PRESIDENCY UNIVERSITY COURSE CODE: FIN307 COURSE INSTRUCTOR: MD.

SAROWAR KHALED SPRING 2010

Report on Banking and Insurance of Bangladesh: Products
Bank: Eastern Bank Limited Insurance: Pragati Life Insurance

Submitted By: Md. Abul Hasnat Nusrat Ali Shahriar hossain Ashiqur Rahman Farzana Akter Chowdhury Date: 10th April, 2010

Bank Deposit Products

Interest calculated on daily balance Interest is credited to your account every month Competitive interest rate Unlimited cash withdrawal Available in all EBL Branches No extra terms and conditions

Minimum Age: 18 years Citizen of Bangladesh

EBL Campus - first time in Bangladesh a tailor made banking pack for students. Campus Account : Under EBL Campus , yet another wonderful product that directly takes you into the rewarding world of general banking. It s your very own, very special savings account with no hidden charges or restrictions, while giving you very attractive interest on daily balance, Plus a super-smart plastic in your wallet! Interest bearing deposit account Interest calculated on the basis of daily balance No hidden charges or restrictions apply with regard to interest payment
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No standing in bank branch queues for withdrawal of money Leads you into the smart ... modern world of electronic banking- ATMs, POS terminals, Kiosks etc.

You need to be a student Minimum age 18 years Valid identification document (generally student ID Card) required for opening the account

EBL high performance account is committed to make a difference. You will see your money grow everyday. This account has the security and growth of a Savings account as well as the convenience of a current account-making things easier for you.

Interest calculated on a daily balance Minimum balance required: BDT 20,000 Unlimited cash withdrawal Highest interest rate compared to other similar accounts Available in all branches of EBL No extra terms and conditions apply Interest is paid twice a year

Minimum age: 18 years Citizen of Bangladesh

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Under this scheme, minimum principal amount is Tk. 100,000 (Taka One Lac Only). There is no maximum principal amount limit. Accounts in multiple of Tk. 100,000 (Taka One Lac Only) can be opened. EBL repeat must be kept for a term of 1 year (12 Months)/ 2 Years (24 Months) / 3 years (36 Months). EBL Repeat can be opened by EBL Account Holders only. All payments, principal & interest, shall be paid to the above specified EBL Account only. In case of premature closure, interest will be paid as per the following table: Product EBL Repeat 1 Year No Interest In encashed before 3 Months on interest will be paid If encashed before 6 months, no interest will be paid Interest Rate If encashed after 3 months, interest will be as per prevailing savings account rate If encashed after 6 months, interest will be as per prevailing saving account rate

EBL Repeat 2 Years & 3 Years

In case of early encashment for any of the above tenor, prepaid interest in FD rate will be adjusted from EBL Repeat principal amount. Depositor has to pay income tax or any other tax the government may fix from time to time, as applicable. A system-generated advice will be provided to the depositor which is non transferable. If there is any loan in the name of the depositor(s) with EBL, then EBL shall have the right to adjust the loan amount from the deposit, which has been deposited by the Account Holder under the scheme of EBL Repeat. EBL Repeat Account Holders may take OD facility against EBL Repeat account (maximum 90% of the value). Unless prior written notice is received by the Bank, the Bank will automatically renew the deposit for the same period on the maturity date at the prevailing rate of interest. EBL reserves the right to change/alter/ratify the terms and conditions mentioned here at anytime without prior notice.

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The name of the scheme is EBL Confidence Any citizen of Bangladesh can open this account. This account can be opened in the name of an individual only. Under the scheme account(s) can be opened for a period of 3 (36 Monthly Installments) / 5 (60 Monthly Installments) / 7 (84 monthly installments) / 10 (120 Monthly Installments) years in any denomination at multiple of Tk. 500.00 per month but not exceeding Tk. 20,000.00 per month. Depositor can choose any denomination of deposit per month at the time of opening the scheme, which cannot be changed later on. The rates of interest are: for 3 years: 9.00% per annum; for 5 years: 9.50% per annum; for 7 years: 9.50% per annum; for 10 years: 9.50% per annum. Any benefit from EBL confidence may come under purview of Income Tax of any other levy as decided by the government of Bangladesh. Monthly installments will be automatically realized from the Customer's Personal EBL account linked with EBL Confidence. Deduction of the monthly installments will start from the day of opening EBL Confidence and all subsequent installments will be deducted on the same day of following months. Sufficing available/cleared fund must be kept in the linked account on or within next three days of due date to collect the deposits. If sufficient balance (full value of installment) is not available in the corresponding account for realizing monthly installment in time, Account Holder will have to pay @ 2% on the installment arrear(s) as penalty. In the event of failure to pay monthly installment(s) on or within next three days of the due date, it will be the sole responsibility of the EBL confidence Account Holder to settle the arrear installment(s) before or along with the next deposit due through a written instruction to EBL. If any monthly installment remains unpaid for four consecutive months, the account will be closed automatically. In case of premature closure of the account Tk. 300 (Taka three Hundred Only) will be charged as closing charge. In case of premature closure, the following will be applicable; a. Less than 1 year: self deposited amount without interest; b. More than 1 year but less than 3 years: self deposited amount plus interest @ prevailing savings account interest rate; c. More than 3 years but less than 5 years: matured value of 3 years plus interest @ prevailing savings account interest rate on self deposited amount for fraction period;
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d. More than 5 years but less than 7 years: matured value of 5 years plus interest @ prevailing savings Account interest rate on self deposited amount for fraction period; e. More than 7 years but less than 10 years: matured value of 7 years plus interest @ prevailing savings account interest rate on self deposited amount for fraction period. If there is any loan in the name of the depositor with EBL, then EBL holds the right to adjust the loan amount from the deposit which has been deposited by the by the EBL confidence Account Holder for deposit under the scheme of EBL Confidence. These terms and conditions shall be governed by and construed in accordance with the laws of Bangladesh and the customer and the Bank is hereby irrevocably submit to the non-exclusive jurisdiction of the Courts of Bangladesh. EBL reserved the right to change/alter/ratify the terms and conditions at any time without prior notice. Maturity Value Table Installment Amount Tk. 500 Tk. 1,000 Tk. 2,000 Tk. 5,000 Tk. 10,000 Tk. 20,000 Pre-tax Maturity after 3 Years Tk. 20,730.68 Tk. 41,461.36 Tk. 82,922.72 Tk. 207,306.80 Tk. 414,613.60 Tk. 829,227.20 Pre-tax Maturity after 5 Years Tk. 37,994.91 Tk. 75,989.82 Tk. 151,979.64 Tk. 379,949.10 Tk. 759,898.20 Tk. 1,519,796.40 Pre-tax Maturity after 7 Years Tk. 59,800.58 Tk. 119,601.16 Tk. 239,202.32 Tk. 598,005.80 Tk. 1,196,011.60 Tk. 2,392,023.20 Pre-tax Maturity after 10 Years Tk. 100,328.37 Tk. 200,656.74 Tk. 401,313.48 Tk. 1,003,283.70 Tk. 2,006,567.40 Tk. 4,013,134.80

Note: In case of there installment, multiple of Tk. 500 & Tk. 1,000, will follow the matured value as specified in this table. For example, if installment is Tk. 2,5000 for 3 years tenor maturity value will be Tk. 20,730 X 5 times (Tk. 2,500/500) and if installment is Tk. 7,000 for 3 years tenor maturity value will be Tk 41,461 X 7 times (Tk. 7,000/1000).

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Double Return of the initial deposit amount on maturity after six years (including tax). Minimum opening amount BDT 100,000. EBL Savings accounts is mandatory to open "EBL Just Double". If any depositor intends to withdraw his/her deposit before maturity, the following rules will apply: No benefit including interest will be given for pre-mature encashment within one year.  If the deposit is encashed after one year (& before maturity date) the depositor shall get Interest Rate @ 8% up to the encashment date. Customers can take secured loan/OD facility up to 90% of the initial deposited amount. The lending rate will be tied up with the interest rate offered in EBL Just Double (i.e. 12.25%+3%). Existing fees/charges/regulations for availing the facility will be applicable. 

Information that we should know The name of the scheme is "EBL Secure Deposit Protection Scheme". EBL Secure DPS is a monthly recurring savings scheme with full maturity value insured in case of death of the depositor due to any cause (excluding Pre-existing conditions/disability, Suicide, AIDS, assault or murder, war or warlike situation etc. details of which is available in the master group insurance policy). Any citizen of Bangladesh aged 18-55 years can open this account. This account can be opened in the name of an Individual only. To open EBL Secure, the applicant must have a Current/Savings account at EBL. Under this scheme, accounts can be opened for a period of 5 Years (60 monthly installments) only. Monthly installments can be opened in any denomination of Tk. 500 per month but not exceeding Tk. 13,000 per month in total. A person can open multiple deposit schemes but the total monthly deposit shall not exceed Tk. 13,000 per month. Depositor can choose any denomination of deposit per month at the time of opening the scheme which can not be changed later on. Any benefit from EBL Secure my come under purview of income tax or any other levy as decided by the Government of Bangladesh.
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Monthly installments will be automatically realized from the customer s personal EBL account linked with EBL Secure. The deduction of the monthly installments will start from the day of opening EBL Secure and all subsequent installments will be deducted on the same day of following months. If sufficient balance (full value of installment) is not available in the corresponding account of the applicant for realizing monthly installment in time, accountholder will have to pay @2% installment arrear(s) at the time of realization of the next installment. If three consecutive monthly installments are not paid then the scheme will be closed and the account value will be transferred to customer CASA deducting necessary insurance fees and taxes. In-case of pre-mature closure of EBL Secure, Tk. 1,000 (One Thousand Only) will be charged as Closing Fee. If there is any loan in the depositor with EBL, then EBL holds the right to adjust the loan amount from the deposit which has been deposited by the EBL Secure accountholder for deposit under the scheme of EBL Secure. EBL has entered into an agreement with American Life Insurance Company, Bangladesh where EBL Secure DPS maturity value is assured; the depositor shall be bound by the terms and conditions stated in the master group insurance policy and EBL shall not be liable for any claim declined by American Life Insurance Company, Bangladesh.

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Maturity Value Table Monthly Pre-tax Maturity Deposit Value at the end of Amount 5 Years (60 Monthly Installments) 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 6,500 36,973 73,946 110,919 147,892 184,865 221,838 258,811 295,784 332,757 369,730 406,703 443,677 480,650 Monthly Pre-tax Maturity Deposit Value at the end of Amount 5 Years (60 Monthly Installments) 7,000 7,500 8,000 8,500 9,000 9,500 10,000 10,500 11,000 11,500 12,000 12,500 13,000 517,623 554,596 591,569 628,542 665,515 702,488 739,461 776,434 813,407 850,380 887,354 924,327 961,300

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Bank Loan Products

Loan Amount ranges from BDT 50,000 to BDT 1,000,000 ( or 12 times of gross salary, whichever is lower). Repayment tenure of 12, 24, 36, 48 or 60 months. Payment option available starting after minimum 6 months of disbursement of loan. Early full and final settelment allowed. No security required. No hidden charges.

Age : Minimum 22 years, Maximum 60 Years Professional Experience: Salaried Executives : 1 year of experience Self employed Professionals: 2 years of experience Minimum monthly income: Salaried Executives : minimum BDT 15,000 / month Self employed Professionals: minimum BDT 20,000 / month

Loan amount ranging from minimum BDT 50,000 to maximum BDT 150,000 (or 10 times of gross monthly income, whichever is lower) Repayment tenure of 12,24 or 36 months Absolutely no processing fees Special discount in interest rate

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Age : Minimum 22 years, Maximum 60 Years Professional Experience: Salaried Executives : Salaried Executives: 1 year of experience with minimum 6 months employment with current employer Self employed Professionals: 1 years practice in the profession Business: 2 years involvement in current business Minimum monthly income: Salaried Executives : minimum BDT 15,000 / month Self employed Professionals & Businessmen: minimum BDT 20,000 / month

Loan amount BDT 500,000 75,00,000 or 50 times of applicant s Gross Monthly Income, whichever is lower Repayment tenure 3 years to 20 years Attractive Interest rates based on loan amount: Loan Amount BDT 5 Lac to 15 Lac BDT 15 Lac+ to 25 Lac BDT 25 Lac+ to 40 Lac BDT 40 Lac+ to 75 Lac Interest Rate 14.00% 14.25% 14.50% 15.00%

Loan Take-over facility with attractive interest rate option (1% less than existing other Home Loan but not less than 13.5% per annum) Processing fee 1.25% of the loan amount for the fresh applicants and 0% for the take-over loans Loan up to 80% of the property value Advance/Partial Prepayment - Anytime and any amount payment facility available, fee is 1% of the Advance/Partial Prepayment amount. Additional Loan Top up facility available Bangladeshi citizen within age range 22 Years 57 years
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Length of Service/Business: Salaried Executives: Minimum 3 year of experience with 6 month

SME Loan Products

Any legal business purpose, loan facility minimum BDT 200,000 maximum BDT 950,000 No collateral security required Loan tenure 1 month to 6 months Single shot payment at maturity but interest will be realized on monthly basis Partial payment and early payment allowed- no additional fee required

Any successful enterprise with minimum two years in same or relevant business can apply for the loan Business cash flow to support the proposed loan in one shot Necessary documents of business required Bank account in the name of the enterprise or entrepreneurs Personal guarantee required

Any legal business purpose, loan minimum BDT 6,00,000 maximum BDT 50,00,000 Without land/building mortgage To be repaid within maximum 60 months. Loan repayable in monthly installments 50% of the loan amount in the form of fixed deposit is needed.

Any successful enterprise minimum one and a half years in same or relevant
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business can apply for loan. Business income to support the proposed loan installment Necessary documents of business are required Bank account in the name of enterprise or the entreprenuers.

Any business purpose loan from Tk. 200,000 to Tk. 990,000 To be repaid within maximum 24 months (Next loan is repayable within 60 months) No requirment for collateral security Loan repayable in equal monthly installment

Any sole proprietorship, or private limited companies having minimum 1.5 years of successful business operation Monthly cashflow to support the proposed loan installment 2 personal guarantee

Any business purpose loan from Tk. 500,000 to Tk. 5,000,000 To be repaid within maximum 36 months (Next loan is repayable within 60 months) Collateral security required along with charge on business assets Loan repayable in equal monthly installment

Any sole proprietorship, partnership, or private limited companies having minimum 3 years of successful business operation Monthly cashflow to support the proposed loan installment

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Credit facility up to BDT 20,000,000 to any legitimate import business Nil margin LC facility No requirement of land/building mortgage Post import facility up to 6 months 30%-40% of total limit in the form of FD as collateral required Over Draft facility to support day to day general expenses Any legitimate business with three years of operation and at least one year experience in import business Necessary import related documents Business cash flow to support repayment Monthly installment

Credit facility up to BDT 300,000 (three lac) in any legitimate business No requirement of land/building mortgage Yearly interest rate is 10%, which is the lowest in the country Repayable in 18 months Facility is only for Women Entrepreneurs

Any legitimate business with at least two years of operation Business Cash Flow to support repayment
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Monthly installment

Minimum account opening amount BDT 100,000 Minimum deposit requirement for interest earning BDT 100,000 Daily interest bearing and half-yearly interest paying account Free Monthly Statement for the Current Account and Free Half-yearly Statement for the Shubidha Account No Ledger Fee if the Shubidha Account average balance is BDT 100,000 or more; incase of amount less than that a semi-annual ledger fee of BDT 300 will be applicable 24-hour money withdrawal facility at any VISA ATM No Intercity Transaction Fee Up to BDT 10,00,000 Any EBL Branch Banking Facility Internet Banking facility Evening banking facility at selected EBL branches - you can deposit and withdraw money from 6 p.m. to 8 p.m. at these branches

Any legitimate business entity - sole proprietorship, partnership or private limited company, with valid trade license and other documents as per Bangladesh Bank requirements, can open EBL Shubidha.

There are other products like:

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EBL VISA Platinum Card Simple Credit Card Lifestyle Card Cool Card EBL Travel Card Matribhumi Remittance Account

Insurance Company

Pragati Life Insurance Limited is a public limited company registered with the Registrar of Joint Stock Company and licensed by the Controller of Insurance, Govt. of Bangladesh to transact life insurance business in Bangladesh. The Board of Directors of Pragati Life is comprised of a group of dedicated and renowned business entrepreneurs of the country and have already proven their commitment and services in General Insurance through Pragati Insurance Limited. Now, they are committed to do the same with Life Insurance through Pragati Life Insurance Limited. Here you will get professional and expert services with full commitment. You will also be pleased to know that we have Managing Director who is an actuary. With all these resources in hand we are able to provide you efficient service and tailor-made product to meet your needs. Our attention is always focused on the individual client and his special needs. Furthermore, we are continuously developing IT aids and expert systems to carry on our life insurance business efficiently. We are available to deal with all your questions concerning these new products. And as we have entered into a new millennium, we will keep you informed about new trends and developments in the life insurance industry worldwide.

The Products of Pragati Life Insurance are described as below: MOTOR INSURANCE POLICY: According to Motor Vehicles Act 1939 the owners of vehicles must insure their vehicles against liability to third party for death or loss injury and damage to third party property.
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Two types of covers are granted: a) Act Liability policy/public Liability :-This policy provides indemnity to the insured against legal liability for claims by the third party in respect of accidental personal injury &/or damage to any property of third party property covered by the insured vehicles in public place as is necessary to meet the requirements of section 95 of the Motor Vehicles Act 1939. Increased limit of liability is also provided in respect of public liability policy.

b) Comprehensive Insurance Policy:- This policy provides cover against loss or damage to the insured vehicle by accidental external means or malicious act, Fire, External Explosion, Lightning Self ignition, Burglary, Housebreaking and Theft. Also whilst in transit by Road, Rail inland waterway, lift, elevator or air. Subject to the limitations mentioned in the policy and liability to public risks including Act liability. ENGINEERING INSURANCE Company also underwrites following special types Engineering insurance:1. Erection All Risks; 2. Marine-cum-Erection All Risk; 3. Contractor All Risks; 4. Boiler Insurance; 5. Deterioration of Stock 6. Machinery Breakdown 7. Computer and Electronic Data Processing Machineries. The salient features in respect of the above Insurance are given hereunder:MEDICAL INSURANCE: OVERSEAS MEDICLAIM (OMP) INSURANCE: Overseas Medic aim is Medical and Sickness insurance arising when the insured is traveling/staying outside Bangladesh. The benefit payable under the insurance will be paid directly to the insured person who sustains the loss or at the request of the insured be paid directly to the hospital or individual rendering the services. Coverage is on month basis, with the premium being calculated on rating subject to age and plan. Pragati Insurance Limited issues two types of overseas Medic aim Insurance viz.

(1) Business and Holidays and (2) Employment/Studies.
MARINE CARGO INSURANCE Bangladesh Marine Cargo Insurance policy is in line with the recommendations of the United Nations Conference on Trade And Development (UNCTAD) making the revised wording of the Institute Cargo Clause (ICC) mandatory from 31-3-1983. With the introduction of new policy
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form the century old policy form and perils have been withdrawn and replaced by ICC(A), ICC(B) & ICC(C) clauses respectively. The new ICC apart from being worded in simple English, have more conceptual clarity in approach. The basic approach is to define the terms and conditions in such a manner that the scope for disputes is minimized, whereas new ICC(A) provides "All Risks" cover with named exclusions, the new ICC(C) covers the named risks with exclusions. The new ICC(B) is an intermediate cover with extended named risks and named exclusions. The nature of the risks covered under the THREE Institute Cargo Clauses are drawn as under.-

RISKS Loss or damage reasonable attributed to : Fire or explosion

ICC(A)

ICC(B)

ICC(C) Covered Covered Covered Covered Covered Covered Covered Covered Covered

Vessel or Craft being stranded, grounded. sunk or capsized. Overturning or derailment of Land conveyance.

Collision or contact of vessel, craft or Conveyance with any external Covered Covered Covered object other than water. Discharge of Cargo at port of distress. Earthquake, volcanic Eruption or lightning Loss or damage caused by: General Average Sacrifice Jettison Washing overboard Entry of sea, Lake or river water into vessel, Craft hold Conveyance, Container, Lift Van or place of storage. Covered Covered Covered Covered Covered Covered Covered Covered Covered Covered NotCovered NotCovered Covered Covered Covered Covered Covered NotCovered

NotTotal loss of any package lost overboard or dropped whilst Loading Covered Covered Covered to or unloading from vessel or craft. Other risk such as Breakage, Scratching, Splitting, hooks, Holing, tearing, bursting, loss of contents, damage to the containers, Fresh, Notrain water damage, Heating and extraneous substances, theft, Covered Covered Covered pilferage & non-delivery & other risks not specially excluded in the ICC A" clauses.
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The Company also grants wider cover like Theft, pilferage and non-delivery (TPND) with ICC(C) on payment of additional premium as per tariff. Anyone or all the perils mentioned below may be obtained with ICC(B) on payment of additional premium. Breakage, Scratching/Splitting, hooks, holing, bursting, tearing, leakage, Fresh, rain water damage, theft pilferage & non-delivery. The following additional perils are automatically covered under the new Marine Policy :(1) 60 days cover at sea port from the date of discharge from the ship under "A" "B" & "C" (2) Inland transit by Road, Rail &/or Berge. (3) WAR & SRCC covers are available on payment of additional premium. MISCELLANEOUS/ACCIDENTS INSURANCE: Common types of miscellaneous insurance covers Theft, Burglary, Cash-in-Transit, Cash-in-safe, Fidelity Guarantee, Public Liability, Product Liability, Personal Accident; Household Comprehensive Insurance is available on attractive rates and terms. Rates and terms are quoted on request. Besides, Group Accident covers are available in addition to individual and personal accident policy. Travel Insurance forms part of this category. Their Other Products are:

1. 2. 3. 4. 5.

Individual Product Line Group Insurance Health Insurance Pragatibima Islami Deposit Pension Scheme (IDPS)

Reference
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Pragati Life Insurance Company, Designed & Hosted by Webmaster of Pragati Life Insurance Ltd. © 2005-2006,Pragati Life Insurance Ltd. All rights reserved. Retrieved on April 9, 2010 from Http//: www.pragatilife.com

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Eastern Bank Ltd. Copyright © Eastern Bank Limited. Authorized financial services provider Retrieved on April 9, 2010 from Http//: www.ebl-bd.com

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