For the sake of reading Count % within Read instructions At times Count % within Read instructions Very often Count % within Read instructions Count % within Read instructions Chi-Square Te sts Value 20. Read instructions * Annoyed with ATM machine services Re ad instructions * Annoye d with ATM machine se rv ice Crosstabulation Annoyed with ATM machine service Healthy Very Much amount Bearable Not that much 0 0 4 4 . Read instructions * Profession Re ad instructions * Profe ssion Crosstabulation Profession Employee Housewife 8 0 100.7% 20 66.7% .0% 0 .2% 2 6. Sig.554 29 df 9 9 1 Asymp.0% 5 100.0% Total 8 100.5% 20 69.0% 30 100.1% 6 20.110 Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases a.0% 2 18.0% 0 .0% 8 72.7% Total 8 100.Cross Tables: Cross tabulation 1.0% 5 100.009 .0% 11 100.0% Read instructions Very well Total Count % within Read instructions For the sake of reading Count % within Read instructions At times Count % within Read instructions Very often Count % within Read instructions Count % within Read instructions 98 .7% 3 60.0% 0 .0% 29 100.0% 0 .0% 0 . (2-sided) .5%) have expected count less than 5.0% 2 6.0% 5 100.7% Businessman 0 .3% 3 10.3% .0% 1 16.0% 2 40.0% 0 .

000 . Sig.3% 5 100.5%) have expected count less than 5.0% 30 100.616a 24.0% 11 100.001 Pearson Chi-Square Likelihood Ratio N of Valid Cases a. 99 .420 a 28. Read instructions * Educational Qualification Re ad instructions * Education Le v e l Crosstabulation Education Level Undergra Postgraduate duate 4 4 50.0% 16 53. (2-sided) .0% Read instructions Very well Total Count % within Read instructions For the sake of reading Count % within Read instructions At times Count % within Read instructions Very often Count % within Read instructions Count % within Read instructions Chi-Square Te sts Value 18.000 .0%) have expected count less than 5.33.0% 0 . (2-sided) .000 Pearson Chi-Square Likelihood Ratio N of Valid Cases a.Chi-Square Te sts Value 32. Cross tabulation 3. 14 cells (87. 6 cells (75. The minimum expected count is 2.0% 1 16.958 30 df 3 3 Asymp.7% 0 .0% 14 46.0% 5 83. Sig.0% 5 100.7% 50.0% 11 100.33.3% Total 8 100. The minimum expected count is .349 30 df 9 9 Asymp.0% 6 100.

7% Total 8 100.33.0%) have expected count less than 5.0% 5 45.0% 30 100.0% 5 100.Cross tabulation 4.023 Pearson Chi-Square Likelihood Ratio N of Valid Cases a.7% 0 .7% 19-28 Read instructions Very well Count % within Read instructions For the sake of reading Count % within Read instructions At times Count % within Read instructions Very often Count % within Read instructions Count % within Read instructions 3 37. 20 cells (100. (2-sided) .0% 1 9.0% 6 100.7% 2 40.0% 2 18.5% 0 .1% 2 6.0% 1 9.2% 2 6.5% 13 43.7% 29-38 >59 0 .3% Total Chi-Square Te sts Value 22.883a 23.2% 8 26.0% 0 .0% 11 100.0% 1 16. The minimum expected count is . 100 .7% .0% 0 .5% 1 16.029 .0% 4 66.7% 0 .0% 62.0% 2 18. Sig.1% 5 16.633 30 df 12 12 Asymp.0% 3 60. Read instructions *Customer’s Age Re ad instructions * Custome r's Age Crosstabulation Customer's Age 39-48 49-58 5 0 0 .

333(a 8 . it can be seen that those who read instructions are more satisfied than those who rarely do.003 Square ) Likelihood Ratio 24. 40.Cross tabulation 5. Asymp.7% 3 60.0% 30 100. (2sided) Cross Tabulation Analysis: According to the figures in cross tabulation 1.0% 3 100. 14 cells (93.0% 2 14.23. This can help to correlate 101 . The minimum expected count is .3% 100.0% 14 100.3% 19 63.0% 1-6 6-12 >12 Total % 13.0% 1 33.0% 12 85. Number of months with PB * Rate Customer Service of PB Number of months with PB * Rate Customer Service of PB Cross tabulation Rate Customer Service of PB Total Neither Excellen good nor t Good bad Number of <1 months with PB Count 1 % Number months PB Count % Number months PB Count % Number months PB Count % Number months PB Count within of 25.0% 1 33.3% .0% with 2 within of 40.3% 0 .0% with 0 within of . Sig.3% with 4 3 0 4 75.3%) have expected count less than 5.0% with 1 within of 33.546 8 .3% 7 23.0% 5 100.3% Chi-Square Tests Value df Pearson Chi.002 N of Valid Cases 30 a.

we have several independent variables. That whose age ranges from 39-48 mostly reads instructions for the sake of reading. These are the few insights taken from the tables. The next cross table is regarding reading the instructions with their respective ages. The fifth cross table portrays the relationship between the numbers of months a customer has been banking with BRAC Bank Premium Banking with rating the CS of PB. Although it can be said that the trend is that higher the number of months that a customer banks. The age ranges from mainly 29-38 years. There is a relationship between reading instructions and educational qualification of the customers according to the chi-square test. In a multiple regressions.05. since the younger customers tend to read much more than the elder ones. The result is surprising. which depend on one another because of an underlying theoretical reason. In the second cross table. But a technical problem persists. it is found that those who are businessmen and have accounts in BRAC Bank tend to read instructions way more than those of other profession like employees. I undertook many variables with which I tested through cross tables. but the percentage in the table does not show much difference between those who are bachelor degrees and those who are master degrees. The table represents that customers who banked for 6-12 months have rated PB as either ‘Excellent’ or ‘Good’. housewives and others. I am sure because the assume value is less than 0. but I considered only those which the passed the chi-square test. This is also made sure by the chi-square test. Regression Analysis: Introduction: Regression analysis is a modelling technique that identifies. So it is not proper to state that pattern. and describes the relationship between at least two variables. better is the ranking for CS. customers who’ve been banking for more than 12 months tend to rate the CS equal amounts of ‘excellent’.because the chi-square test helped me be sure that there exists some relationship between the variables. ‘Good’ and ‘Bad’. Description and specification of the model: The dependant variable of this model is CSI (Customer Satisfaction Index) and the independent variables are CII (Customer Informed Index) and customer’s 102 . quantifies. which are used to predict the dependent variable. students.

This model also includes a dummy variable as another independent variable in order to test the relation whether customer’s employment status has any relation. a dummy variable. ε = Random error with the mean 0. CRI. 1 dummy variable is used where the variable takes the value 1 for employed customer and it takes the value 0 for unemployed customers. Usually. Dummy variables are useful because they enable to use a single regression equation to represent multiple groups. Here. However. The population multiple regression equation is as follows: Y= β0 +β1X1 +β2X2 + ε Here.employment condition. a dummy variable is a numerical variable used in regression analysis to represent subgroups of the sample in your study. The dummy variables act like 'switches' that turn various parameters on and off in an equation. Y = CSI Index β0 = intercept of the regression line. In research design. More importantly. β1 = coefficient of independent variable X1 (CII) β2 = coefficient of independent variable X2 (Dummy Variable) X1 = CII. a 0. This means that we don't need to write out separate equation models for each subgroup. CSI index (Customer Satisfaction index) includes 8 dimensions of customer’s satisfactions. takes the value 1 for employed customer and it takes the value 0 for unemployed customers. it is assumed that these two independent variables are expected to be linearly related with the dependent variable. The independent variable CII (Customer Informed Index) is measured by using 3 critical factors that strongly indicates customers’ degree of being informed of the services provided by PBS. It is expected CII is positively related with CSI and dummy variable is also expected to be positively related with CSI. a dummy variable is often used to distinguish different treatment groups. X2 = Dummy variable. 103 .

5 Other things remaining the same.. if the CII (Customer Informed Index) increases by 1.n] Model Estimation & Interpretation: The regression equation is Y = 331 + 0.…. C0+C1X1+ ……….2.. We have assumed some standard clauses to use ordinary least square method..5% 104 .2.5 lower than unemployed customers.n] [ i=1. the CSI (Customer Satisfaction Index) will go up by an additional 0. surprising it is the opposite of the prior expectation.. Co-efficient of determination R2 = 22... b0 =331 means if all the independent variable takes the value zero. which are known as classical group of assumptions: These are:     Xi's are fixed or if Xi’s are independent of εi's...Assumptions of the model: For this model we are assuming that other variables that have influences on CSI Index as constant. V (εi)=E [εi -E (εi)]2 = E (εi 2) = σ2E is constant.XK are linearly independent.n]  There is no set of nonzero constant Co. [ i=1. ….5 X2 β0 = 331 β0 is the intercept of the regression line. It basically indicates that on an average the less satisfied with the services than the unemployed customers.2. on an average.+CkXk = 0.234 X1 .Ck such that.234 Other things remaining the same. on an average. εi's are random variables with mean = 0.…………... β2’s estimate b2 = -11. the CSI (Customer Satisfaction Index) will be 331. X1. Ei's are independent of each other..n] [ i=1. Here.. [ i=1..….…. β1’s estimate b1 =0. So.2.234.11..n] [ i=1. C1.2. for employed Customer CSI (Customer Satisfaction Index) is 11.….…..

5% means almost 22. So.8% means almost 16. the methodology of hypothesis testing is used to test a null hypothesis to find out whether the combination of all the variables is useful predictors of the dependant variable.R-sq is 22.65 P-value 0. Importantly. given the other variables in the regression model.50 17. (The following two tables provides the required value for the hypothesis test & interval estimation) Standard Coefficients Error Intercept 330. H0: βj = 0) are used to determine if a specific independent variable is conditionally important in the multiple regression model.71 27.80 -0.8% R-sq (adj) is the adjusted or corrected co-efficient of determination.41 25.23 0.5% of the observed variability in the dependent variables is explained by the independent variables of our regression model.00 0.09 2. even if these variables are irrelevant to the model. it raises the value of R2.06 -48. Another tests of hypothesis for partial regression coefficients (That is. Hypothesis Testing: In this section of regression analysis.82 0. in cross sectional data R-sq is usually very low. Adjusted R2 = 16.8% of the observed variability in the dependent variables is explained by the independent variables of our regression model. a problem of using R2 as an overall measure of the quality of a fitted equation is that when we add more and more variables in a model. By using the Student’s t statistics and p-value it is concluded whether or not a particular predictor variable is conditionally significant. Rather the adjusted coefficient of determination should be used for measuring the overall performances of the model.08 X2 -11.02 ANOVA df SS MS F Significanc eF 105 .52 Lower 95% 274.35 X1 0.80 t Stat 12. So.01 0. R2 (adj) is 16.60 0. R2 is not a good indication of the model’s overall quality. this regression equation has a very low explanatory power. However.03 Upper 95% 386.

5 ) >F tab. The p-value or the lowest level of significance at which the null hypothesis can be rejected is 0.Regression 2 Residual 27 Total 29 7928. Accepting this hypothesis will conclude that none of the predictor variables regression model is statistically significant and thus it provide no useful information.42 27253.05 = F 2. t cal = 12.052 Here t cal is greater than t tab.92 0.031.3.81 1009.25 = t 27. the entire variable as a whole can predict the dependable variable (CSI) and the combined effect of these two variables do improve the model that predicts CSI. α = F 2. Null Hypothesis Ho: β1= β2= 0 Alternative Hypothesis H1: At least one βj ≠ 0 Decision Rule: We reject the null hypothesis if Fcal >F tab Or.0. 0. (SSR/k) / [SSE/(n-k-1)] >F tab Fcal = 3.031 Test of Significance for the whole Regression: First. For the intercept the Hypothesis Testing: (Two sided test) Null Hypothesis Ho: α = 0 Alternative Hypothesis H1: α ≠ 0 Decision Rule: We reject the null hypothesis if T cal> T tab. 27.67 3. 30-3. hypothesis test is to test a null hypothesis to find out whether the combination of two independent variables is useful predictors of the dependant variable.35 Here.2.85 3964.00.05 = 3. .0. Now.4.25 =2. F cal (j = 1. 0. Therefore.09 t tab = t n –k-1.92 F tab= FK. the hypothesis testing for each of the coefficients is done to analyze if individually they have any influence on the dependent variable keeping the other variable constant. 106 . α / 2 = t 30 -3. therefore I fail to reject the null hypothesis against the alternative hypothesis at 5% level of significance with the two-sided test. n-K-1. So. The p-value or the smallest significance level at which the null hypothesis can be rejected is 0.40 35182. . I reject the null hypothesis that all coefficients are zero against the alternative hypothesis at 5% level of significance.

the CII is statistically significant predictors of the dependant variable (CSI). β1.5 = 1. Therefore. However.701 Here t cal is greater than t tab . Hypothesis Testing For β 2: Null Hypothesis Ho: β2 ≤ 0 Alternative Hypothesis H1: β2 > 0 Decision Rule: We reject the null hypothesis if. the p-value or the smallest significance level at which the null hypothesis can be rejected is 0.0.001. t cal> t tab t cal = (b1-β1) / Sb1 = 2. . α = t 30 -3.0. Confidence Interval: Another way of determining whether a specific independent variable is important in the multiple regression models is to find the confidence interval. Therefore I fail to reject the null hypothesis against the alternative hypothesis at 5% level of significance. .5 = 1.65 t tab = t n –k-1. This indicates that the customer’s employment status is not a statistically significant variable for predicting customer’s satisfaction about the service.0. and it has a positive relationship with the CSI (Customer Satisfaction Index). 95% confidence interval for β 0: 107 .52.701 Here t cal is less than t tab . α = t 30 -3. β2. However.0. the p-value or the smallest significance level at which the null hypothesis can be rejected is 0.5 = t 27. . Therefore I reject the null hypothesis against the alternative hypothesis at 5% level of significance.5 = t 27. .Hypothesis Testing For β 1: Null Hypothesis Ho: β1 ≤ 0 Alternative Hypothesis H1: β1 > 0 Decision Rule: We reject the null hypothesis if. is estimated in the following. t cal> t tab t cal = (b2-β2) / Sb2 = -. The 95% confidence intervals for β0.85 t tab = t n –k-1.

it can be conclude that the intercept a statistically significant predictor in the multiple regression model. it can be conclude that X1 (CII) is a statistically significant predictor variable in the multiple regression model. Here the 95% confidence interval for β1 does not include 0. Analysis of Residual: The normality plot indicates an approximate linear relationship. Based on this confidence interval. and thus I reject the two-tail hypothesis that this coefficient is 0. 95% confidence interval for β 1: The coefficient for the CII has a 95% confidence interval 0. Here the 95% confidence interval for β0 does not include 0.02. Based on this confidence interval. 108 .The 95% confidence interval for Y-intercept (β0) ranges from 274.41. As the confidence interval includes 0. thus it is impossible to reject the assumption of normally distributed residuals. and thus I reject the two-tail hypothesis that the intercept coefficient is 0.03< β2 <25.82. it can be conclude that the dummy variable (customer’s employment status) is not a statistically significant predictor variable in the multiple regression models. 95% confidence interval for β 2: The coefficient dummy variable has a 95% confidence interval -48.06< β1 <0. and thus I cannot reject the two-tail hypothesis that the intercept is 0.60 to 386. Based on this confidence interval.

25: Normal Probability Plot of Residual The next residual analysis examines the relationship between the residual and the dependent variable (both the observed and predicted value).) cannot be proved by our findings. Therefore. another hypothesis that the employed customers (who are working in any organization) are more satisfied than the unemployed customers (students. Research Implications: Hypothesis test of the coefficients of this model indicates that the independent variable CII is significant. where as another independent variable the employment status of employees is not statistically significant. thus the model errors is stable over the range. The hypothesis of this regression analysis that “The customers who are more informed about the services tend to be more satisfied than those who are less informed.Normal Probability Plot of the Residuals (response is Y) 2 1 Normal Score 0 -1 -2 -50 0 50 Residual Fig 2. this plot does not provide any clear relationship or any useful information.” proved by the above findings. However. However. there is no relationship between the residuals and the predicted value. The confidence interval analysis also supports the above findings. housewife etc. 109 . the findings indicate that the level of customer satisfaction about the services provided by Premium Banking is positively related with the level of knowledge about its service package by its customers. But.

So. Unauthorized use of different ID in system. They are using only one software. but the following factors seem to me the main points of weakness of this study. is not using advance and develop software.     Inadequate facilities of Ascend Millennium Banking System. The major limitations of this report are as follows:      Large-scale research was not possible due to time constraints. Skilled human resource in every department Inadequate work force Lack of proper coordination among different departments. It is very busy office.   I was not able to visit the different branches of BRAC Bank Ltd. Conservative Management. In this place employees get very little time to teach theoretical knowledge to the trainee. the customers for FDR account only come in the month of 1 to 15.  In addition to that. Availability of the reference book is another limitation. Non availability of data in a systematic way.Problems with the Model: Before moving to the findings of this regression analysis it is highly recommended to the reader to the aware about some the problems/limitation of this analysis. 110      . Like any other study the limitations of the study is not out of questions. the sample size is relatively small so the responses may not be completely free from bias. Findings: On the basis of previous analysis and practical experience of 3 months internship program. Lack of motivation and training program. the following findings are observed during the research period: Need professional data entry operator. BRAC Bank Ltd. Time constraint. Furthermore. they were not available all the time.

 111 . Ensure that every one working in Software knows it properly and giving them personal ID. Need a separate phone line service for the PB clients. checking and over documentation. which can improve the efficiency as well as quality of the work. BRAC Bank Ltd. So increased number of new bank creates sever competition in consumer service. Less secured than the department should be. Setting proper planning for each and every work as well as for the whole department. Proper maintenance of files and necessary files and documents on daily basis. Proper managerial observation and cooperation. Need a separate PB lounge to save the customer’s time.    And most of all change of managerial attitude and view point. Separating Card department and concern operation. Avoiding duplication through accuracy and efficiency. Developing motivational program and training program. Limited knowledge about PC and related software. No structured reconciliation process. The points are as below. Duplication of work like.         Designing jobs on priority basis. But other banks are using many developed techniques and software.     Absence of proper guideline/ planning of respective job. is doing their Office work manually. I have come up with some points. Less structured than other departments. Day by day new upcoming banks are coming with many new services which are a threat for the bank. Assigning necessary manpower for every job.    Recommendation: As I have gone through all the departments under Premium Banking.

It is the pioneer amongst the local banks in introducing innovative products like SMS Banking. I was authorized to prepare a report on customer satisfaction about the Premium Banking service and the functions of BRAC Bank Ltd. I wish a prosperous future for the Bank. It was a great experience for me to have exposure in the practical field. There is huge pressure of work in BRAC Bank Limited hut the coordination that I get some officials was very helpful for me. Bangladesh has not lagged behind. To become market leader in providing banking services. Modern Banking is an outcome development driven by changing financial activities and lifestyle. BRAC Bank Limited is a third generation bank inaugurated on 4 July 2001 with a mission of providing best banking service in the country to enhance economic activity.Conclusion: We moved a long way from the time when the banks were deposit taking and moneylending institution. As a new bank it has a long way to go.. Though having some drawbacks the bank’s overall performance is satisfactory. for partial fulfilment of my course requirement. introduction of sophisticated banking instruments i. In the world of global economy. attitudes and methods in banking have undergone a marked change all over the world. In this regard BRAC Bank promises to fulfil every possible Customer needs with high quality service and satisfaction. BRAC Bank is constantly try to cross the obstacles regarding typical business oriented ideas and come up with innovative curtailed to its Consumers need to harvest maximum benefit for them. Entering as a new bank in private banking scenario of Bangladesh. commitment & dynamic leadership of its management over the periods. Banks are required to participate in the nation building activities and act as agent for bringing about socioeconomic changes. ATM services is a demand of time. The old concepts. 112 . banking needs have become more diverse and exotic than ever before. online banking services. This success has resulted from the dedication. BRAC Bank is maintaining it’s competitiveness by leveraging on its Online Banking Software and modern IT infrastructure.e.

Chapter 3 Cases 113 .

The majority vote was for the Ac bus and thus the problem was solved. After a long enthusiastic moment. arranges picnic outside Dhaka. He submitted an application to the head office of BRAC bank Ltd. the two conflicting groups understood that the situation was getting worse for no reason and they mutually resolved the disagreement by coming to a 114 . Everybody was highly glad that they began to take preparation for the picnic from one month prior. thought of making this holiday a memorable one and took the initiative of going to a picnic to Cox’s Bazar with the whole team members. Finally. the head office granted the proposal. for asking the permission of arranging a picnic. it was turning into a stormy debate and the executive officer Mr. finally that day came. So. BRAC bank Ltd. the bank declared holiday for consecutive three days on the occasion of the Lailatul Barat. So this disagreement was going on and on. But during the preparation time. Gradually. One group was saying that the reserve bus would be in front of their office when they would set off for Cox’s Bazar while other group was saying that they would set off from Gabtoli.m. Finally it was decided that a vote would be held between AC bus and non AC bus to resolve that problem and they would choose the one which would get the majority vote. The Relationship Managers of BRAC Bank Ltd. they frequently need some arrangements of picnics and tours that can be helpful for their refreshment and entertainment. But after a long period of time. But at the eleventh hour. The picnic team would set off for Cox’s Bazar at 8 p. lots of conflict and disagreement arose regarding different matters. The first issue of controversy was whether they would reserve an air-conditioned or non air-conditioned bus. The picnic fee per person was Tk 2500 and the rest of the financing was contributed by the Agrabad Branch of BRAC Bank Ltd. It was 14th February’2008 and the office was open on that day. After that.Case 1: Picnic to Cox’s Bazar: Bank jobs are usually routine jobs and employees get fed up with their monotonous nine to six job life. Rahman who was given the responsibility of reserving the bus was annoyed with all those controversies and he said that he would not go to Cox’s Bazar. Some preferred AC bus while others preferred non AC bus. Everybody was waiting for the time with great eagerness. another issue of controversy arose between two groups of employees. The interesting fact is that nobody could concentrate on work due to excitement about the picnic.

they replied me saying that all the departments have only one executive/manager who can access the software. Finance director (line manager of IT manager) in the loop. They had to attend the office on that day but they were still very refreshed after a long journey. He called me and gave me a passionate hearing. He explained in detail why the permission was required and why in business context the permission requirement of Premium Banking was different from other departments. he was agreed. he wrote a email on top of the previous emails. my manager asked me to write a mail to our IT counterpart so that they give all of the Premium Banking team members at head office an access to the software we use in BRAC Bank Ltd. IT manager. But unfortunately IT team did not understand our concern. When the reply came I understood that there is a communication gap between. and IT team has misunderstood us. Finally. The whole team really spent a marvellous weekend at Cox’s Bazar. The finance director replied to the mail shortly instructing the IT team to give permission. on 18 th morning. Case 2: Conflict between two departments: Little after my joining. the IT team was also convinced with the explanation and they gave 115 .common decision that they would set off from their office. after becoming full aware of the situation. they all apologized to Mr. All the employees were working with renewed energy and vigour. It was really a different experience!! I never had the idea about how all these preparations take place in an organization while arranging such outdoor programs. his line manager. IT team members. So. I think this sort of official picnics should be arranged quite frequently to break the monotony of the employee’s lives.m. Then. They termed such an effort “over enthusiasm and over exercise of authority”. Rahman and requested him to change his negative decision. they returned to Dhaka at 7 a. keeping our team mates. I forwarded the mail to my line manager. and therefore there is no reason to provide access to each individual of Premium Banking access to the software. I had great willingness to go with them but I was not allowed to go from my family. and asked for his advice. The vision of seeking such permission was to enhance the operational excellence and make executives more independent to handle customer issues. After enjoying a joyful weekend with the co-workers.

As I was working with Premium Banking in the center point. Case 3: Sponsoring a Car for “Close up 1: Tomkei Khujche bangladesh”: Meeting the corporate social responsibilities. a company can enhance its widespread recognition. this year has financed the famous NTV talent hunt “Close up 1: Tomkei Khujche bangladesh”. Since its inception BRAC Bank Ltd. The branch has already started to get acceptance from customers..the permission. Towhidul Islam. The BRAC Bank Ltd. Case 5: Celebrating my birthday at office: August 02 was my birthday. I was not aware that my colleagues know my birthday. my team mates had arranged a surprise party for me. Just before close of business. This was a good lesson for me about how to handle conflicts in a corporate environment. That was the grand inauguration of BRAC Bank Ltd. They brought a cake with a burning 116 . has been donating enormous money for social purposes. BRAC Bank Ltd. and also I did not tell anyone about the birthday. One limitation of this branch is that it has only general banking section and no corporate banking facilities in house in the branch. The Marketing department of BRAC Bank Ltd. headed by Manager Marketing and MD of the bank signed a contract with NTV on this. donation for such a television talent hunt is a milestone in the history of Bangladeshi TV programs. Relationship Manager on different occasions and activities. 2008 was the joyful day colored with balloons and posters that the new branch started its journey. with participation from Western Union Money Transfer. This is the 29th branch of BRAC Bank Ltd. in Mohammadpur Asad Gate. Case 4: A new branch at Mohammadpur: A major incident took place during the course of my internship. August 18. The sponsoring has been made in terms of a prize – a Car – that will be donated to the winner of the talent hunt. At the very first day more than hundred customers opened their savings account in that branch. I had to communicate with the in charge of Premium Banking in the new branch – Mr.

At that time I was working around the cash section. When his time came he threw the cheque in the face of the cash officer and demanded the delivery. Bank is an institute for customer care and the interest of the customer should come first. I have never faced such event and I think that situation could be handled in a better way. I was astonished to see the whole situation. Seeing this other customers was also telling about their cash system which is not good. There was a huge line in front of the cash withdrawal counter that day. but it was a unique experience for me. 117 .candle on top to my desk. He came down from the cash counter and charged the man verbally. It was simply a mess inside the bank. with the card another gift was a novel book of Shirshendu Mukharjee. The number of officer at the cash counter should be increased and the bank officer should never behave to a customer in that way. and we all participated in the refreshment. The situation calm down and that man went without withdrawing money. all of them were singing – “Happy birthday to you …” for me. At last the branch manager came to handle the situation. he was annoyed and cursing the bank authority for wasting his valuable time by making him to stand in the line. Customers need to wait for long time as there officers are less. Such parties are really motivating for employees. He could handle it in a more mature way. and add values to the satisfaction of individuals. Everybody was shouting. They presented me a card where all of them wrote to me their greetings and blessings. Therefore. A middle aged gentleman was waiting to withdraw for a pretty long time. they must keep one or two extra officers in the cash department. Case 6: An incident in cash counter: In an early June afternoon the bank was open in its usual time. It was humiliating for the officer on duty at the cash. He reacted violently. I think that day the bank manger also did not handle the situation properly. He was cursing the inefficiency of the cash officers. She took the customer involved to his office with two other senior bank officers and bullied the man thoroughly. I blew the candle off and cut the cake. whatever he may did.

he was used to offer chocolates to NSU students. When such an erroneous cheque book was handed over to the customer. another customer. The intern took initiative to immediately issue a new cheque book and handover it to the customer. with A/C no: 5678 (for example). who was Relationship Manager and the Chittagong. the resignation of people like Mr. So. After talking a while with the intern the customer was calmed. One day I was in bank at 6 pm. He made a significant contribution in the promotion of Banani branch earlier and helped the bank to reach a certain benchmark. On one occasion a customer named “Mohammad Yakub” with A/C no: 1234 (for example) requested for a cheque book. and even threatened saying that he would escalate the issue to higher level management. Other officers were also whispering 118 . The intern who was attending the phone call gave him a patient hearing. Yakub”. Wahid Mahmud adversely affected BRAC bank Ltd. Wahid Mahmud.Case 7: Cheque book being transferred to a wrong customer: I was enrolled in the Head Office of BRAC bank Ltd. to retain the client. For example: NSU is a big client of BRAC bank Ltd. when they come for their registration purpose. The customer became happy with the straight forward response. Suddenly I noticed that the staffs of our branch are moving haphazardly. The production department also failed to deliver the cheque book to the customer within promised deadline. But the concerned department for cheque book production did a mistake and produced the cheque book in name of “Md. he filed a complain. I had to manage the PB customers. He called HO corresponding department over telephone and took them to task. for the unfortunate incident…. Agrabad Branch. and replied “we are sorry. Case 8: Resignation of staffs: It was the middle of my internship period. Mohammad Yakub he found the mistake and was very annoyed. Considering all these. Mr. it was very unexpected mistake on our part”. The reason was a rumour that a key people of the branch have resigned because not getting promotion though he deserves it. it was a very significant incident during my internship time. So. dear sir. of the same branch. He was Mr. He has a very convincing personality.

To me. Famous as a cost cutting manager. making the work environment better. she was a person of different personality. my branch manager was Mr.A. Employees were thinking of a transfer or even leaving the bank at her disgraceful behaviour. His death was an enormous loss to the bank. maintain good interpersonal relationship with all employees inside the bank. He was also thinking of making different department of the bank independent. He developed a development blueprint covering all the expansion and enhancements of the bank. She was Mrs. The plan covered introducing new branches.E. Mr. For example. a new branch manager came replacing him. Eventually it turned the branch most spacious than before which helped customers to build a positive impression about the bank. But the new manager was little aggressive and dominant. ATMs. with a long vision and high ambition passed away just before my internship. Case 10: Joining of new MD and CEO: Mr. she used to shout on employees at little incidents. he redesigned the interior decoration for the branch. Imran Rahman.that as he is not here anymore. so they are thinking to leave as well. It’s now a matter to see where this new CEO and MD can lead BRAC bank Ltd. Therefore BRAC bank Ltd. He used cabinets for the first time instead of traditional tables for keeping registry books and other documents. Muhaimen was very rude and stubborn in his behaviour. He introduced a new way of banking with which the stuffs were not acquainted at all. A. Ferdousi Begum. Case 9: Joining of new branch manager: When I was enrolled for my internship. MD and CEO of BRAC bank Ltd. Even customers were not at all satisfied with her behaviour and hot temper. Sabbir Ahmed. etc. 119 . But just before the completion of my internship. Muhaimen became the new CEO and MD of the bank. He changed the entire set up of the branch and rearranged the furniture placement. No line managers or department’s heads feel comfort to talk with him for his ill behaviours. Earlier manager was not dominant at all. SME units and services. Mr. should not think only for them but also for the whole unit.

com Several news letters from BRAC Bank Ltd. Books of Financial Management.bracbank. Conference of BRAC Bank Ltd. Several Booklets of Premium Banking BRAC Bank Website:www. Annual Report of BRAC Bank Ltd (2005-2006). 120 .Bibliography:         Prospectus of BRAC Bank Ltd. Several Booklets of BRAC Bank Ltd.

Appendix 121 .

Gulshan c.Sample Customer Survey Questionnaire: 1. How did you find out about this account at first? a.001-500. Do you think the credit card facility provided for Premium Banking clients is satisfactory? If not then please specify the problem in the blank space. 10.000-50. Where do you stay? a. Housewife e. Marital Status: 6.000. Gender: Male Female c. Educational qualification: a. Age: a. Others 8. Yes b. 29-38 3. 39-48 d. 1 to 6 month e. Secondary school certificate 4. Others ______________ 7. Dissatisfied b. Yes they are very helpful? a. Do you think All Relationship managers are knowledgeable of their customers and _____________________________________________________________________ _____________________________________________________________________ 11. Higher secondary certificate d. Uttara e.19-28 b.000 b. From my friend c.000 c. Bank’s Brochure e. 49-58 e.001-5. Not that much satisfactory d. No 10. Less than 1-month d. Company website b. Masters Degree b. 500. From RMs of the bank d. Neutral c. 50. More than 2 year b. 6 month to 1 year Married Single 5. Do BRAC Bank PB provides quality services? 9. Businessman d. Banani b. Profession: a. Student b. 59 and above 2. a. No c. Very satisfactory b.000 122 . Employee c. For how long you are using the Premium Banking Service of BRAC Bank? a. Dhanmondi d. More than 1 year a. What is the average amount of Bangladeshi Taka you maintain in your account(s)? a. Other______________________ 12. Bachelor Degree c.

Relationship Managers are very helpful d. All details of customer are documented Your expectation from PB is matching with you 123 . All RM’s are knowledgably on customer. (Example. All of the above 18. Do you face any difficulties in opening the account or depositing or withdrawing the cash? Please specify the problem in the blank space. To what extent do you have problems with the number of the ATM machines? 16. Do you use ATM Card? Very much Very Often 1 1 2 2 15. No.d. 5.000 e. sometimes No Not at all Not at all b. a lot b. not at all d. PB provides quality services c. In any kind of need Premium Banking (PB) provide quick responses. absolutely b. not at all Yes 3 3 4 4 5 5 c. BRAC Bank PB has fragmented network in their branches. it is very much secured 14. Yes.000. Neutral d.000. >10. How often are you annoyed with the ATM machine services? 17. Please state your satisfaction level regarding the Premium Banking service of BRAC Bank. Yes.000 13. Maybe c. Very satisfied b. Would you recommend PB service to any of your friends? a. Very dissatisfied Strongly Disagree 1 c.001-10.000. a. Dissatisfied Disag ree 2 Neutral 3 Agree 4 Strongly Agree 5 BRAC Bank PB provides quality services. Never 19. No. A service is quick/fast. I have signed up for PB services because: a. Satisfied e. Relationship Managers (RM) are very helpful. Yes.it is time consuming or hassles to pay the money) a.

BRAC Bank has a good variety of product Interest rates are reasonable You like the car loan facility of BRAC bank BRAC Bank PB client get the best service regarding loan facilities BRAC Bank has the maximum type of FDR “I think the introduction of PB has increased BRAC Bank’s quality in value added service” 124 .

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