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Dutch Bangla Bank Ltd 02. AN OVERVIEW OF DUTCH-BANGLA BANK LIMITED 2.1 Introdu t!


Dutch-Bangla Bank Limited (DBBL) is a Bangladesh-European joint venture scheduled commercial bank established under the Bank Companies Act 1 public limited compan! under the Companies Act 1 1 and incorporated as a "# DBBL is the $irst European-

Bangladesh joint venture private commercial bank in Bangladesh# %he registered head o$$ice o$ the Bank is located at &enakal!an Bhaban' 1 (' )otijheel Commercial Area' Dhaka# %his part o$ the report $ocuses on the brie$ histor! and current pro$ile o$ DBBL# An overvie* o$ the organi+ation and operations o$ )irpur Branch o$ DBBL' *here the internship *as done' has also been presented here# 2.2 Br!"# H!$tor% (# Besides

DBBL *as incorporated as a private-sector banking compan! on ,ul! -"' 1

the Bangladeshi sponsors' the .etherlands Development /inance Compan! (/)0) has been the international co-sponsor o$ the Bank# DBBL obtained license $rom Bangladesh Bank on ,ul! 12' 1 (' and commenced its banking operations $rom ,une 2' 1 3 *ith onl! one branch at Dilkusha Commercial Area' Dhaka# %he Bank *ent public in the !ear 1--1# DBBL is listed *ith Dhaka &tock E4change Limited (D&E) as *ell as Chittagong &tock E4change Limited (C&E)# 2.& Curr"nt 'ro#!("

%his section describes the corporate philosoph!' capital and shareholding structure' organi+ational structure and operational net*ork o$ the Bank#

2.&.1 Cor)or*t" '+!(o$o)+%. %he corporate philosoph! includes the mission' vision
and core objectives o$ the Bank5

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Dutch Bangla Bank Ltd 2.&.1.1 M!$$!on o# DBBL. Dutch-Bangla Bank engineers enterprise and creativit! in business and industr! *ith a commitment to social responsibilit!# 89ro$its alone: do not hold a central $ocus in the Bank;s operation< because 8man does not live b! bread and butter alone:# 2.&.1.2 V!$!on o# DBBL. Dutch-Bangla dreams o$ a better Bangladesh' *here arts and letters' sports and athletics' music and entertainment' science and education' health and h!giene' clean and pollution $ree environment and above all a societ! based on moralit! and ethics make all our lives *orth living# DBBL;s essence and ethos rest on a cosmos o$ creativit! and the marvel-magic o$ a charmed li$e that abounds *ith spirit o$ li$e and adventures that contributes to*ards human gro*th and development# 2.&.1.& Cor" O,-" t!."$. Dutch-Bangla Bank believes in its uncompromising commitment to $ul$il its customer needs and satis$action and to become their $irst choice in banking# %aking cue $rom its pool o$ esteemed clientele' Dutch-Bangla Bank intends to pave the *a! $or a ne* era in banking that upholds and epitomi+es its vaunted mar=ue5 /0our Tru$t"d '*rtn"r1# 2.&.2 C*)!t*( *nd 2+*r"+o(d!n3 2tru tur". %he capital and shareholding structures are as $ollo*s5 2.&.2.1 C*)!t*( 2tru tur". %he authori+ed capital o$ DBBL is %aka "--#-- million# At present the issued' subscribed and paid-up capital o$ the Compan! stands at %aka 1-1#1" million# 2.&.2.2 2+*r"+o(d!n3 2tru tur". %hough DBBL is a public limited compan!' lion;s share in the Compan! is held b! the sponsors as against a small portion issued to the public# %he present shareholding stands as $ollo*s5 • 2)on$or$4   • /oreign Local 5 2-#--> 5 3-#--> -#-->

'u,(! I$$u"4

Bangladesh 6nstitute o$ Bank )anagement

Dutch Bangla Bank Ltd    6nstitutional 5 1#"(> 5 -#22> 5 7#11> 1-#--> 100.005 %he shareholding structure is sho*n in /igure 1#

6nvestment Accounts ?eneral 9ublic


Foreign Sponsors (30.00%)

Local Sponsors (60.00%)

Public Issue (10.00%)


Or3*n!6*t!on*( 2tru tur" *nd O)"r*t!on*( N"t7or8. %he present

organi+ational structure and operational net*ork o$ the Bank are described belo*5 2.&.&.1 Bo*rd o# D!r" tor$. At the ape4 o$ the organi+ational structure o$ DBBL is a @member Board o$ Directors# Among the Directors' one is the Chairman o$ the Board' one is the nominee o$ Etacol Aong Bong Limited' one is elected $rom the ?eneral &hareholders; ?roup' one is the E4-o$$icio Director ()anaging Directive)' and the others are Compan!;s &ponsor Directors# )r# )d# Ceasin Ali is the present )anaging Director and Chie$ E4ecutive o$ DBBL# Dnder him there are t*o Deput! )anaging Directors5 Deput! )anaging Director (0perations) and Deput! )anaging Director (Administration)# 2.&.&.2 D!.!$!on$. %here are 12 divisions at the Aead 0$$ice o$ DBBL# %hese are5

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Dutch Bangla Bank Ltd • • • • • • • • • • • • • ?eneral &ervice Division# Credit Division# Credit Administration Division# Credit )onitoring and Eecover! Division# Corporate Banking Division# Eetail Banking Division# 6nternational Division# %reasur! Division# Auman Eesources Division# Accounts Division# 6n$ormation %echnolog! Division# )arketing and Development Division# 6nternal Control and Compliance Division#

An organogram o$ the DBBL Aead 0$$ice is sho*n in Appendi4 A# 2.&.&.& Br*n + N"t7or8. DBBL has so $ar established 2( branches around the countr!# Among them' 1@ are in the Dhaka Cit!' ( are in Chittagong' " are in .ara!angonj' " are in &!lhet' 1 in Bhulna' 1 in Bogra' 1 in Barishal' 1 in Eajshahi and one is in .arshingdi# 2.&.&.9 Int"rn*t!on*( N"t7or8. DBBL has been ver! success$ul in establishing an

e$$ective correspondence relationship across the globe and continuing its endeavour to

Bangladesh 6nstitute o$ Bank )anagement


Dutch Bangla Bank Ltd reach ever! corner o$ the *orld to deliver prime services to its valued clients# At present' DBBL has coverage o$ more than 11- countries through 1-- correspondent banks# 2.&.&.: On-(!n" B*n8!n3 N"t7or8. &pending %aka 1(-#-- million' DBBL has started its ambitious on-line banking service since &eptember 1--"# .o* the customers o$ DBBL get Fan! branch banking service; around the countr!# As part o$ the trul! on-line banking programme' the Bank provides 6nternet Banking' DBBL .EGD& Debit Card' DBBL-)aestroHCirrus Debit Card and DBBL Credit Card# A net*ork o$ Bank;s o*n A%)s and 90& terminals has been set up at strategic points throughout the countr!# %his $acilitates the customers to pa! their utilit! bills through these A%)s and 6nternet banking# %hrough DBBL-)aestroHCirrus Debit Card' customers *ill be able to access more than 2--'--- Cirrus A%)s in around 1-- countries# 2.9 B*n8!n3 2"r.! "$ *nd F* !(!t!"$ 'ro.!d"d

DBBL provides a range o$ services and $acilities to its customers' *hich include general banking' retail banking' credit $acilities' and $oreign trade services# 2.9.1 G"n"r*( B*n8!n3. %he services provided under general banking include deposit schemes' purchaseHsale o$ bonds and instruments' remittance' and pa!mentHcollection o$ bills# D")o$!t 2 +";"$. At present' DBBL o$$ers the $ollo*ing Deposit &chemesHLiabilit! products in its all branches5 • Curr"nt D")o$!t$ <CD=4 A Current Deposit Account ma! be opened b! an! individual' $irm' compan!' and club' association' corporate bod! etc# %he common $eatures are5 o Iithdra* able on demand# o .o interest is paid# o .o limit in $re=uenc! and amount o$ transactions#

Bangladesh 6nstitute o$ Bank )anagement


Dutch Bangla Bank Ltd • 2*.!n3$ B*n8 D")o$!t$ <2B=4 &avings Bank Account ma! be opened in the names o$ individuals' clubs' societies' association and similar institutions and even b! government and semi-government o$$ices# 6nterest rate is 7#(> calculated on dail! product basis# • F!>"d D")o$!t$ <T"r; D")o$!t=4 Deposit accepted on $i4ed term basis issuing a /i4ed Deposit Eeceipts (/DE)# %he usual $eatures are5 o /DE is neither trans$erable nor negotiable# o 6ndividual' $irm' compan!' corporate bod! etc ma! open account# o Dsual maturit! range $rom 2 months to 23 months# o %he interest rates di$$er as per maturit!# • 2+ort T"r; D")o$!t$ <2TD=4 Account ma! be opened b! corporate bod!' bank' $inancial organi+ations and individuals# %he $eatures include5 o Deposits held in &%D Account can be *ithdra*n in @ da!s notice# o 6nterest is pa!able on balance held on dail! product basis# o %he interest rates di$$er according to terms and maturit!# • Mont+(% T"r; D")o$!t$ <MTD=4 %his is a uni=ue product o$ DBBL o$$ering customers comparativel! high returns against short term deposits# o )%D is a high-return $i4ed deposit account# o 6t is similar to /DE but *ith higher interest rate# o Eate o$ 6nterest under this &cheme is #-->#

Bangladesh 6nstitute o$ Bank )anagement


Dutch Bangla Bank Ltd o %he minimum balance to be maintained in the account is %aka (-'---# o 0ne can *ithdra* monthl! interest over the deposited amount or can rene* the )%D receipt adding the interest *ith principal amount at the prevailing rate# 2*("?'ur +*$" o# Bond$ *nd In$tru;"nt$. /rom the counters o$ all DBBL

branches' customers can avail the $ollo*ing $acilities5 • • • 2.9.1.& 9urchase and &ale o$ 9ri+e Bonds# &ale and Encashment o$ &ancha!a 9atras# &ale and Ee-purchase o$ 6CB Dnit Certi$icates# R";!tt*n ". DBBL;s remittance services include5 6ssue and pa!ment o$ Demand Dra$ts (DD) against5 o Cash# o Che=ue# o A letter o$ instruction on account# • 6ssue and pa!ment o$ %elegraphic %rans$er (%%) against5 o Cash# o Che=ue# o A letter o$ instruction on account# • 6ssue and pa!ment o$ 9a! 0rders (90) against5 o Cash# o Che=ue# o A letter o$ instruction on account#

Bangladesh 6nstitute o$ Bank )anagement


Dutch Bangla Bank Ltd DBBL takes no commissions or service charges $or the above-mentioned remittance services' but the customer must have an account *ith the Bank to avail these services# '*%;"nt?Co((" t!on o# B!(($. DBBL;s services in this regard are as $ollo*s5 • 9a!mentHCollection o$ 0utstation Che=ue# • • • 2.9.2 9a!mentHCollection o$ 0ut*ard Documentar! Bills# 9a!mentHCollection o$ 6n*ard Bills# 9a!mentHCollection o$ 6n*ard Documentar! Bills# R"t*!( B*n8!n3. %he retail banking services provided b! DBBL includes

Locker &ervice and Consumer Credit &cheme# Lo 8"r 2"r.! ". DBBL provides international standard $ireproo$ locker $acilit! to our valued customers at comparativel! lo*er charges $or sa$e deposit o$ their valuable belongings# %he annual rents $or di$$erent si+es o$ lockers are5 • • • &mall Locker )edium Locker Large Locker 5 %aka 1---#--# 5 %aka 1(--#--# 5 %aka 1---#--#

0ther than rent' a one time ke! deposit $or %aka (--#-- is re=uired *hich is re$undable at the time o$ surrender o$ the Locker and the Be!# Con$u;"r Cr"d!t 2 +";". %he DBBL Consumer Credit &cheme is designed

primaril! to $acilitate the purchase o$ di$$erent consumer items# &tarting at a small scale' DBBL plans to e4pand this scheme a$ter $ull automation o$ its operational net*ork# 2.9.& Cr"d!t F* !(!t!"$. DBBL e4tends a range o$ credit $acilities to di$$erent t!pes o$

customers# 2.9.&.1 T%)"$ o# Cr"d!t F* !(!t!"$. DBBL o$$ers the $ollo*ing t!pes o$ loans and

advances to its customers5

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Dutch Bangla Bank Ltd • Lo*n$4 Loans are allo*ed $or various purposes and granted $or short' mid or long term maturities# %!pes o$ loan include5 o Loan ?eneral (usuall! short term in nature)# o %ransport Loan# o Aouse Building Loan# o %erm Loan (6ndustrialH9roject /inancing)# o Iorking Capital# o Consumer Credit# o Bridge LoanHDnder*riting Advance# o 0thers# • D";*nd Lo*n$4 Loans *hich are pa!able *hen a demand is made# &uch loans include5 o Advance against Accepted Documentar! Bill# o Local H /oreign Documentar! Bills# o 9a!ments against Documents (9AD)# o 6nlandH/oreign Bill 9urchased (Clean)# • Cont!nu!n3 Ad.*n "$4 Continuing advances are the revolving lines o$ credit' *hich are e4tended to the borro*ers $or continuing business activities# %he $orms o$ continuing advance are as under5

&ecured 0verdra$t including collaterali+ed overdra$t (&0D)#

o o o

Cash Credit (CC)# Loan against %rust Eeceipts (L%E)# Loan against 6mported )erchandise (L6))#

Bangladesh 6nstitute o$ Bank )anagement


Dutch Bangla Bank Ltd

E4port Cash Credit (ECC)#

Cont!n3"nt #* !(!t!"$4 %hese are o$$-balance sheet activities *hich include5 o Letters o$ Credit (&ightHBack to Back)# o Letters o$ ?uarantee (Bid Bond' 9er$ormance ?uarantee' Advance 9a!ment ?uarantee' &ecurit! ?uarantee)# o 0ther#


T%)"$ o# Borro7"r$. DBBL e4tends credit to di$$erent t!pes o$ customers

*hich include5 • Ind!.!du*(4 A single personHpersons or a sole proprietorship concern having valid trade license issued b! competent authorit! can avail DBBL credit $ul$illing the pre-re=uisites# • '*rtn"r$+!)4 All 9artnership concerns having necessar! partnership deed can also take credit $rom DBBL# • 'u,(! ?'r!.*t" L!;!t"d Co;)*n!"$4 An! registered compan! can avail loans and advances against corporateHpersonal guarantee# • Tru$t$?C(u,$?2o !"t!"$4 %rustees o$ a trust can borro* $rom DBBL onl! i$ the! have e4plicit authorit! given b! the %rust CharterHDeed to borro* and to o$$er assets o$ the trust as securit! against the loans# DBBL does not o$$er an! advance including temporar! overdra$t to an! unincorporated societies or clubs as because the! cannot be sued $or a debt# 2.9.&.& 2)" !*(!6"d Cr"d!t 2 +";"$. Besides its general credit $acilities' DBBL has

some speciali+ed credit schemes that are uni=ue in nature# &uch schemes include5

Bangladesh 6nstitute o$ Bank )anagement


Dutch Bangla Bank Ltd • Cr"d!t 2 +";" #or 2;*(( 2+o) O7n"r$4 DBBL o$$ers this uni=ue service to the small shop o*ners *ho *ere so $ar denied credit $rom banks due to their lack o$ ade=uate collateral securit! and *ere dependent on in$ormal credit usuall! *ith ver! high interest rates# %his Bank has brought them under the umbrella o$ banking service b! o$$ering them loan $acilities *ithout an! securit!# %he average loan amount is %aka ( lacs# • 'u,(! Tr*n$)ort Cr"d!t 2 +";"4 DBBL has e4tended credit to the

$ollo*ing public transport s!stems5 • Dur*nt* *nd R!d"r Tr*n$)ort 2"r.! "$4 6n collaboration *ith )eghna Automobiles Limited and Bhansons Automobiles Limited# • • T*>!- *, Tr*n$)ort 2"r.! "$4 6n collaboration *ith Com$ort Cab Limited# R"$ u" Tr*n$)ort Cr"d!t 2 +";"4 %his is another uni=ue service in *hich DBBL $inances the purchase o$ emergenc! medical transports like ambulances' mobile clinics and $irst aid stations $or hospitals and clinics around the countr!# Dnder this scheme' @-> o$ the initial purchase price is borne b! DBBL and the rest amount b! the borro*ing hospital or clinic# %he loan amount is to be repaid b! the borro*er in ma4imum 23 monthl! instalments at 12> interest rate# • 2tud"nt Tr*n$)ort Cr"d!t 2 +";"4 %he Bank has undertaken a ne* credit scheme named 8&tudent %ransport &cheme: *ith an objective o$ $inancing transports at a lo*er cost (11> interest rate) $or the educational institutions# %he $inancing scheme *ill provide loans to Educational 6nstitutions covering government and private schools' colleges and universities $or purchasing transports $or the students# 2.9.9 For"!3n Tr*d". %he $oreign trade $acilities provided b! DBBL include import

$inance< e4port $inance' and $oreign remittance#

Bangladesh 6nstitute o$ Bank )anagement


Dutch Bangla Bank Ltd I;)ort F!n*n ". DBBL e4tends $inance to the importers in the $orm o$5 • • • • • $orms5 • 'r"-2+!);"nt F!n*n "4 9re-&hipment $inance in the $orm o$5 o 0pening o$ Back-to-Back LHC# o E4port Cash Credit (ECC)# o 9acking Credit (9C) • 'o$t-2+!);"nt F!n*n "4 9ost-&hipment $inance in the $orm o$5 o /oreignHLocal Documentar! Bills 9urchase# o E4port Credit ?uarantee# o /inance against cash incentive# 2.9.9.& For"!3n R";!tt*n ". %he $oreign remittance services include5 • • • • • /oreign Demand Dra$t (/DD)# Cash Dollar (Bu! and &ale)# %ravellers; Che=ue (Bu! and &ale)# 6n*ard %elegraphic %rans$er (6%%)# 0ut*ard %elegraphic %rans$er (0%%)# 0pening o$ 6mport LHC# Credit against %rust Eeceipt $or retirement o$ import bills# &hort term and medium term loans $or installation o$ imported machineries and production thereo$# 9a!ment against document Loan against 6mported )erchandise (L6))

E>)ort F!n*n ". %he e4port $inance $acilities are given in the $ollo*ing t*o

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Dutch Bangla Bank Ltd • 2.: /oreign Bill Collection (/BC)#

DBBL@$ 2o !*( A3"nd*

%he ethos o$ DBBL $or pursuing its activities in social arena has got $urther momentum *ith !our enthusiasm and support# Dutch-Bangla Bank /oundation (DBB/) is consistentl! pursuing its objective o$ being active in those social areas *here it is needed most# %he /oundation carries out diverse social and philanthropic activities in the $ield o$ education' health' conservation o$ nature' creation o$ social a*areness' rehabilitation o$ distressed people and such other programs to redress human su$$erings# 6t also promotes di$$erent socio-cultural and sports activities# Cour Board o$ Directors in order to discharge its corporate social responsibilities in a greater perspective continued its contribution amounting to (#--> o$ BankJs pro$it a$ter charging loan loss provision to Dutch-Bangla Bank /oundation (DBB/)# 6t is important that citi+ens o$ a societ! enjo! the $ull bene$its that societ! o$$ers# A societ!' in turn' $lourishes *hen its citi+en can contribute their $ullest potential# %he *ell being o$ individuals is jeopardi+ing *hen normal developmental processes are interrupted b! personal crisis' povert!' unemplo!ment' poor health and inade=uate education# Dutch-Bangla Bank Limited (DBBL) is the $irst Bangladeshi-European joint venture bank in Bangladesh addresses social concerns that threaten the structure o$ societ! and redress social conditions that adversel! a$$ect the *ell being o$ people and societ!# DBBL practice thus encompass the pro$essional activities o$ helping individuals' $amilies' groups' organi+ations' and communities to enhance or restore their capacit! $or optimal social $unctioning and o$ creating societal conditions $avourable to this goal# Dutch-Bangla Bank /oundation (DBB/) *as established on 2rd ,une 1--1 to per$orm humanitarian *orks like rehabilitation o$ the destitute and neglected portion o$ the societ! speciall! grassroots level poor in right track# Aim and objectives o$ DBB/ are as bello*# 1# %o grant' pa! or give' a*ard scholarship' stipends' pri+es' re*ards' allo*ance and other $inancial assistance or help in cash or kind to students *ith a vie* to help

Bangladesh 6nstitute o$ Bank )anagement


Dutch Bangla Bank Ltd them in prosecuting their stud! in universities' schools' colleges' educational institutions' technical institutions' art schools' institutions o$ teaching commercial and training' research or educational *orks in Bangladesh or abroad subject to such terms and conditions as shall $rom time to time be prescribed b! the Board o$ %rustees $or advancement and promotion o$ education# 1# %o $oster and encourage education and training in the $ield o$ banking among the persons emplo!ed in banking sector or *ho *ishes to partake training *ith a vie* to be engaged in banking service and to establish and $ound institutions imparting such education and to establish' maintain' support or help b! monetar! gi$ts or other*ise' centres and institutions $or such education and training# 2# %o meet travelling' boarding and lodging e4penses $or students going abroad $or higher commercial and technical education' especiall! in banking subject(s)# "# %o open' $ound' establish' promote' set-up' run' maintain' assist' $inance' support and I aid or help in setting up and H or maintaining and H or running hospitals' clinics' maternit! and child care centre' boarding houses' libraries' readingrooms' g!mnasium and other training and vocational institutes# (# %o publish and or publishing books' pamphlets' periodicals' and ne*spapers in Bangladesh or outside $or the spread and advancement o$ education and culture# 3# %o establish' promote' set-up' maintain' assist' $inancial support and H or aid to or to help in the setting up and H or maintaining and H or running schools and other institutions' orphanages' *ido* homes' lunatic' as!lums' old homes' poor houses or other establishments $or relie$ and H or help to the poor' old and in$irm people and H or destitute or to give' provide and H or render help and assistance in cash or kind to poor and or destitute' *ido*s' etc< or to give' provide and I or render help and assistance to and H or implement an! scheme $or providing livelihood and upli$tment o$ the poor# @# %o give' provide and / or render $ood' medicine and other help $ind assistance in an! shape or $orm to the poor deserving and need! persons# 7# %o give' provide and / or render monetar! and H or other help and assistance $or the relie$ o$ persons and animals a$$ected b! natural and other calamities such as

Bangladesh 6nstitute o$ Bank )anagement


Dutch Bangla Bank Ltd $lood' $ire' $amine' c!clone' earth-=uake' storm' accident' pestilence' drought' epidemic' etc# # %o open' $ound' establish' promote' set-up' run' maintain' assist' $inance' support and H or aid or help in the setting up and H or maintaining and H or running institutions' centre' auditoriums and the like $or the running o$ *el$are and other services to the public and to provide meeting-room $or sociall! use$ul activities and $unctions# 1-# %o promote' organi+e' administer' establish' support' maintain' and H or grant to an! person' institution or societ! or organi+ation *hatsoever having $or its objects or charitable purposes and or incur e4penditure in connection there*ith# 11# %o promote sports and culture through establishment o$ Clubs $or sports' recreational and cultural activates and introduce a*ards' shields' medals etc# and also organi+e debates essa! and sports competitions to achieve this object# 11# %o organi+e meetings' seminars' s!mposia etc# to create a*areness among the people aimed at spreading and upholding the ideals' values and spirit o$ the Banking and related products and services# %o *ork in collaboration *ith other %rusts' /oundations' Associations and bodies having activities' programs' and projects aimed at establishing' spreading and upholding the ideals o$ Dutch-Bangla Bank /oundation#

Bangladesh 6nstitute o$ Bank )anagement