Internship Report

On

General Banking & Marketing Strategies of Financial Products
Of

5

INTERNSHIP REPORT
On

“Marketing

Strategies of Financial Products & Customer Services”
Of

Submitted To
Syeda Rownak Afza Senior Lecturer BBS, BRAC University.

Submitted By
Rezwan Bin Mostafa Student ID: 06104020. BBS Department,BRAC University.

Date Of Submission
6th June, 2010.

BRAC University
5

Preface

This report is concerned to be a brief study of the operation, function, tasks and services of AB Bank Ltd. Banking plays an important role in the commercial and economic development of a country. Now- a- days banks are using different modern technologies, which influence the managerial activities, that’s why I decided to do my internship training in the bank. In preparation of this report I have tried my best to provide all possible information about the operation, function and tasks of ABBL in brief and comprehensive form. It also includes a brief description of different departments where I have worked during my internship. I have also tried my best to use simple and easy words and language.

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Subject: Submission of Internship report.Letter of transmittal Syeda Rownak Afza Senior Lecturer BRAC Bussiness School BRAC University. I am grateful to you that you give me the opportunity to do this report. This report on “Marketing Strategies Of Financial Products & Customer Services of AB Bank Ltd. to promote their products and how they provide customer services. I have enjoyed preparing the report though it was challenging to finis within the given time and limited access.B. I tried my best to compile the information for this report comprehensive as possible.06104020 BRAC Bussiness School BRAC University. Thanking you Rezwan Bin Mostafa ID.” is prepared to fulfill the requirement of the Internship program of B. Madam. which was vey interesting.A degree. 5 . This report focuses on the different marketing strategies used by AB Bank Ltd.

insstructions and advice and for motivating me to do this report. constructive. I would like to thank almoghty Allah for his grace in accomplishing my internship report timely.Suruz Ali Vutto (SAVP) operation manager of Principal Branch AB Bank Limited. guidance.Acknowledgement First of all. I am also thankful to HR Division of AB Bank Limited for giving me the opportunity to conduct the internship in Principal Branch of AB Bank Limited. I would like to express my gratitude to my academic supervisor Syeda Rownak Afza from the core of my heart for her kind support. supervision. Ashfaq (Principal Officer) who helped me a lot to complete my internship report by providing data about the financial product of AB Bank. 5 . I would like to thank Mr. I am also grateful to Mr.

Dubai Bank Limited (name subsequently changed to Union Bank of the Middleast Limited) decided to off load their investment in AB Bank Limited with a view to concentrate their activities in the UAE in early part of 1987 and in terms of Articles 23A and 23B of the articles os Association of the company and with the necessary approval of the relevant authorities.Executive Summary The study is about the General operations and Management of AB Bank Ltd. Consumer Loans. AB Bank commits to nation to take a lead in the banking sector through not only strong financial positions. which focuses on different types of customer services that are offered by AB Bank and their different financial product with different marketing strategies. Remittance services. but also through innovation of products and services. The objective of the study is to identify the strategies AB Bank uses to market their products. At the same time the paper focuses to gain an understanding on issues that are important for developing marketing strategies for financial services. In addition to the 73 branches within the country ABBL has a branch in Mumbai. UAE incorporated in Bangladesh on 31st December 1981 and started its operation with effect from April 12. AB Bank Limited. Debit & Credit card (Local & International). 1982. Bangladeshi Sponsor Shareholders. The bank has focused to bring services at the doorstep of its customers and to bring millions into banking channels those who are outside the mainstream banking arena. Beside that they have the wholly owned Finance company in Hong Kong in the name and style of “AB International Finance Limited” and representative offices at London and Yangon.e. Treasury products and 5 . It also ensures creating higher value for its respected customers and shareholders. they have been participating in different industrial and national development activities in addition to normal Trade Finance and SME development. AB Bank Limited is now fully owned by the Bangladeshis. i. Innovative products and services were introduced in the field of SME. Since their inception in 1982. ATM’s. Internet Banking. the first private sector Bank under Joint Venture with Dubai Bank Limited. 1982. AB Bank limited was incorporated in Bangladesh on 31st December 1981 as Arab Bangladesh Bank Limited and started it operation with effect from April 12. India. the shares held by them in the Bank were sold and transferred to Group “A” Shareholders.

Investment Banking. It envisages enabling customers to get banking services within the comfort of their homes and offices. The bank has successfully completed its automation project in mid 2008. 5 .Priority Banking and Customer Care. specialized products and services for NRB’s . strengthening and expanding its Islamic Banking activities.services. Structured Finance for Corporate.

6 Limitations 1.1 Mission Statement 2.0 Introduction of the Department 5 .8 Current profile of ABBL 2.9 Management Aspect 2.9.10 Management Hierarchy of ABBL 2.3 Nature of the study 1.0 Background of ABBL 2.3 Management Committee 2.9.2 Audit Committee 2.2 Vision Statement 2.11 Functional Hierarchy 2.4 Corporate information of ABBL 2.6 Objective of ABBL 2.5 Methodology of the study 1.3 Change of Name 2.1 Executive Committee 2.0 Introduction of the report 1.1 Background of the study 1.2 Purpose of the study 1.5 Values 2.7 Literature review 1-5 1 1 2 2 3 3 4 4–5 6 – 20 6 8 8 8 9 9 10 11 13 15 16 16 16 17 19 20 22 – 26 27 -36 27 Chapter 2 2.4 Scope of the study 1.9.7 Historical review of ABBL 2.12 General Banking Chapter 3 My Job Part Chapter 4 4.Table of Contents Contents Page No Chapter 1 1.

0 Customer Services offered of ABBL 7.60 57 57 57 58 59 59 59 61 .5 Islamic Banking 5.6 Investment Banking 5.3 SME Banking 5.3 Troimashik Munafa Hishab Chapter 6 6.3 Accounts Department 4.2 Identifying & Targeting Financial Prospects 6.66 61 61 Chapter 7 7.1 Understanding Consumer 6.6 Corporate Social Responsibility 57 .0 Marketing Strategies adopted by ABBL 6.0 Financial product 5.2 Current Savings Department 4.3 Product Differentiation Strategies 6.4 NRB Banking 5.7 New Product 5.2 Be a Millionaire in 3 years 5.4.2 Corporate Banking 5.4 Credit Department 4.1 Ogrim Munafa Patra 5.7.4 Channels of Distributions 6.5 Remittance Department 4.7.1 Credit Card 5 .7 Clearing Department 27 27 28 31 34 36 36 38 .6 Cash Department 4.1 Retail Banking 5.56 38 38 45 46 49 51 52 55 55 55 56 Chapter 5 5.1 ABBL Principle Branch 4.5 Pricing of Financial Products 6.7.

0 Performance of ABBL 9.2 Promotional Activities 8.1 Customer Retention 8.3 New MICR Cheque Book 7.4 AB Bank VISA Electron Debit Card 62 64 64 67 .79 77 78 80 Chapter 8 8.3 Online Banking Chapter 10 10.1 Financial Performance 9. 5 .3 Branding Image Chapter 9 9.7.2 Operating Performance 9.1 Recommendation & Conclusion Bibliography.76 71 73 74 75 77 .0 Findings of the Report 10.70 67 67 68-70 70 71 .2 Safe Deposit Locker 7.0 Customer Relation Management 8.

The study is critical in nature. It was conducted to investigate critically into the operations of AB Bank Ltd and it also explains that how ABBL provides facility of online banking to its customers. Technology has also increased importance for financial institution especially for private commerce banks. 5 . regulatory and technological factors. Since its inception in 1982. The report is a reflection on my experience when I was an internee in ABBL. ABBL has maintained a steady growth over the past twenty eight years span of its operations. Thus the competitions among them are increasing day by day and marketing of financial products is now becoming an important concern. including socio-economic. There are now 30 private commercial banks operating in Bangladesh and they are offering different products and services but there are few basic differences among them in terms of structure and performance. Changes to regulatory environment undoubtedly have had the greatest impact on this sector. A number of external forces have exerted influence on the sector.1 Background of the Study The financial service sector in Bangladesh is now quite competitive to deal with changing environment. Dhaka. The annual reports or the consolidation data of the Bank has not been focused in specific because it does not reflect the operational performance of branches. However .Chapter – 1 1. Principal Branch. they have been referred to as when and where required.0 Introduction of the report 1.

1. Dhaka in specific.2 Purpose of the Study General purpose • • • To get acquaintance with the general operations of ABBL. Principal Branch. To have a clear idea about the marketing strategies adopted by ABBL for different type of financial products Specific purpose Specific purpose of the study includes • To objectively observe the operations of AB Bank Ltd in general and the operations of ABBL. 5 . To know about different types of financial products offered by ABBL.

 Bank specific variable. Exploratory research provides insights into and comprehension of an issue or situation.3 Nature of the Study From this study it is evident that.• • To know about their bases for consumer segmentation. exploratory research often concludes that a perceived problem does not actually exist. It should draw definitive conclusions only with the extreme caution. Exploratory research is a type of research conducted because a problem has not been clearly defined. Given its fundamental natural. the research that has been conducted is exploratory in nature. 1. To know about their product differentiation strategy. 1.4 Scope of the Study The study covers two areas with its variables. data collection method and selection of subjects. which affects the operation of the branch directly or indirectly. These two areas of variables are  Branch specific variable. Exploratory research helps determine the best research design. 5 .

The branch specific variables are the variables under the control of the branch management and directly affect its operations e.  Services provided by ABBL. 5 . 1. To get primary data I also performed some practical work. which are not in control of the branch management e. I relied mainly on the primary data.  ATM Online banking. The tools used for the collection of primary data are interviews and observation.g.  Role of ABBL. The major sources of secondary data were the annual report 2008 & 2009.  History of ABBL.5 Methodology of the Report Data Sources Both primary and secondary data have been used in the completion of this report. The bank specific variables are those variables.  Departments in the branch.g.  Layout of the branch. The methodology used is as under:  During the completion of this report.  Customers’ relations.  The secondary data was mainly used for as a background material and for purpose of reference.

other printed material of the Bank and internet played a vital role as a source of secondary data. Many of the banks have been graded as top class banks in the country through internationally accepted CAMEL rating. They take it in turn to organize and host a visit to their organizations. • Demonstration of tools or systems.  Lack of published marketing information.  Lack of access to data. • Discussions around the presentations. The even consist of: • Presentations by managers. practices and ideas agree to hold a series of study visits.7 Literature Review The private commercial banks. as follow. The CAMEL model is based on the Uruguayan farmers’ model.up to inter-visit communications. generally on key themes and suggestions and ideas for future practice. 1. 1. They already made significant progress within a very short period of their existence. 5 . constantly focus on understanding and anticipating customer needs. Participants who have an interest for a particular topic and who wish to learn mor5e by sharing knowledge. systematic and factual.6 Limitations The study was subject to the following limitations the absence of which could have made this report more accurate. operating in Bangladesh.  Lack of back hand information with stuff. practitioners and partners outlining strategies and practices.

invest. Their satisfaction is AB’s success.volatility. These are issued by various banks. It is a process that can allow organizations to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. A marketing orientation requires the organization to view of its customers. Financial products refer to those instruments that to those instruments that help you save. the day itself and suggestions for themes of future visits and inter visits communications.• • Hands on sessions to enable actual experience. financial institutions. Most of the have already occupied enviable positions among their competitors after achieving success in all areas of business operations. positioning and marketing expenditure levels. This paper focus on marketing strategies of financial products of ABBL. A marketing strategy can be defined as the outlines of broad marketing logic by which the business units hopes to achieve its marketing objectives and the specific of target markets. stock brokerages. Risk and return. Private commercial banks are offering different financial products with different features. A marketing strategy should be centered on the key concept that customer satisfaction is the main goal. AB is recognized as the people’s choice. Review and evaluation of the practices discussed. They follow various strategies to market such products. Banking scenario undergoes changes time to time as this very dynamic industry. 5 . Understating customer and customer’s needs and requirements is the guiding philosophy of marketing. First of all it is important to know what marketing strategy is and what the financial products that AB bank usually offers are. Financial products are categorized in terms of their type or underlying asset class. insurance providers. credit and agencies and government sponsored entities. catering to the satisfaction of its cliental. get insurance or get a mortgage.

AB Bank Limited. 1982.Chapter -2 2. UAE incorporated in Bangladesh on 31st December 1981 and started its operation with effect from April 12. the first private sector bank under Joint Venture with Dubai Bank Limited.0 Background of AB Bank LTD. Dubai Bank Limited (name subsequently changed to Union Bank of the Middleast Limited) decided to off-load their investment in AB Bank Limited with a view to concentrate their activities in the UAE in early part of 1987 and in terms of Articles 23A and 23B of the 5 .

one foreign Branch in Mumbai.59 million respectively. which is precisely 26.Articles of Association of the Company and with the necessary approval of the relevant authorities. the Authorized Capital and the Equity (Paid up Capital and Reserve) of the Bank are BDT 2000 million and BDT 4511.e. the Bank has correspondent relationship with over 220 international banks of repute across 58 countries of the World. On account of Foreign Trade. 5 . Authorized Capital of the Bank has been increased to BDT 3000 million in the Extra Ordinary General Meeting held on July 16. To facilitate cross border trade and payment related services. 2008. As of December 31. India and also established a wholly owned Subsidiary Finance Company in Hong Kong in the name of AB International Finance Limited (ABBL 2010). the Bank made a significant headway in respect of import. On the Advance side. the bank acquired confidence and trust of the public and business houses by rendering high quality services in different areas of banking operations. the Bank has been able to achieve 30.85% higher than the preceding year. which places the Bank in the top tier of private sector commercial banks of the country. During the last 28 years.76% increase. Bangladeshi Sponsor Shareholders (ABBL 2010). professional competence and employment of the state of art technology. 2007. thereby raising a total portfolio to BDT 40915. Since beginning. the shares held by them in the Bank were sold and transferred to Group "A" Shareholders.35 million.35 million. the premier sector bank of the country is making headway with a mark of sustainable growth. export and inflow of foreign exchange remittances from abroad. AB Bank Limited has opened 77 Branches in different Business Centers of the country. AB Bank Limited. i. The overall performance indicates mark of improvement with Deposit reaching BDT 53375.

Foreign Trade Business handled was Tk 9. Male employees wear designed ties and females wear share or salwar kamiz. It continues to remain updated with the latest products and services. The Bank showed strong growth in loans and deposits. catering to the satis faction of its cliental. and trust. The bank decided to change its traditional color and logo to bring about a fresh approach in the financial world. The Bank’s consolidate profit after taxes amounted to taka 230 cores which is 21% higher than that of 2008.AB Bank is known as one of the leading bank of the country since its commencement 28 years ago. The credit Rating Agency of Bangladesh Limited (CRAB) awarded the Bank an A1 rating in the long term and ST-2 rating in the short term. The bank has developed its logo considering the contemporary time. AB Bank has continuously invests into its biggest asset. all the dresses are consisted with the unique AB Bank logo. Deposit of the Bank rose by Tk 1518 core i. an approach. across time.e. The Bank maintained its sound credit rating in 2009 to that of the previous year. In spite of adverse market condition. The new logo represents our cultural “Sheetal Pati” as it reflects the bonding with its clientele and fulfilling their every need. The logo of the bank is primarily “red” as red represents velocity of speed and purity. the human resources to drive forward with its mission “to be the performing in the country”.400 cores as at the end of 2008. Its new logo innovates.45% while the diversified loan portfolio grew by over 30% during the year and recorded a Tk 1579 cores increase. concluded the 2009 financial year with good results. The asset base of AB grew by 32% from 2008 to stand at over Tk 8. Thus the new spirit of AB is “Bonding”. which like its new logo is based on bonding. Their satis faction is AB’S success 5 .898 cores indicating a growth of over 40% 2009. The bank has introduced for its employees. 28. considering consumer and client perspectives. AB is recognized as the people’s choice. AB Bank has thus been able to keep their consumer’s and client’s trust while upholding their reliability. AB Bank Limited which turned 28 this year. AB Bank launched the new logo on its 25th anniversary year. bonding of affiliates that generate changes considering its customer demand.

1 Mission Statement: "To be the best performing bank in the country" 2. 1981 under the Companies Act.10 dated 22 November 2007. Prior to those Shareholders of the Bank approved the change of name in the Extra Ordinary General Meeting held on 04 September 2007 (ABBL 2010). 2. 1913 and listed in the Dhaka Stock Exchange Ltd and Chittagong Stock Exchange Ltd.4 Corporate Information of AB Bank Limited: Name of the Company AB Bank Ltd Legal Form: A public limited company incorporated on 31st December.3 Change of Name: Arab Bangladesh Bank Limited changed its name to AB Bank Limited (ABBL) with effect from 14 November 2007 Vide Bangladesh Bank MRPD Circular Letter No. New Logo of ABBL Effective 01 January 2008. ABBL changed its Logo as well.2 Vision Statement: "To be the trendsetter for innovative banking with excellence & perfection" 2. Commencement of Business 27th February 1982 5 .2.

In addition.5 Values:  Service Excellence  Openness  Trust  Commitment  Integrity  Responsible corporate citizen AB Bank Limited see their customers trust as the lifeline of their business.com.com. the order objectives are: 5 . Tel: +88-02-9560312 Fax: +88-02-9564122.abbank. Dilkusha C/A Dhaka 1000. dynamic and motivated people as their strength to multiply and technology as their weapon to service excellence.Registered Office BCIC Bhaban. 2. control and compliance as license to operate. 30-31. 23 SWIFT: ABBLBDDH E-mail: info@abbank.6 Objectives of AB Bank Limited: Maximization of profit along with the benefits of employees is the main objective of the bank.bd 2.bd Web: www. Bangladesh.

deep-rooted and firm banker-customer relationship by dispensing prompt and improved client’s service. asset quality and highest through successful implementation of the management core risk program (ABBL 2010). so that they get encouraged to continue and feel proud of banking with ABBL.  Ensuring maintenance of capital adequacy. 2.  Elevating the image of the Bank at home and abroad by sustained expansion of its activities. thereby arousing saving propensity among the people.  Ensuring highest use of the professional workforce through enhancement of their aptitude and competency. 5 . It started banking operations on 12 April 1982 as a scheduled private sector commercial bank. The issued and paid up capital was Tk 80 million.  Foreign a cordial. Initially the authorized capital of the bank was Tk 200 million divided into 2 million shares of Tk 100 each. thereby expanding the area of investment of the Bank. Bringing modern Banking facility to the doorstep of general public through diversification of banking services. The paid up capital was also enhanced at different times of its operation and stood at Tk 409.7 Historical Review of AB Bank Limited: AB Bank Limited (ABBL) a joint collaboration bank with Dubai Bank Limited. a group active in international trade.  Connecting clients to modern banking practice by the best application of improved information technology. finance and industry (ABBL 2010). It was formed in Dhaka on 31 December 1981. The authorized capital of the bank has later been enhanced to Tk 800 million.  Responding to the need of the time by participating in syndicated large loan financing with likeminded Bank’s of the country.94 million in December 2000. comfortable liquidity. ABBL is the first Arabian-Bangladeshi joint venture private commercial bank in Bangladesh and was formed with the assistance and support of the Dubai-based Galadari family.  Taking part in the development if the national economy through productive deployment of the Bank’s resources as well as patronizing different social activities.

16. ABBL was set up to conduct all types of traditional commercial banking functions including foreign exchange business and other financial services.56%). 354.84%). Responding to the needs of the market. The broad economic areas in which the bank lends (and the total outstanding amount of advances to those areas in million Taka) up to 31 March 2000 were: agriculture and fisheries (278).300 million.874). It has been able to achieve satisfactory progress in all areas of its planned activities including deposit mobilization. Dhaka. the total deposits of ABBL amounted to Tk. and others (1. and Monthly Interest Payment Facility to term deposit holders.4 million in 2000.548. rural-15 and overseas-1). credit expansion.472 employees. The deposit-mix of the bank in 2000 was composed of fixed deposits (56.81 million in 2000 as against Tk. Up to 31 March 2000. including poverty alleviation and income generating activity (520). The chief executive of the bank is its managing director. This stood at Tk. The bank has 62 branches (urban-46. 2. ABBL provided financial support in the form of loans and advances to 88 large and medium scale and 145 small and cottage industrial projects amounting to Tk. The Head Office of the bank is located at Dilkusha. 1.5 million on 31 December 2000. ABBL introduced three new schemes: Student Loan. special credit programmers. transport/communication and storage (180).6%). servicing imports and exports. It has also extended project financing in 5 .384).Nine numbers of boards of directors including the chairman governs the overall affairs of the bank. and current and other deposits (21. remittance services. the first year of the banking business. including the executives and officers. 136. savings deposits (21. Personal Computer Loan for Educational Institutions (for their laboratories).217. 202.811). investment. The amount of total reserve funds of ABBL was Tk. retail/wholesale trade and hotels and restaurants (3. industry (2. real estate and trade service (1. Total loans and advances of ABBL increased from Tk 116. and product innovation.769).71 million. work in the bank in various capacities. At the end of 1982.96 million in 1982 to Tk 12. insurance. In all.48 million in 1995.

11. However. 2. the bank's total classified loans were 23.76 million respectively. 93% was in government treasury bills. In that year. The bank has two foreign representative offices . the General Public Shareholders hold 49. ordinary shares of companies and prize bonds. 2006. In 2000.one in London and the other in Yangon. 170.33%). India. The Sponsor-Shareholders hold 50% of the Share Capital. ABBL has foreign correspondent relationships with 221 banks/bank offices and other financial institutions at different international financial centers. During the last 27 years. 23 million in 1982. the AB International Finance Limited in Hong Kong. The ratio of advances and deposits during the year 1999 and 2000 were 80.66% and 77. the Authorized Capital and the Equity (Paid up Capital and Reserve) of the Bank are BDT 2000 million and BDT 2582. total foreign exchange business of the bank was Tk. the bank earned an income of Tk. The overseas operations of the bank are conducted through its Mumbai branch in India and its subsidiary company.435. As of December 31. To 5 .57% Shares are held by the Government of the People's Republic of Bangladesh (Annual Report 2008).45% of its total loans and advances.38% respectively (ABBL 2010). exports (58. which included imports (34.43% and the rest 0. AB Bank Limited has opened 74 Branches in different Business Centers of the country.21 million from its investments. The quantum of investment of the bank rose to Tk.429. It maintained a provision of Tk.600 million. two Representative Offices in London and Yangon. no individual sponsor share holder of AB Bank holds more than 10% of its total shares. one foreign Branch in Mumbai. Of the total investment in 2000. The rest was invested in other sectors including debentures of ICB.48%).19%) and remittances (7.66 million in 2000 from Tk. 1.syndication with other banks.4 million for them. which affected the bank's performance and degraded the quality of its lending assets. Myanmar respectively and also established a wholly owned Subsidiary Finance Company in Hong Kong in the name of AB International Finance Limited. In the financial year ending on 30 June 2000.

the responsibilities and functions of those branches have been reduced dramatically. The existing Board of director is 14. Wahidul Haque is the chairman of board and Kaiser A.facilitate cross border trade and payment related services.8 Current Profile of AB Bank Limited: Since beginning. trade services activities etc. At present. monitoring of loans. the bank has 74 branches throughout the country with about 18000 employees. 2. M. Under this arrangement. Chowdhury is the President and Managing Director. The branches of the bank are now termed as the “sales and service Centers” which are solely concentrated on delivering services to the corporate and consumer clients and maintain relationship with them. Many of the activities like credit evaluation and approval. professional competence and employment of the state of art technology (Annual report 2008). the bank acquired confidence and trust of the public and business houses by rendering high quality services in different areas of banking operations. 5 . the Bank has correspondent relationship with over 220 international banks of repute across 58 countries of the world. The bank has been restructured their five main business which are responsible for earning the revenues of the bank. are now centralized in the Head Office. These are:  Corporate Banking  Consumer Banking  SME Banking  Treasury and  Cards All other department of the bank acts as support for these units and helps them in every possible way.

AB Bank Limited, the premier sector bank of the country is making headway with a mark of sustainable growth. The overall performance indicates mark of improvement with Deposit reaching BDT 42076.99 million, which is precisely 53.78% higher than the preceding year. On the Advance side, the Bank has been able to achieve 46.32% increase, thereby raising a total portfolio to BDT 31289.25 million, which places the Bank in the top tier of private sector commercial banks of the country (Annual report 2008). On account of Foreign Trade, the Bank made a significant headway in respect of import, export and inflow of foreign exchange remittances from abroad.

Since beginning, the bank acquired confidence and trust of the public and business houses by rendering high quality services in different areas of banking operations, professional competence and employment of the state of art technology (Annual report 2008). At present, the bank has 74 branches throughout the country with about 18000 employees. The existing Board of director is 14. M. Wahidul Haque is the chairman of board and Kaiser A. Chowdhury is the President and Managing Director. The bank has been restructured their five main business which are responsible for earning the revenues of the bank. These are:

 Corporate Banking  Consumer Banking  SME Banking  Treasury and  Cards

All other department of the bank acts as support for these units and helps them in every possible way. Under this arrangement, the responsibilities and functions of those branches have been reduced dramatically. Many of the activities like credit evaluation and approval, monitoring of loans, trade services activities etc. are now centralized in the Head Office. The branches of the bank are now termed as the “sales and service Centers” which are solely concentrated on delivering services to the corporate and consumer clients and maintain relationship with them.

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AB Bank Limited, the premier sector bank of the country is making headway with a mark of sustainable growth. The overall performance indicates mark of improvement with Deposit reaching BDT 42076.99 million, which is precisely 53.78% higher than the preceding year. On the Advance side, the Bank has been able to achieve 46.32% increase, thereby raising a total portfolio to BDT 31289.25 million, which places the Bank in the top tier of private sector commercial banks of the country (Annual report 2008).

On account of Foreign Trade, the Bank made a significant headway in respect of import, export and inflow of foreign exchange remittances from abroad.

2.9 Management Aspects: The AB Bank Limited Management Team comprises of a group of people and each them comes with an international working background and is committed in leveraging their experience to take ABBL to greater heights by ensuring top line revenues with dynamic capabilities. This Management Team is unique in being able to envision the need of the business by bringing in admixture of advanced technology solutions know-how and revamping the organizational make-up for maximum profitability. Other than the President and Managing Director, the remaining Management Team Members each lead a functional Department.

This mix of people is persistent to provide unparallel services to its customers, come up with timely and innovative products and services and to enhance the capabilities of its people of its people while emphasizing on the latest technology. This they believe will take the bank to a foremost position in the country by the turn of the year 2008. This team is to drive the business to maximize the operational excellence and efficiency through acquisition of talent, developing systems, processes and people and through blending of these to let customers revel in with fulfillment and permanency (Annual report 2008).

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Like any other business organization, all the major decisions in ABBL are made by the top management committee. The board mainly establishes the objectives and policies of the bank. There are three committees of the board for different purpose.

2.9.1 Executive Committee: This committee is comprised of Chairman, four members of the bank and one member secretary. The functional and responsibilities of this committee is to establish and periodically review the bank’s overall credit and lending policies and procedures, development and implement uniform and minimum acceptable credit standards for the bank, new credit proposal assessment and approval etc.

2.9.2 Audit Committee: The main objective of this committee is to assist Board of Directors with regard to the audit of financial reports, management reports by the external auditors, internal controls and internal audits. ABBL have four members in audit committee.

2.9.3 Management Committee: The main objective of this committee is to ensure business operations are in line with the Bank’s policies, strategies and objectives, the bank has set up. This committee consists of the Managing Director, Deputy Managing Director and different business unit heads (ABBL 2010). The honorable members are:

2.10 Management Hierarchy of AB Bank Limited:
Chairman

Board of Directors

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Management Director Deputy Managing Director Senior Executive Vice President Executive Vice President Senior Vice President Vice President Senior Assistant Vice President Assistant Vice President Senior Principal Officer Principal Officer Management Trainee (Entry Level) Senior Officer Officer 5 .

The hierarchy has president and directors at top management level and officer Grade 1. President and CEO Regional General Board of Directors Head Departments Office G-1. These positions are not fixed. of 2 and other lower staff Branch Manager Manager Controllers of Operations 5 . The middle level management consists of regional general Manager and Regional controller of operations. 2 and Grade 3 at the lower level management of ABBL. Any person of the hierarchy above the branch manager can be appointed as RGM and Controller Operations.11 Functional Hierarchy The functional hierarchy represents the reporting order in the hierarchy of ABBL.Trainee Officer (Entry Level) Contractual Officer (Entry Level 2.

2. In some general banking activities. General banking is the starting point of all the banking operations. It provides those customers who come frequently and those customers who come on time in banking for enjoying ancillary services. Banks perform this function in two ways – taking deposits from various areas in different forms and lending that accumulated amount of money to the potential investors in other different forms. General banking department aids in taking deposits and simultaneously provides some ancillaries services.12 General Banking Financial institution that mediates or stands between ultimate borrowers and ultimate lenders is known as banking financial institution. there is no 5 .

 T.T issue/ collection  Endorsement  IBC / OBC Collection. General Banking consists of the many sections in the branch.  Remittance  Payment Order issue. issue bank drafts and pay orders etc. demit funds. Since bank is confined to provide the service everyday general banking is also known as retail banking.  Deposit Department 5 . It opens new accounts.  Account opening / closing. One the other hand. It is the department. These are  Customer service. which provides day to day services to the customers. there are some customers with who banks are doing it business frequently.relation between banker and customer who will take only one service from bank. Every day it receives deposits from the customers and meets their demand for cash by honoring cheques.  Demand Draft issue / collection.

 Clearing  Transfer.  Account’s Department.  Cash. 5 . Locker Service.

It’s a nice department for learning different types of banking material like different types of account. their requirement. about the cheque books and I also have to handle the customers who usually come to open account. I have found some study when I did my internship in accounts opening department. Mainly I have to do these task in my internship period.3 My Job Part I did my internship in accounts opening department of Principal branch of AB BANK LIMITED. receive the cheque books and who come to update their information in the customer database.  Receiving cheque books arrange them and give it to the right person. to give cheque book requisition. 5 . they are  Opening account  Giving requisition for cheque books. scanning customer signature card. It had been a great experience to do my internship in such a important department of Principal branch of AB BANK Limited.Chapter. and their benefit to the customers.  Scan the signature card..

some wants to open current account and some wants to open FC or foreign currency account. Opening of current account requires proper introduction. Some people wants to open savings account. through a forwarding memo as per prescribed format retaining an office copy for reference. Statement of account is to be dispatched to the account holder on monthly basis or as may be requested by the customer. New current account must be opened with a cheque only but there must be some initial cash deposit.  Customer service. People have different purpose for open an account. A minimum balance as prescribed by the Head office must always be maintained for this type of account. Current Account: This type of account is opened by both individuals and business concerns including non-profit making organizations. Updating legacy accounts. Frequent transactions (both deposits and withdrawals) are allowed in this type of account. Now I will describe about different types of account that AB bank offers 1. No interest is allowed on current account. Different types of account needs different types of papers. Opening Account: Opening account is the core job responsibility for account opening department. The Bank offers the following types of accounts to its various types of customers: i) ii) iii) iv) Current Account Savings Bank Account Special Notice Time Deposit (STD) Fc (Foreign Currency) Account. A current account holder can draw cheques on his account for any amount and for any number of limos in a day as the balance available in the account permits. Current account holders have pay taka 1500 per year as a charge. This type of account need some papers for opening a current account like if it is opened by person then he or she has to submit 5 .

Limited company current account need photocopy of their trade license. a depositor can withdraw from his SB account not more than twice in a week up to an amount not exceeding 25% of the balance in a week up to an amount not exceeding 25% of the balance in the account. Savings Bank Accounts: This is a type of account opened by individuals for saving purposes depositing amounts over a period of time. In case withdrawals are made violating the aforesaid prescribed limits.per week. From 12 etc. no interest is to be paid on such account for that month in which the default took place. A penalty is also charged to the customer at the discretion of the Manager. Savings Bank Account also requires proper introduction. Statement of account is to be dispatched to the account holder on quarterly basis or as may be requested by the customer. TIN certificate. Every person has to fill the account form and the ETP (EXPECTED TRANSACTION PROFILE) form by which they measure how much money the person will transect.his or her one copy of the photocopy of his or her national id card or passport and one copy of photocopy of his or her TIN certificate . Savings bank account can be joint. A minimum balance as mayo be prescribed by the Head Office from time to time is required to be maintained in a SB account. A maximum balance of SB account on which interest is payable is fixed by Head Office from time to time. 10. These saving s bank account rules are subject to changes from time to time. prescribed incidental charge is to be realized every half year if the balance comes down the required minimum balance. A prior notice for 7 days is required to be given for withdrawing money in excess of the aforesaid limit. This type of account earns interest at a prescribed rate. A person needs either one copy of his photocopy of national ID card or photocopy of passport. As per existing rules. 5 . No new account can be opened with a cheque only but there must be some initial cash deposits. subject to a maximum of Tk. Deposits are made through deposit slips and withdrawals are made through printed cheques supplied while opening the account. each time a cheque is returned unpaid for want of founds in the account. Interest on SB account shall be calculated & accrued monthly on the basis of guidelines issued by Head Office from time to time and credited to the account half-yearly in June and December each year.000/.

The certificate is transferable by delivery alone and does into require any endorsement.): Short term deposits account is one type of current account. Interest on S. photocopy of national identity card and also the photocopy of passport and national ID card of nominee. Premature encashment of BCD is not permissible. No credit facility should also allowed against the security of Bearer Certificate of Deposits Foreign currency Account or FC account: FC account or foreign currency account mainly opened by the people who are working in foreign country.D should be paid as per instruction issued by Head Office from time to time. Customers have to deposite 500 us doller for open a fc account in AB Bank Limited After getting the information from customers from I had to put it on the system an after getting all the information system delivers the account number of the customer. but in no case interest should be allowed exceeding the prescribed rates applicable for Fixed Deposit of different tenor.D.T. not even the depositor’s name. The difference between the face value of the Certification of Deposits and the prepared interest will be received by the Bank from the purchaser of BCDs at the time of issue. The Bank will not ask any question. Fc account cannot be joint. certificate number. Based on demand and supply of funds in the money market.Short Term Deposits (S. For opening a FC account customers have to submit their work permit license.T. Then I had to fill a form which is known as KYC (Know Your Customer) form and approve the account from the operation manager. rate of interest. Withdrawals from this type of account require a prior notice varying from 7 to 29 days and 30 days or more. trade license if they have and the photocopy of their passport. No record will be kept in the Bank other than the amount. 5 . date of sale and date of encashment. It has to be a single account holder’s name. They have to select their nominee who is permitted to run the account instead of him or her. without obtaining prior approval of Head Office.

50 as Vat for 20 pages cheque books and and taka 75 as commission and taka 11. I usually sent the request to the third party by internet and by the requisition software. check the signature from requisition paper and then give posting the serioul number of cheque books to the system. Updating legacy accounts: Bangladesh Bank has announced to update previous accounts which were opened from the beginning to 2006. I have to verify the signature from teller and then give requisition to the third party. AB provides the MICR cheque within three working days after the requision of cheque books.25 for 50 pages cheque books. I had to inform the legacy account holder for updating their accounts and after getting the information 5 . Scan the signature card: Customers have to fill a form to open an account. So it is about 4500 accounts which AB bank considered as a legacy accounts. Receiving cheque books arrange them and give it to the right person: After three days of requisition of cheque books the third party or contracted printing firm send the cheque books to the respective branches. Then it goes to the locker of cheque books according to its account number. Accounts opening department has to scan the card for identify or verify the customer and their signatures. They also have to give two signatures on that signature card where a passport size photo of the account holder is attached with that card. In this case AB bank goes with a contractual agreement with the third party who makes MICR cheque books for AB bank and the requisition for this MICR cheque book is given from accounts open department. After scanning the card it will go to cash or operations department for the same purpose indentify and verify the signature of customers. So AB bank has to give MICR cheque books to their customer. When customer comes to get their cheque books I have to collect their signature on to the register copy. For saving account 20 pages cheque book is available and for the current account 50 pages cheque book is available for the customer. cheque the requisition list with the provided cheque books. I have to collect the cheque books from them. AB bank was started their journey from 1988.Giving requisition for cheque books: Bangladesh Bank has declared to give MICR cheque books to customer which is machine readable. AB bank charges taka 30 as commission and taka 4. Then I give entry the name of cheque books into a register book.

So I got much opportunity to learn different banking activities by doing my internship in the Principal Branch of AB bank Ltd. helped them to understand why their account is closed. Then I putted the new information in the database of customers and filled it properly. Chapter -4 4. helped them to fill up the account opening form.or required papers we filled the KYC (Know Your Customer) form of those accountholders. provided the information about the rate of interest and charge of different accounts. Customer service: I also had to give some customer service like giving balance. This is called the main branch of AB Bank.0Introduction of The Departments 4.2 Current Saving Department 5 .1ABBL Principal Branch (Branch Code -4005) I did my internship of twelve weeks in ABBL Prince Branch (4005) from 01-03-2010 to 3005-10. 4. This is also the biggest branch of AB Bank Ltd.

5 . First of all a cheque holder have to present his / her cheque to the person responsible for issuing the tokens. Then these vouchers are recorded in the computer.In ABBL Principal Branch current saving departments mainly deals with cheques. Daily Transactions To record all the transactions of deposits made by the people and also to record all the withdrawals made by the people or customers. Then cheque is passed on to the operator to entry it in computer. Advices To record all advices received from other branches most of the inter branch or intra branch remittances are subject to ultimate receipt of advices from the corresponding branch to materialize the transaction. Vouchers To record all the vouchers made by the remittance department. 1. Remittance department have to prepare debit and credit vouchers for about every transaction recorded in their department. vouchers and advices. Each transaction has to be the recorded in its appropriate head of account with the help of described codes. These advices also have to be recorded in computer. Computer Operations In ABBL Principal Branch al the operations are recorded in the computer that are as under. Afterward it will go far signature verification after which it will be given to cashier for payment. 4. Statements To close the daily record a number of statements have to be the printed out. 3. Like  Everyday’s transaction (sequence )  Overdrawn facilitated a/c. 2.

The bank may therefore use deposits. it becomes the owner of it. These deposits are lend-out to different parties larger the difference between the rate at which these deposits are borrowed and the rate at which they lend out.3 Account Department Deposits are the Life Blood of A bank. Statements markup sheet. Borrowing funds from outside parties is more important because the entire banking system is based on it. Types of Account 5 . When the bank receives the amount of depositors as a depositor. The greater rate will be the profit margin of the bank. 4. It is because of this interrelated relationship. But there is an implicit agreement that the amount owned by the bank will be paid back to the depositors on demand or after a specified period of time. Deposits are referred to as the “life blood small” for any banking sector. transferred. Dormant.  Detail of PLS and current a/c  Day’s transaction ( a/c wise)  Operative.  Inter branch transactions. credits & balances)  Profit due. Bank’s borrowing is mostly in the form of deposits. Larger the funds lend out the greater will be the return earn on them and greater the amount of return on these earned greater will be the profit of the bank. as it deems appropriate. Inoperative and Unclaimed a/c  Summary of al a/c ( debits. Commercial banks do not receive these deposits for safekeeping purpose only. The borrowed capital of the bank is than the bank of own capital. Receiving of deposits is basic function of all commercial banks. disbursed etc.

Hence. Fixed deposits: Fixed deposit is one.00% • • Proprietorship Account. it is popularly 5 . These deposits are not repayable on demand but they are withdrawing able subject to period of notice. which is repayable after the expiry of a pre determined period fixed by him. The period varies from 1 month to 12 months.00% • • • • Individual Account Joint Account Proprietor ship Account. Limited Company Account. Savings Deposit: Interest Rate 6.00% • • Individual Account Joint Account Short Term Deposit: Interest Rate 5. Limited Company Account. General Products are : Current deposit: Interest Rate 0.

25 % 4. In case of encashment of FDR in maturity. Before opening a fixed deposit account a customer has to fill up an application from which contains the followings: In case of fixed deposit account the bank needs to maintain a cash reserve. 5 . 6 months and above but less than 12 months 11.Cr.Dr FDR A/C…………………………………………Dr Cash A/C…………………………………………Cr Interest on FDR…………………………………. 1 Months and above but less than 3 months : 8.Cr If the customer wants to draw the interest rate only.00% 3. 3 months and above but less than 6 months 11.75% The FDR becomes renewed automatically in ABBL if the customer does not encash it within 7 days of maturity.50% 2.. The interest rates followed by ABBL fixed deposit accounts are: Interest Rate: 1. So ABBL offers a high interest rate in fixed deposit accounts.Dr Income Tax on interest…………………………. then following entries are givcn: Interest on FDR A/C……………………………Dr..known as “Time Deposit “or “Time Liabilities”. 12 months and above : 11. following accounting treatments are given Excise Duty on FDR………………………………. Normally the money on a fixed deposit is not repayable before the expiry of a fixed period. Cash A/C……………………………………….

 Purpose Principals: The purpose of the advances should be legitimate and productive. The security should be considered a safety for the bank only in case of unexpected 5 .  Liquidity Principals: The money which has been lended to the borrower should be returned to the bank on demand or as repayment schedule provided by the client.  Security Principal: The proposal should be dealt on its merit not on security.  Profitability Principals: The end result of every business activity should be to earn some profit. Similarly the bank must get some profit out of the activity of lending money. It should be ensured that the banks. The borrower should not invest the borrowed money in unproductive or speculative business. funds are not being utilized for speculative business. 4.4 Credit Department Lending Principals The basic function of the bank is to accept deposit and lend money to the borrower against a spread so to be able to give some profit to the depositors as well as to earn profit for the bank. It is always beneficial for the bank to finance for short time requirements. So that the depositors could get their shares as well as the shareholders could earn something from their investment. While lending money to the borrower the bank should observe the following lending principals:  Safety Principals: It means that the lend money will come back along with interest or service charges etc.In case of “Before Maturity Encashment” interest is calculated for the days from the date of opening the FDR account. The sources of repayments should be clear and definite. The credit restrictions by the central bank should not be violated & it should be ensured also.

emergencies. All the relevant documents of securities must be obtained & got valuation of the property or any other security should be assessed correctly.

 Spreading of Risk Principals: It is always safe for the bank to spread the risk in large number of borrower instead of loaning huge amount to few big shots. It is better to obtain different types of securities instead of concentrating on one security.

 National Interest and Suitability Principal: It is our moral as well as legal obligation to ensure that no loaning is running counter to national interest. It is our duty to ensure that our lending policies are not against the social conditions or bindings.

Functions of Credit Department The main function of the credit department is to lend money to the customer. AB Bank Ltd. Lends money in the form of clean advances against promissory notes as well as secured advances against tangible and marketable securities. Beside these ABBL also lend money against life policies and immovable property. LIEN Lien is the bank right to with hold property until the claim on the party is paid. The bank looks at their liens as protection against loss or overdraft or any other credit facility. In ordinary lien the borrower remains the owner of the property, but the actual or constructive possession remains with the creditor or bank though the borrower has no right to sell it.
 By Cash Credit: In this the bank lends money to the borrower against tangible security.

The total amount of loan is not paid in one installment. The borrower has to pay the markup on the amount borrowed. Cash credit is favorite loan for large commercial and industrial concern.  By Overdraft: This is the most common type of bank lending. When a borrower requires temporary accommodation, ABBL allows its customer to withdraw an excess of the balance from their account which is borrowing customers have in credit and thus called overdraft. This facility is given to regular, reliable and well established customer. When it

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is against collateral securities, it is called “ Secured Overdraft” & when borrowing customer can not get the offer of any collateral security except his or her personal security then the accommodation is called “ Clean Overdraft” Types of Finance  Short Term Finance

AB Bank Ltd. receives the saving of the people and lends it for short term to its customer. Short term finance is generally given for a period of one year or less in duration.

 Medium Term Finance

The duration range of the intermediary term finance is from one year to three years. It is called the term loan. Intermediary term finance is usually given for the expansion of an existing business or for the purchase of new equipments.

 Long Term Finance

This type of finance is required for the period of more than five years. Long term finance is generally given for the compilation of big projects, for the construction of business and for the purchase of machineries.

Procedure of Applying For Loan Any customer who applies for loan should have an account (usually current account) with ABBL branch concerned. That account must be in running position. When approval from

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head office is given, branch gives term & condition to the party. Bank does not advance 100% loan against a security, rather the profit margin is different in different types of loan.

4.5 Remittance Department Another important department in ABBL is Remittance department. The remittances department transfers the funds from one bank to another bank and from one place to another place. In remittance department the collection take place. ABBL made payment of only open cheques on the counter and prohibits the payment of cross cheques. ABBL transfers money from one place to another by the following means:

 Mail Transfer

When a customer requests the bank to transfer his money from this bank to any other bank or the branch of the same other bank, the first he has to do is to fill an application form. If the customer is not the account holder of this bank, then firstly he has to deposit the money and then above procedure will be adopted to transfer his money. Different banks and different branches give mail to transfer the money.

 Telegraphic Transfer

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drawn upon and payable by the same branch of the bank. The following are the parties to a pay order:  Purchase is a person. The sender deposits the money to be transferred plus bank charges at the bank counter. ABBL has introduced the fastest transfer of money. It is neither transferable nor negotiable and such as it is payable to the payee named there in. company or local authority.  Issuing/ paying branch is one which issues/pays on presentation. It is issued by. The sender is required to apply through a form in which he will give all the necessary details about the sender and beneficiary.  Pay Order Pay order is the most convenient simple and secure way of transfer money.  Demand Draft 5 .With the changing requirement of the customer. firm. The remittances officials send a telegram to concerned branch with a specified code words and the receiving branch makes payment to the beneficiary. no excuse duty is charged only commission and telegram charges are charged.  Payee is a person named there in. On TT. Vouchers are sent by ordinary mail to keep the record.

There are two basic functions performed by the cash department. from where he is given a receipt and accordance with this receipt he is issued. Unlike pay order. 4. The following are the main essential of the draft:  It is a negotiable instrument.  Filling a form and depositing the amount written about on it.6 Cash Department This is the most important and critical department in a bank.Demand draft is another way of transfer money from one bank to another bank. a form is required to be filled for the issuance of the demand draft in which necessary particulars about the beneficiary and sender are given. These are  Receipts An individual who has account in the bank can deposit money in his account. For deposit of the money the individual has to fill the deposit slip in which the account holder writes his 5 .  It is a written order to its branches or to another bank to pay the stated amount on draft. The sender deposits the amount of DD plus commission and other charges on the bank counter.

First of all the customer presents his cheque to the cashier. account number. which is to be drawn. Bill collection is also one of the main functions of bank. 5 . 4. The cashier also record the deposits made by the customer in credit sheets daily. This is called outward clearing. After filling the deposit slip the cash amount along with the deposit slip is submitted to the cashier. These cheque will be entered in the outward clearing register and the advices is sent for the clearance of cheques. When they sent OBC the OBC is credited & the OBR is debited and the advice is made on that time. At the same time the clearing process starts. if the account holder of ABBL receives the cheque of other bank like City Bank. Prime Bank etc and he submits it in ABBL branch then it needs to be cashed. Some cheque is drawn on ABBL. The cashier collects the cash and counts it after verification the cashier stamps the deposit slip. Then account holder account is credited. the passing officer signs the cheque and sent it to the cash counter then the cashier pays the written amount to the customer and then in the end cashier records the amount paid in computer. a copy of which is to be sent to the corresponding organization.name. OUTWARD BILL FOR COLLECTION OBC means the cheque of other banks. When they realized the opposite entry is made it is entered in the OBC register. One part of the deposit slip remains with the bank for the record purposes.  Payments The procedure of clearance of a cheque or payments is as following. The deposits of all customer of the bank are controlled by mean of ledger account and has separate ledger cards in which his /her total record is kept. amount of money both in figures and in words. If the computer passes the cheque. Cashier has to prepare a list of bills’ serial number. one copy is remain in the bank and the other copy is sent to the related branch. When the cheque is cleared then the today stamp is required. The income a/c commission is credited and postage.7 Clearing Department In clearing process. Then the cashier check the cheque number in the computer for the verification whether the account has such amount is his account which he is demanding or not. The cashier records the account number and the amount.

Chapter -5 5 .

 How to use branding to differentiate the product from the range. Architects. NGOS. Government Employees. Engineers. Businessman) 5 . Self Employed professionals ( Doctors. Chartered Accountants.  How to implement the withdrawal process with minimal adverse effects for the banks as well as the customer. 5. it enables ABBL to generate income and it can provide a tangible indication of the strategies direction of ABBL Thus ABBL has become increasingly concerned with a number of issues surrounding product strategy. Private Universities Schools and Colleges. MNCS. As such it is vital component of the marketing mix. including  The process and procedure involved in the development of new financial services and products.0 Financial Product Offered By ABBL The product is usually the basis on which customer satisfaction is created.1 Retail Banking Unsecured Loans Product Name Target Customer Personal Loan Employees of reputed Local Corporate.5. International Aid Agencies and UN bodies.  The factors which contribute towards the successful adoption of new product.  How to manage the product over its life to perfect it from competition. The product provides the basis for competition. Airlines.

00 Processing Fee: 1% on the approved loan amount or TK 5000. For Recondition Car: Max 36 months For Brand new car: Months.a-17.50% p. International Aid Agencies and UN bodies. NGOS. Chartered Accountants.00 Application fee Tk 500.a Hypothecation of the product to be purchased. non registered reconditioned vehicle. To purchase Brand new vehicle. Two personal guarantees ( as per our list of eligible guarantors) Tenor Rate of Interest Security Product Name Target customer Auto Loan Employees of reputed Local Corporate. Engineers. 14.Loan Amount Charges Minimum TK 25. Self Employed professionals ( Doctors.50p. Government Employees. Two personal guarantees (as per list of eligible guarantors) Charges Tenor Rate of Interest Security 5 .a Hypothecation of the vehicle to be purchased.00.00 whichever is higher.00 Application Fee : TK 500.000.00 Processing fee: 1% on the approved loan amount or TK 2000. Private Universities Schools and Colleges. Purpose Loan Amount 70% for the brand new car 60% for the reconditioned car but must not exceed BDT 10. Businessman.00 whichever is higher. Architects.000.00.000. MNCS.50% p. Airlines.00 Maximum TK 5. Min 12 months Max 36 months 14.a-17.50% p.

Airlines.00 Application fee TK 500. purchase of miscellaneous household appliances. International Aid Agencies and UN bodies. purchase of furniture. reputed and highly respectable 5 . Minimum TK 50. Schools and Colleges. Employees of reputed banks & Leasing companies. Private Universities. self employed professionals. NGOs. purchase of office equipments/ accessories.. admission / education fee of children etc. Processing fee TK 1% on the approved loan amount or TK 1000.video equipment. reputed local corporate.00. purchase of personal computers. advance rental payment.a Letter of confirmation from the employer.000. trips abroad.00 whichever is higher Min 12 months Max 36 months 16.00 Maximum TK 3.00p. purchase of audio.000. Marriages in the family. Government employees. One personal guarantee (as per list of eligible guarantors) Purpose Loan Amount Charges Tenor Rate of Interest Security Product Name Target Customer House /Office Furnishing/ Renovation loan Expatriate Bangladeshi Nationals who are in business or service holders. MNCs.Product Name Target Customer Easy Loan ( For Executives) The loan is specially designed for salaried people who are employed in different reputed companies.

Loan Amount Charges Tenor Rate of Interest Security Product Name Target Customer Gold Grace – Jewelery Loan Both female and employees of reputed banks & Leasing companies.000.00 whichever is higher.00. reputed local corporate.00. Minimum TK 50.00 Max TK 10. self employed professionals.000.NGOs. Min 12 months Max 48 months 16.00 whichever is Purpose Loan Amount Charges 5 .00 Application fee TK 500.Purpose businessman with a reliable source of income. Registered mortgaged of the property if the loan amount is more than Tk 5. “Two personal guarantees ( as per our list of eligible guarantors). Government employees.00 Processing account fee: 1% on the approved loan amount or TK 1000.00.000. wooden cabinets. for interior decoration/ electrical fittings. Min TK 1. Airlines. MNCs .a Title deed of the House/Office to be furnished/ renovated along with memorandum of deposit of title deed duly supported by a notarized power of attorney to be kept by the bank as a matter of comfort. reputed and highly respectable businessman with a reliable source of income.000.00 Maximum TK 3.50p.00 lac. purchase / furnishing of apartments etc. To purchase ornaments/ jewellery for personal use.00 Processing fee 1% on the approved loan amount or TK 2000.00 Application fee TK 500. House / office furnishing/ renovation.

Students criteria • Students of reputed educational institute. Occupation : Student Minimum age : 17 years degrees (Chartered MBM. FCPS ETC. Product Name Target customer Purpose Staff Loan All permanent employees of AB bank. Cost& management (CMA). Accountants (CA). Personal guarantee from the parents and spouse.. Marriages in the family purchase of miscellaneous household appliances purchase of personal computer purchase of audio-video Loan Amount Charges Tenor Rate of Interest Security equipment purchase of furniture. • • Undergraduate & Post graduate level. Min 12 months Max 36 months Rate of Interest Security 16. According to the debt burden ration and other criteria Processing fees 1% on the approved loan amount.Tenor higher. Marine. Professional Accountants MBA). Hypothecation of the product to be purchased. Product Name Target customer Education loan. Min 12 months Max 36 months 15.50p. medical colleges & engineering institute. • • • Doctorate degree (PhD).a Letter of confirmation from the employer. 5 .a.00p. such as public & private universities.

000 Min 12 months Max 36 months 14.00.• • Maximum age : 40 years Educational Qualification: Minimum HSC / A – Level Pass.a -16. Semester fees.000. Minimum TK 50. AVP/ Branch Manager of Local and Foreign Banks) and Department Head of Multinational Company or established Local Corporate. Businessman : • Purpose Loan Amount Charges Tenor Rate of Interest Security Well reputed and widely respected self employed professionals. Maximum 95% of the present value of the security 5 .505p. Parents Criteria: Service holder: • Individuals with ranks equivalent to Senior Assistant Secretary or higher qualify guarantor.000.00 Maximum TK 3. Study abroad.00%p.) Secured Loans Product Name Target Customer Purpose Loan Amount Personal Loan All clients of ABBL. To meet personal requirement of fund. • Banks officials (Equivalent to Senior Principal Officer of NCBs. Guarantors must be accepted by the Branch Manager/ Head office.a One personal guarantee (as per list of eligible guarantors. To financially assist the parents: Admission/ Education fees.

RFCD.50%p. Lien over FDR. 2% spread must be maintained in case of own bank FDR.16. Lien over FDR.50p.50p.a (subject to type of the security).BSP. Maximum 95% of the present value of the security Processing fees TK 1000. 2 % spread must be maintained in case of own bank FDR.50%p.ICB Security Unit. RFCD.ICB Security Unit.Charges Tenor Rate of Interest Processing fee: TK 1000.a. To meet personal requirement of fund.NFCD.a (subject to type of the security). Maximum 95% of the present value of the security Processing fee: TK 1000. one personal 5 . Maximum 36 months 13.a (subject to type of the security). one personal guarantee in case of third party cash collateral (as per list of eligible guarantors) Product Name Target Customer Purpose Loan Amount Charges Tenor Rate of Interest Personal Overdraft All clients of ABBL To meet personal requirement of fund. one personal guarantee in case of third party cash collateral (as per list of eligible guarantors) Product Name Target Customer Purpose Loan Amount Charges Tenor Rate of Interest Personal Loan All clients of ABBL.BSP.00 Min 12 months. RFCD. Lien over Security FDR.CD accounts etc.50%p.CD accounts etc.BSP.NFCD.50%p.CD accounts etc.00 Revolving with annual review 13.NFCD. Maximum 36 months 13.ICB Unit.a -16.a -16. 2 % spread must be maintained in case of own bank FDR.00 Min 12 months.

 Cash Management. management teams and corporate. modern and technologies. They aim to provide tailored financing solutions with a dedicated team who can rapidly respond to client needs Following are some of the products and financial tools of Corporate Banking:  Project Finance. Structured Finance AB Bank has a specialist Structured Finance Team who arrange and underwrite finance solutions including Debt and Equity Syndication for financial sponsors. the customers need to contact to the Corporate Head Office. 5 . They also provide corporate advisory services.  Syndicated Finance. For more information as to how they might best meet customers corporate debt needs. Corporate Lending The specialist teams offer a comprehensive service providing finance to large and medium sized business based in Bangladesh.guarantee in case of third party cash collateral (as per list of eligible guarantors) 5.  Trade Finance.  Working Capital Finance. Its Corporate Banking solutions include a brand spectrum of products and services backed by proven. both onshore & off-shore.2 Corporate Banking AB Bank provides complete range of solutions to meet Corporate Customers’ requirements.

both onshore & off-shore. projection and forecasting. To increase the SME portfolio of ABBL significantly To improve the quality of ABBL’S portfolio. 5. SME Sector in which AB Bank has participated so far:  Agro machinery  Poultry  Animal Feed  Dairy Product  Fruit Preservation  Hotel & Restaurants 5 . As such the bank has emphasized on the following issues: • • • To provide the best services to the SME sector. AB Bank has been patronizing this sector by extending credit facility of different types and tenor. role and contribution of the SMEs.3SME Banking Considering the volume. Equity Finance. As of now 54% of the bank’s total loan portfolio is segmented to the SMEs which deserves all out attention in plans.  Corporate Advisory Services.

III. Choto puji loan. Goti loan. Digun loan.00 core falls under the preview of large loan unit. V. ABBL offers the following SME loan products: I. As per this segmentation any loan over TK 10. Garments Accessories  Leather Products  Plastic Product  Furniture : Wooden & Metal  Ink  Paint  Printing & Packaging  Wire & Cable  Aluminum  Cement & Lime Plaster  Clinics and Hospitals  Engineering & Scientific Instruments. II. Aparajita loan. 5 . Large Loan & Project Finance  In order to cater the demand of client of AB Bank has segmented its loan size. VI. Proshar loan. IV. Uddog loan.

533.00 1.Chemichal Total ABBL Participation (fig in Lac TK) 9.500.00 5.990.29 5.72 1158.Sugar 8.Energy & Power 5. The deposit amount can also be used for remittance 5 .997. The unit is entrusted to handle the portfolio in a focused manner.4Non Resident Bangladeshi (NRB) Banking Facilities offered to NRBS Opening of Foreign Currency Account AB Bank opens foreign currency Account in USD/GBG/EUR/JPY for NRBs.Paper 10.00 9081.560. Cement 4.00 900.00 900.Textile 2.57 3.00 11. AB Bank is always in front to support establishment of new projects of diverse nature which will help to broaden the manufacturing arena to generate to employment. In AB Bank. there is also a separate Project Finance unit who evaluate the business.Steel Mills 9.00 51.00 7.Glass 7.000.  At the moment AB has participation in 19 syndicated facilities. Foreign currency can be remitted by the Nationals of Bangladesh living Abroad earned by them as wage earners or from other sources.500.29 lac which is diversified in the following ten sectors. AB Bank’s exposure in the ongoing syndication is TK51560. SL Sector 1. Micro Finance 3.Telephone (PSTN) 6.

2009 13.E. Rates of interest are published in daily exchange rate.Large and Mid Rate 13. Rate of interest is 6.25% scale industries 3. reliable and hasslefree inward remittance to the expatriate Bangladeshis around the world. They also have special arrangements to credit beneficiary’s account maintained with them on the same day thorough extensive real time online network.a in USD.5% p. In addition to the above.a in BDT.75% Loan) 5 . Interest is paid in respective Foreign Currency. Rate of interest is 7.25%-16.00% 13. Exchange / Money transfer Remittance Houses all over the globe to facilitate fast. they also have drawing arrangements with 14 years. NFCD AB Bank issues Foreign Currency Fixed Term Deposit in USD/GBP/EUR with different tenure.to other countries as per their requirement.00% medium 13.00% 13.00% Interest Rate W.F October 06. USD Premium Bond These bonds can be issued from the balance of the balance of the FC account with tenure for Three years. USD Investment Bond These bonds issued from the balance of the FC account with tenure for three years. Lending Rates Products 1. Rate of interest is 12% p. Wage Earners Development Bond These bonds can be issued from the balance of the FC account with the tenure for five years.5% p.a in BDT. Agriculture 2.Small Industries ( Term 14. Nominee of account holder can also able to operate this account.

00% 11. Cash ABBL FDR 2.00% 13.00% 13.50% 4. Dhaka.00% 2.Women (Awparajita 50.Export 6.00% upto TK 10.2004.00% 14.Fianance to NBFI’s 11.00 lac) Entrepreneur 10. 5 .Credit Card 10. Prominent Islamic Banker Mr.Other 13.50% 2.00% 13. Kakrail. Kakrail and is situated at 82.00% 13.00% scale industries b) Small Industries 5.50%-17.00% 13. The branch is known as AB Bank Islamic Banking Branch. Cash Collateral.00% -15.00% 16.12.Special Scheme LoansSME 14.00% per month 13. Ramna . M Azizul Huq joined the Bank as its Islamic Banking consultant. AB Bank has established Islamic Banking wing and started it’s functioning by opening fully fledged Islamic banking branch on 23.12.00% per month 13.Housing Loans 8.5Islamic Banking To provide the Islamic banking services in accordance with the principles of Islamic Shariah.00% 12.Working Capital a)Large and medium 13.00% 14.00% 13.00% Collateral.00%-14.00%-15.00% 5.50 7.00% 7.00%-16.00% 13.Consumer Credit 9. A dedicated team of experienced Islamic Bankers are working under his active guidance both at Head office and branch level.50% Banks’ FDR or WDB 3.Others 1.Commercial Lending 7.4.

 To create new entrepreneurs and to arrange required finance for them. Mudaraba Term Deposit Account (with different terms). The goals and objectives of Islamic Banking wings are as under:  To facilitate the Islamic banking system in the country. 5 . FUKAHA and Islamic bankers headed by Mr. ULEMA. Government of Bangladesh has also been formed to guide the Islamic Banking affairs. Under this wing AB Bank extends the following Islamic banking services: • • Deposit Services.A component Shariah Council consisting of Islamic scholers. Investment Services. Under deposit services the following services are being rendered: • • • • Mudaraba Savings Account. Board of directors as well as management of the bank are very much interested to promote Islamic banking system in the bank aiming at opening more Islamic Branches in the near future. Mudaraba Short Noticed Account. Mudaraba Monthly Profit Account. AB Bank has already obtained membership of Islamic Banks Consultative Forum (IBCF) and Central Shariah Board for Islamic Banks of Bangladesh. Shah Abdul Hannan. a prominent Islamic scholar and former Secretary.  To play effective role for socio economic development of the country.  To give assistance in launching welfare oriented economic system under Islamic values.

Foreign Trade: Islamic Banking Wing provides the following services as its foreign trade desks:  Opening of LCs  Post – Import Finance  Export bill purchase and negotiation. 2. Mudaraba Deposit Pension Scheme. they provide the following services: 1. AB Bank Islamic Banking wing has been continuously trying to expand its service horizon keeping the necessity of valued clients in view and upholding the principles of Islamic Shariah.shipment financing. 5 . As a fully fledged merchant banker. ABBL launched its Merchant Banking operation in the year 2003. Portfolio Management. Etc. 5.  Pre.6Investment Banking Merchant Banking Custodial Service Brokerage Service Future Products Merchant Banking Wing (MBW) To expand its horizon.• • Al-Wadiah Current Deposit Account. Issue Management.

 Share transfer in the name of client.  Foreign trade execution and settlement. 5 . Corporate Advisory. 5.3.  Local institution  Sponsors’ group and high net worth client. 4. trust.  Complete the Dematerialization process as per client request. Services  Safe custody of client securities. Underwriting. They also have launched Custodial Services with a view to provide one stop Capital Market services to our valued clients. They understand an entrepreneur’s need for stability. knowledge and service for the success of the customer. The Merchant Banking wing (MBW) of ABBL has made notable progress and is presently equipped to serve customers’ needs by offering a comprehensive range of financial solutions. Custodial Service Customers Investors who are interested to invest in the Bangladesh Capital market  Nonresident Bangladeshi. Private Placement. (NRBs)  Foreign institutional and individual clients. innovation and creativity required for the consolidation and growth of investments and endeavors to prosper. The professionals in MBW with its state of the art integrated computerized system. are always there to provide their vision.

Brokerage Service AB Bank Foundation (ABBF) is a subsidiary company of AB Bank Ltd having holding 99.  All types of corporate action that includes cash dividend.2002 resolved to cancel the Trust Deed and utilize the trust fund for the foundation of a company limited by guarantee primarily for charitable purpose. In near future. Services: 1. bonus share and right share collection.558 (10)/2003. They have already started operation in full swing in corporate head office and Chittagong. ABBF has started its operation by soft launching on 28th August 2006. Then the company was incorporated on 3rd day of November 2003 under section 28 of Companies Act 1994. IPO. The company was first established under the trust deed constituted and registered on the 14th day of May 2002. Brokerage Services AB Bank’s subsidiary. they have started operation by giving to client of AB Bank Merchant Banking wing. The ABBF and its activities: AB Bank Foundation (ABBF) is one of the country’s leading security broker houses of Dhaka Stock Exchange (member # 201) and Chittagong Stock Exchange (member # 101). they will start their Mohakhali and Agrabad Branch operation. Private Placement & Right share subscription as per client instruction with deposit.12.60% share of the ABBF. The certificate of incorporation is C.  Open BO Account.  Instant information regarding client securities positions as per their request. a company limited by guarantee. Subsequently the trust by a resolution of its Board of Trustee in its third meeting held on 29. can act as brokers on behalf of local 5 . which has corporate memberships on Dhaka and Chittagong Stock Exchange.  Quarterly reporting to the client by Custodial Department. Initially. AB Bank Foundation.

business organization and institution. BO (Beneficial Owner) accounts opening and maintenance. 89. 12 percent Govt tax and duties are applicable.OMPs shall be available for three. BO ISIN balances and master maintenance enquiry. E. 25.2 Be a Millionaire in 3 Years 5 . CDBL Services as full service Depository Participant (DP) As a full service depository participant. C. Simply a minimum of TK. 2. Loan facilities will be available at any of the 73 branches of AB Bank. B. Dematerialization. Re Materialization.and foreign individual and institutional client to trade in the local capital market. 5.7New Products 5.for purchasing the OMP certificate to any individual. AB Bank’s Sales & Trading Department will also support brokerage services for offloading shares through direct listing. Pledging and confiscation.7.1Ogrim Munafa Patra A depositor may purchase on OMP by depositing the discounted value of the principal a receipt for TK.000 with a maturity of 12 months (at12% interest rate) the depositor will have to pay TK. D. six and twelve month’s maturity tenures. 100.286/.7. 5. Freeze (freeze request and release request) and suspensions. AB Bank Foundation provides following services: A.000/. F.

business organization or institution can open a TMH. total savings with interest.025.836/10.138/- Gross Return 1. after deduction of Government tax and duties. Any individual. Interest Rate 12.00% 12.00% 11.698/25.021.050/1.7.000. At the end of the respective term.000.543/30. five or six. MSAs can be opened for three.50% Tenor (years) 3 4 5 6 Monthly Savings 23.016.044/1.50% 11.704/21.year terms.The dream of becoming a millionaire is no longer a distant one.030. business organization or institution can open an MSA.007/1. by opening an AB Bank Millionaire Scheme Account (MSA) • • Monthly deposit of Installments.000. will amount to One million Taka.3Troimashik Munafa Hishab Any individual.711/1. Interest will be paid every three months from the date of opening of the account.766/12. Interest will be credited automatically to the designated account. Time of withdrawal Within six months Between six months Second Year Third Year Rate of Interest Nil Prevailing Saving Bank Rate 9% 10% 5 .748/1.602/16. that too within a space of three to six years.000.015/- Net Return 1.586/1.084/- Income Tax (Currently 10%) 16.070/- 5. Anyone can actually become a millionaire. four.

Chapter – 6 6. This demands an insight into the wider aspects of customer psychology and behavior.1Understanding Consumer Understanding customer and customer’s needs and requirements is the guiding philosophy of marketing. positioning and marketing expenditure levels. 6. including what motivates customers. A marketing orientation requires the organization to view its business from the point of view of its customers. It outlines specific strategies for each marketing mix element and explains how each responds to the threats. what their attitude and 5 . opportunities and critical issues spelled out in the marketing plan.0 Marketing Strategies Adopted by AB Bank Limited A marketing strategy can be defined as the outlines of broad marketing logic by which the business unit hopes to achieve its marketing objectives and the specific of target markets.

Segmentation: Bases for segmenting customer Understanding customer and their needs and requirements are important for developing marketing strategy.  Industries. The benefits of market can be an aid in designing marketing strategy.perception about the company and its products as well as an understanding of their decision processes. 6. Again ABBL formulates different segmentation on the basis of geographic or demographic variables.2 Identifying & Targeting Financial Prospects In addition to understanding the broader pattern of consumer behavior. A number of conditions have been noted to affect the effectiveness of potential profitability of marketing strategy like measurability. The factors that ABBL emphasize to identify the needs and requirements are as follows: For corporate customer  Financial Strength and credit worthiness. 5 . accessibility. actionability and differentiability of the target.  Marketing Positioning. substantiality.  Reputation and Integrity. This issue of customer differences can be identified through market segmentation. The accuracy of AB Bank’s identification of marketing segmentation contributes to its competitive advantage since it is one of the conditions of developing an effective marketing strategy. the development of an effective marketing strategy requires AB Bank to understand the differences among customers and their financial products requirements.

Central Bank’s information & regulations. Geographic concentration. Market demand /Trend 4. Maturity of products 3. The main criterion for differentiation is made by the pricing policy through lowering the lending rate from their competitors. They do this by analyzing the reports.4 Channels of Distribution 5 . Pricing policy/ Interest rate 2. 6. For personal banking  Occupation  Income and propensity to save  Attitude toward banking  Market demand  Geographic concentration. Listed Companies. lending rate. Other criteria for differentiation are: maturity of products. brochure or with client interview. deposit rate etc.3 Product Differentiation Strategies Innovation of new products is the main product differentiation criteria that ABBL uses. market demand and geographic concentration. Following are the major common criteria for differentiation of financial products in ABBL: Rank Differentiation Criteria 1. They also modify their offerings from that of their competitors. 6.

diagnosis.Distribution involves a wide variety of activities culminating in the creation of three types of utility: time. place and possession. In terms of place. In addition to this. For example the price of a financial product may be the interest rate of a loan. Under Corporate Social Responsibility (CSR) initiative. As part of corporate philosophy. 6. 5 .5 Pricing for Financial Products The pricing of a financial product can appear in many guises: some prices are obvious. the tax paid on a interest earned on saving etc. With regard to possession distribution provides the customer with access to the product for consumption or future use. some are not. The financial assistance would help the centre to meet necessary day-to-day expenses. the notice required to withdraw money from an account. AB Bank is always committed to the well being of the society. In terms of time. a free charge for advice given and commission paid to an intermediary such as a broker.6 Corporate Social Responsibility AB Bank has contributed taka 0.5 million to support continuous and smooth functioning of Mosabbir Cancer Care Centre as part of the Bank’s CSR initiative. The centre has stepped into its 6th year of operation and has rendered services to approximately 800 poor and helpless cancer patients. distribution makes products and services available to customers in locations which are accessible and convenient to them. 6. distribution allows the customer to gain access to financial service when it is convenient for them to buy. AB Bank takes pride in joining hands with Mosabbir Cancer Centre. consultation and treatment of cancer patients particularly to children suffering from terminal diseases. a non profitable philanthropic organization which aims at extending professional services in the form of counseling. distribution function also provides a means of effectively communicating with the customers and for customers to communicate with the Bank. some are based on monetary value and others are not.

 Various information regarding products.In recent days. Database Marketing ABBL has recently started customer database for marketing purpose. But the operation is not so much extended. AB Bank’s social welfare events have significantly increased the CSR penetration. ABBL uses database for marketing of their products Internet Banking ABBL has their own website.  Verify deposits.  Check loan payment information. Following are the common features are the common features of Internet Banking:  View account balances and transaction history. Chapter -7 5 . Internet Banking has already been started.  Check loan balances.  View interest information.

0 Customer Services Offered By ABBL 7.95% on their outstanding. Other bank credit cardholders having regular payment history will also be allowed to apply for this facility along with their new AB Bank Credit Card application form. Brief description of different features: Card Conversion & Balance Transfer Plan “Card Conversion & Balance Transfer Plan” to AB Bank VISA Credit Card will be extended towards all local Credit Card holders of the market. Easy Buy “Easy Buy” installment plan to AB Bank VISA Credit Card will be extended towards all AB Bank Visa Credit Cardholders. not in “overdue” state. The bank started issuing VISA Credit Cards from the end of year 2004 as a principal member of VISA International. AB Bank Limited is one of the leading first generation private sector commercial banks with Branch network all over the country. provided that their “other banks” credit card is in “regular” state. Electronic payment system is now ruling the world and some days from now cash transactions system will turn into a history found only in the text book. Cardholders will repay the approved transferred amounts to AB Bank Credit Card Account in monthly installments stated in their monthly statements.95% per annum over a tenor ranging from 6 months to 48 months. 5 .1Credit Cards In the present context of banking business in the world. Cardholders can convert any retail purchase done using AB Bank credit card into an installment scheme where they can pay back the amount at rate of interest of 19. Customers can convert their other bank card to AB Bank Card and get interest facility at 19. Card is the feature of any bank.7.

Advantage / Key Benefits  Wide Availability. 60. ranging from 6 to 48 months 1.e. The lockers ensure the safe keeping of customers’ valuables. no down payment. Auto bills pay facility Hassle free monthly payment for AB Bank account holders Higher transaction limit AB Bank VISA Card gives the facility to withdrawal up to Tk. These safety lockers located at selected branches in cities all over the country. No cash advance fee No cash advance fee for cash withdrawal from AB Bank ATM booths & Tk. 2. Small. 125 for per cash withdrawal. I.  Lockers available in various sizes. 3. 7.2 Safe Deposit Locker A safe deposit locker with AB Bank is the solution to the customers’ concern. Simple procedure. 5 . no documentation. Available in comfortable payment options of 6 months to 48 months. 10 only will be charged for per cash withdrawal will be charged from other Q Cash ATM booths. Process just a call away. Market rate is Tk.000 or 50% of credit limit (whichever is low)of the credit limit from any ATM VISA logo.Easy. Lot more features are in the pipeline to add more value to satisfy AB Bank customer. medium and large with varying rents. cardholders can choose own installment plan. convenient and affordable Under the Easy buy program.

Eligibility An individual (not minor). • Where the safe deposit locker is hired in the name of a minor. The locker holder is permitted to add or delete names from the list of person who can operate the locker and can have access to it. societies etc may hire a locker. Rent is payable in advance. • • Lockers can be allocated individually as well as jointly. nomination can be made in favor of only one individual. • Loss of key is to be immediately informed to the concerned branch. limited company. clubs. Lockers are rented out for a minimum period of one year. Terms & Condition • For obtaining a locker at AB Bank one must be an account holder with AB Bank.  The rent may be conveniently paid from the deposit account. firms. 5 . In the case of a sole hirer of a safe deposit locker. Nomination for Safe Deposit Locker • The lockers and their contests can be nominated to people near and dear to the customer. the nomination will be made by a person lawfully entitled to act on behalf of the minor. trusts. association.  Direct debits for locker rentals from the customer’s account rid the customer of the hassle in writing out cheques. • • Nomination facilities are available to individual hirer of safe deposit locker.

Encoded cheque book will be supplied within 3 (three) working days on receipt of the requisition. Bangladesh Bank Clearing House will not honor existing chequebook leaves after April 30.readable. As per Bangladesh Bank instruction they have implemented MICR coded cheque book from June 6. 2009 which will be customized by the Bank. they may continue to use their existing chequebooks to withdraw cash over the counter or to transfer funds to another customer of AB Bank Limited at any of their branches. the bank would request the customer to collect the new cheque book on before July 31. One can conveniently collect new cheque books from his Account Opening Officer of different branch of AB Bank. Only thing they need to do is.3 New MICR Cheque Book AB Bank has started issuance of new cheque book from June 01. 2009.information. visit any branch and fill 5 . then they are able to have ABBL Visa Debit Card. 7. It is the first step towards electronic cheque clearing process. the customer needs to contact the branch nearest to them. They would therefore request the customer to submit their requisition slip duly signed by them from their old chequebook for new Personalized MICR. However. 2009 as per Bangladesh Bank guideline. In this regard. 2010. MICR is a process of printing cheques using magnetic ink and special fonts to create machine.4 AB Bank VISA Electron Debit Card If the customer is maintaining an account with any of the branches of ABBL.• For schedule of rentals. 7. Prevent cheque related fraudulent activities. The new MICR coded cheque book will facilitate: • • Quick processing and faster cheque clearing time.

Caution during making transaction • The customer should not let his card be taken out of his sight at any merchant outlet to prevent possible misuse. customer need to ensure that the card returned to him is his card. The customer should write the PIN on the card or keep the PIN inside the wallet. Tips for usage Card Activation • After receiving the card. • The customer needs to put his signature on the signature panel at the back of his card. PIN Maintenance • • • The customer should destroy the PIN mailer after memorizing the PIN. Then they will receive their card within 7 working days. • Before signing the sales slip cheque at the amount charged.up the application form and submit it. The customer should change the PIN every month. the customer need to sign the acknowledgement slip and send it to Card Division or any Branch of ABBL or call Card Division for activation. the customer simply needs to call AB Bank’s Help Desk at 9558510. • After using the card at a merchant outlet. Card Division immediately. the customer needs to retain the copy of the sales slip of all transactions until they appear in his card account statement for his future reference. He can also report the loss by fax to ABBL. For Lost/ Stolen Card If the card is lost or stolen. Lost Debit / Credit Card For lost Debit / Credit Card customer need to email to the following address: 5 .

The written confirmation of this matter should be duly acknowledged by the Bank Branch. Lost Cheque Book In case of loss or destruction of any cheque book containing unused cheque leaves. the customer will have to inform to the bank immediately. His card will be replaced within 4-5 working days and will be couriered to his mailing address he has provided in his card application form.bd or he can call at Card Division at 9558510. Account Closing • One can close his accounts at any time by giving notice or submit Account Closure form (available of any AB Bank’s Branch) the branch where he has opened his account.cardsteam@abbank. • On closure of the account. His new address will be updated in the Card Management System.com. AB Bank A/C to A/C Fund Transfer Of course one can transfer your fund to another account through his or her request letter. 5 .com. Address Change For address change in the Card customer need to e mail to the following address: cardsteam@abbank. the bank will pay the credit balances of the account and any interest due to the account.bd or he can call at Card Division at 9558510. Signature Change In case of signature change one will need to fill up bank’s prescribed signature change form (available in any branches) or one can request of change of signature by letter with the latest copy of passport size photographs.

maintaining and enhancing customer relationships with the organization.  Providing new facility.  Quick response to customer needs and problems.Chapter-8 8.  Technological innovation. Managing Customer Complaints 5 .0 Customer Relation Management Relationship marketing encompasses activities of attracting. The customers are retained through:  Focus on existing customers. They try to follow some important aspects of CRM. These are as follows: 8.1 Customer Retention ABBL gives emphasize on retaining customers on the basis of existing customer’s base.  Loyalty building & satisfaction. Customer retention can also be made by effectively managing customers’ complain. customer service and quality.  Superior products & quality service. It is an organizational philosophy that impacts on operations and processes. ABBL has a very clear & precise idea about CRM. employees. Building relationships with customers is more than just a marketing function.

The policy objective is to provide procedure to control the processing of complaints as way of improving services to customers and enhance the public image of the bank. ensuring that requests are acknowledged courteously and investigate efficiently and effectively. to make sure that the job is done in a systematic manner within the client’s time frame. They usually make complaint about their problems telling the relevant person in the bank.Customer complaints are identified by a number of ways: such as customer complain box. Customers can provide feedback in a number of ways. They undertake. AB recognizes the right of the customer to complain when felling dissatisfied with the service of the bank. Complain Cell AB Bank Limited is committed to provide the highest quality services to meet customer needs. If anyone wishes to compliment. what they could do better or perhaps differently. verbal form. The relationship managers for 5 . Any issue brought to their attention will be treated in a confidential manner and discussed only with the people who need to be involved. The interviews revealed that the main job of Relationship Managers to reach out to the customers both corporate and personal. The interviews show that the customer complaint boxes are generally not used by the customers. He can simply complete the feedback form attached with the brochure and drop it to complaint box of the branch or send it directly to the complain cell or head office. wherever possible to resolve complaints and to prevent similar complaints from occurring. The job of RM is generally performed by the branch officers. Complaints are managed by taking quick actions. Complain can also be made via webpage or alternatively one might like to speak to member of “Complain Cell” directly through telephone +88-02-9560312 Ext:160. Relationship Managers The concept of Relationship Manager (RM) is being now used in ABBL but the job description of RMS is not well structured as they should. written form. offer suggestions or make a complaint then he is able to let them know what they do that is of benefit to customers.

direct mail. including informing. 8. 3.corporate banking are very much important because during the relationship the bank attempts to solve the problems of client organization and satisfy its need through a series of transactions. sales promotion. and uses personal selling in a limited extent. Personal Selling. Out. Advertising. works harmony with the other elements of the marketing mix enabling the acquisition of new customers to take place. persuading and educating individual or groups. brochure etc are being used by the bank in medium extent. improvements of staff morale and projection of a company image. Public relations for promotional purpose are used in medium extent. publicity and public relation. The mix includes advertising.2 Promotional Activities for Financial Products Promotional performs a number of functions and roles. 2. Percentage Use of Advertising Media 5 . direct response advertising. personal selling. ABBL uses advertising media in a greater extent. The specific combination of promotional method is known as “Promotional Mix”.door advertising media like bill board.2. retention of existing customers. There are several ways in which ABBL communicates with its customer and prospects. Analysis on promotional tools used by ABBL shows that advertising are widely used method of promotion than personal selling. 8. The following are shown the ranking on three mediums of promotion: Rank Promotion Tools Used by Banks 1.1 Advertising ABBL uses newspaper as the promotional campaign and it is used to communicate about the new offer or any new news about existing product and service of the banks. TV commercials are now widely vehicle by ABBL. Public Relations.

2.an identity that the bank carried as Arab Bangladesh Bank Limited for twenty five long years. ABBL uses public relations activities to promote the bank’s image as well as their products. The new logo represents our 5 . As a result of this decision.100% Newspaper 88% Outdoor Advertising 50% TV commercial 8. The bank took a conscious decision to rejuvenate its past identity.3 Branding Image.3 Public Relation The trend of public relation in marketing is growing over time. ABBL uses the brand image through an attractive slogan and by providing the quality service. AB Bank believes in modernization. Wealth Management counseling etc. the bank chose to rename itself as AB Bank Limited and the Bangladesh Bank put its stamp on November 14. The bank has developed its Logo considering the contemporary time. 8. 2007. Priority Banking. The bank decided to change its traditional color and logo to bring about a fresh approach in the financial world. ABBL has Brand Manager. The role of personal selling is taken by the relationship managers but mainly by the officers in branches. Visiting corporate and personal banking etc are some job done by personal selling.2.2 Personal Selling Personal Selling in ABBL is not used in an extensive or structured form. are some slogans used by the bans to create brand image. 8. an approach which like its new logo is based on bonding and trust. Symbol & Logo Brand image and symbol are used in the form of a name or symbol or a combination of both to differentiate their offerings from those of their competitors.

Beginning. Software products from Misys PLC (Running) Core Banking Software: Equation Banking System 5 . AB Bank has prided itself in the quality of the banking services it provides by taking conscious decision to employ the best available banking technology to serve the customers which now stands over 2. connectivity and standardization of processes and hardware throughout. Thus the new spirit of AB is “Bonding”. 2005 Misys implementation was taken-up and in the 1st Phase seven (7) Branches were upgraded to the new core banking system. Our new logo innovates. bonding of affiliates that generate changes considering its customer demand. Core banking system Kapiti was employed alongside the manual banking operations ever since 1984. Chapter -9 9.000 in all.0 Performance of AB Bank Limited IT @ ABBL Business Automation Being the first private sector bank of the country. Later on in the tear 2004.cultural “Sheetal Pati” as it reflects the bonding with its clientele and fulfilling their every need.00. in line with the growth strategy. Bank took up a massive project of migration. Misys core banking solution was selected for implementation to take AB in to super highway of real time online banking of today. For the year 2006. The logo of the bank is primarily “Red” as Red represents velocity of speed and purity. A core team was formed for this purpose and the theme of the team was “Yes We Can”. service quality improvement and availability were put into focus whereupon coverage of remaining Branches under Misys became all the more important. AB Bank launched the new logo on its 25th Anniversary year.

personal bankers and relationship managers. users can filter and manipulate the data to isolate key elements of information for analysis purposes. The Equation Branch Automation system is already tightly integrated with the Equation core banking server and provides ready-to-run functionality to support cashiers. Equation Branch Automation allows online. real time. removing the need to print and distribute paper versions of reports. as excel spreadsheets and for analysis using multi dimensional Pivot Tables. run and deliver user-defined reports. Reports can also be distributed automatically as e mails. Web form will capture existing reports. making it an invaluable management reporting tool. Reports are automatically captured are delivered to users as web pages over the bank’s internal network. real time transaction processing for the Equation Banking server with immediate access to account and transaction information and verification of availability of funds. Software products from Misys PLC (Implementation Phase) Trade Finance Software: Trade Innovation TI has been designed with advance workflow management to streamline the entire transaction lifecycle and the overall workflow of the trade finance operation. users can drill down to see details of the underlying accounts. It supports consumer and corporate banking as well as treasury operations on a single platform. enabling people who do not have direct access to the system to be kept informed with the latest data. Using the Pivot Tables built from Equation reports and associated databases. Reporting software: Web form Web form applies the latest web – based technology to the Equation banking system. Report data is available as web pages. TI allows the bank to define 5 . Once they have generated the required view of the data. From End Software: Equation Branch Automation Equation Branch Automation is designed to support customer facing staff within a retail branch banking environment. and provide an enquiry system for any previous business data. multi currency retail banking solution that helps organizations deliver competitive products and excellent service to customers.Misys Equation is a fully integrated.

Each user can have a pre.service agreements (SLAs) for each customer.1 Financial Performance of ABBL at A Glance Million Taka December 31 Gross Interest Income Net Interest Income Operating Profit(PBP&T) Net Operating Profit(PBT) Profit after Tax (PAT) 2008 7.030.09 28.99 1.439.366.77 20.59 42.96 2007 5.298. with different levels of access to customer and account information and transactions.817.90 1.59 2. silver.lateral agreements for individual customers. bronze) or bi.58 69.77 84. simplifying control and reducing risk.903.28 3.86 28.09 29.62 2. The factoring capability in TI is optimized for trade receivables financing available.560.708.053. The bank can apply either customer groupings (e.26 49.62 68.ROE 5 . 9. Internet Banking Software: Integrated Financial Module Equation IFM offers powerful features for business customers. Finance is calculated on the agreed.325.60 32.511.98 62.35 40.26 27.51 2. discounted total of eligible receivables available on any one day.69 4.600.49 53.85 2.75 66.375.47 56.79 41.29 2.39 3.86 4.defined authorization limit.549.g.269.19 % Change 39. Customers can administer their own user communities.57 40. Drawings are processed at the expressed at the express request of the customer.35 63.61 6. gold.300.45 38.722.915.01 Deposits Loans & Advances Total Assets Shareholder’s Equity NIM % Non Interest Income to operating Income (%) Cost Income Ratio Return on Equity.

initiatives. customer support and performance towards that visionary path.31 85.66 10.18 3.(%) Return on Assets-ROA (%) Advance Deposit Ratio (%) Capital Adequacy Ratio NPL as % of Advances Earnings per Share (TK. “To be the Trendsetter for innovative banking with excellence and perfection”. Board took the mission for the year as “a year of consolidation and growth”. Many of the big industries in different fields of the economy has AB’s name attached and AB Bank remains a proud development partner of these industrial houses over the years. Dhaka way back in 1982. Over the years. products. AB Bank reached a milestone on 12th April.84 2.71 12. AB’s Sponsors set a vision for the Bank which reads. Throughout these 28 years AB Bank raised the bar for itself through service.37 9.99 103. In line with that. AB Bank has contributed in many ways towards development of the private sector banking in Bangladesh.2 Operating Performance of ABBL Board of directors of AB Bank Limited (ABBL) takes immense pleasure in presenting the 25th Annual report of the bank. At the beginning of the year 2005.75 4. year 2006 was identified to be the year of “financial re structure and growth”. AB Bank is exposed to the entire gamut of economic developments and activities both within and outside the country.41 76.) 3.12 82. 2010 when AB reached 28 years of its journey which started with a single Branch operation at Karwan Bazar. 5 . It is also the privilege of the board to present the audited accounts of the bank for the year ended 31st December. Being a financial institution. AB being the pioneer in private sector banking in Bangladesh will be the first to achieve this milestone. 2006 and the Auditor’s Report thereon.

In online transaction the account holder has account in another bank. can provide 24 hour banking to its customers so that customers can withdraw money at any time. The account holder sent the amount to his account.9. Before ATM if customer wanted to transfer his fund to other bank account or other branch account. Online transaction is made only ABBL to ABBL.3 Online Banking Any new technology in banking sector has its own effects because new technology indicates the improved operation and performance of the sector. ATM and online banking has also effected the remittance department and increased its efficiency. So that they can 5 . Cash department involves Receipts and Payments process manually. Before ATM and online technology ABBL was able to provide only 8 hours services for payment. Then he had to submit a cheque which takes a lot of time for clearance process before online banking to transfer the funds to other branches or to other banks. The banker can access any branch and transfer funds to it within no time. customer had to give application to the bank. subtract any outstanding checks and add any outstanding deposits. So the quick adopters of new technologies have an edge over others in the industry. After ATM AB Bank Ltd. If anyone needs to verify one’s bank account balance. After ATM banking customer can transfer money from his account to any other account at any time anywhere in Bangladesh without waiting for the clearance process. The remittance department transfers the funds from one bank to other bank and from one place to another place. But now ATM is used which has affected the cash department in some extent. Through online banking bankers has no need to send cheque or money through demand draft or telegraphic transfer etc. Introduction of new technology has an extensive effect on customers. AB Bank uses new technology in different department. one just need to take the bank’s balance as shown online. ATM technology reduces the extra burden on the cashier and now bank don’t need extra cashier and clerks. Customers were enforced to wait in huge lines for getting payments. To check the total amount of account. When customer withdraws money a mini statement of his account is shown to the customer. Now customers have no need to wait for the payment in long queues. which improves the quality of services of that department.

Most online banking sites are compatible with programs like Microsoft Money and Quicken. It will allow one to pay bills and make transaction anytime during the day and the week. The bank will never close because can access it through laptop or computer. The Advantage of Online Banking First and foremost. Secondly online banking is very fast. So no matter in which country of the world he ca go online and handle his finance. online banking is very convenient.transfer the amount. Online banking services also give the option of handling several different bank accounts from one site itself. which makes management of assets more effective. effective and efficient. Over the internet. they can cash the amount. 5 . they can find the balances & receive the statement of his account in another branch. one can make transaction that are typically executed and performed at a much faster pace than at ATM’s.

Jordan Securities Commission (Jordan). This broadcast sponsorship is intended to create popularity of the bank. creating public awareness on some important issues and sponsorship for many events. 2008 at the Intercontinental Geneva Convention Hall. President and Managing Director of AB Bank Kaiser A. Prieto said at the award presentation ceremony. Some of these activities are:  Donation to flood affected.  Anti dowry movement. AB Bank received the award in the Gold category in recognition of its “commitment to quality.  Stipends for students. technology and innovation. AB Bank has been awarded prestigious Century ERA Award at the 10th BID Quality Convention in Geneva.Chapter -10 10. Golden Meditech Company (China).” 5 . ideas and education. Chowdhury received the award from the Executive President of Business Initiative Direction (BID) Jose E. “ the awarded companies are symbols of commitment to leadership.” Among the outstanding companies including AB Bank at this year’s convention were Emak (Egypt). Prieto on March 10. Kreka (Greece). They do this by engaging publicity through contribution to the charitable issues.  Rehabilitation for acid burned etc. Sport sponsorship is used by ABBL in the live telecast of cricket and a few games and offers a large viewing figures and opportunity of targeting a wide audience. Asia and Africa attended the Convention. leadership. technology and innovation which makes them models for other companies of their sector. Europe. Companies are of 43 countries from America.0 Findings of the Report ABBL has already been engaged in societal marketing. Jose E.

 Electronic. ABBL is now feeling the greater importance of marketing because of increased competition. maturity.  Internet banking has been used in a limited form.  Any new product and existing or modified offerings are communicated largely by newspaper.  Usually no pretest is used to market for any financial product. I have noticed the following issues which need special attention by relevant authorities:  Marketing is being practiced by ABBL is not so much structured.  Innovation of new financial products is rare case rather they hardly upgrade their offerings on the basis of some changes in interest rate.  Tele. The study shows that there is a great potential in marketing of financial products which will make ABBL more effective. technological innovation and government regulations.  Banking. 5 . They are trying to create a vision of marketing with a large number of promising issues like:  Customer Relationship Management.  ABBL can start to provide the service of SMS banking. During the time of preparing this report.banking.10.1 Recommendation & Conclusion This report has focused on the marketing strategies of financial products in ABBL with a view to identify what they are now doing in this regard and what are the future prospects of marketing of financial products. TV commercial is used in a limited form. market demand.  Branding.

etc. Product differentiation attributes. as ABBL is now aware of its performance. 5 . it has a good potential for development. Thus the changing environment is creating a changing demand for marketing strategies and by developing an effective marketing strategy ABBL can retain market shares and profitability as well as competitive advantage. it can be concluded that although financial product marketing of ABBL is in an early stage. Finally.

abbank.Bibliography I.com. II.Kevin Lane Keller. IV. Strategic Brand Management (2nd edition). 5 .efinancial/news. www.org/wiki/Marketing Strategy Principles of Marketing (11th edition). VI.com En. V. By Philip Kotler & Gary Armstrong. AB Bank Ltd. Annual Report.bd www. III.wikipedia.