Course Code:231: Course Title: Law and Theory of Banking

Course code:231
COURSE TITLE: LAW AND THEORY OF

BANKING
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Executive Summary
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Table of Contents
Introduction .............................................................................................................................. 4
Background.......................................................................................................... 4
Company Profile ................................................................................................. 6
Vision .................................................................................................................... 7
Mission ................................................................................................................. 7
Objectives ............................................................................................................. 7
Policies .................................................................................................................. 8
Goal of Bank Asia Limited ................................................................................. 8
Strategic Plan of Bank Asia Limited ................................................................. 9
Core Values of Bank Asia Limited .................................................................... 9
Features of Bank Asia Limited .......................................................................... 9
Corporate Culture of Bank Asia Limited ....................................................... 10
Principal Activities of Bank Asia Limited ...................................................... 11
Corporate Social Responsibilities .................................................................... 11
Product & Services of Bank Asia Limited ...................................................... 12
Deposit Products ............................................................................................... 14
Investment Products ......................................................................................... 15
SME Banking of Bank Asia ............................................................................. 19
Departments & General activities of Bank Asia Ltd. .................................... 25
Corporate Structure: ........................................................................................ 26
Management and Organizational Structure .................................................. 27
SWOT Analysis of Bank Asia Limited. .......................................................... 28
Conclusion.......................................................................................................... 30
References .......................................................................................................... 30
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Introduction
Generally, by the word “bank” we can easily understand that the financial institution dealing
with money. But there are different types of banks like Central Banks, Commercial Banks,
Savings Banks, Investment Banks, Industrial Banks, and Co-operative banks etc. But when we
use the term “bank” without any prefix or restriction, it refers to the Commercial Banks.
Commercial Banks are the primary contributors to the economy of a country. So, we can say
that, Commercial Banks are a profit-making institution that collects the deposits from the
surplus unit of the society and then lend the deposits collected to the deficit unit of the society.
So, the people of the society and the government are very much dependent on the commercial
banks as the financial intermediary. As banks are profit-earning concern they collect deposits
at the lowest possible cost and provide loans and advances at higher.
Banking sector is expanding its hand in different financial events every day. At the same time
the banking process faster, easier and the banking arena is becoming wider. As the demand for
the better service increases day by day, they are coming with different innovative ideas and
products. In order survive in the competitive field of the banking sector, all the banking
organizations are looking for better service opportunities to provide their fellow clients. As a
result, it has become essential for every person to have some idea on the bank and banking
procedure.
Bank Asia Limited was incorporated in Bangladesh as a banking company. I have prepared my
report on of Bank Asia Limited.
Background
Bank Asia Limited is a schedule commercial bank in the private sector established under the
Bank Company Act 1991 and incorporates in Bangladesh as a public limited company under
the Companies Act 1994 to carry out banking business in Bangladesh. Bank Asia Limited
acquired the business of Bank of Nova Scotia, Dhaka in the year 2001 and the beginning of the
year 2002 the Bank also acquired the Bangladesh operations of Muslim Commercial Bank
Limited (MCBL), a bank incorporates in Pakistan, having two branches at Dhaka and
Chittagong with one booth at Dhaka. In taking over the Bangladesh operations, all assets and
certain specific liabilities of MCBL have been taken over assumed by Bank Asia Limited. The
Bank carries its banking activities through 73 branches including fifteen branches & three SME
centre in Chittagong & three MCBL branches in the country.
Bank Asia is expecting to concentrate on efforts to set high standards for quality of service at
all levels. The management of Bank Asia is determined to maintain and upgrade the quality of
their resources through continuous training and up gradation of technology to keep pace with
market demands, new developments and practices of the competitors.
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The economy of Bangladesh has been encountering a quick development since the 90's.
Modern and horticultural advancement, universal exchange, inflow of ostracize Bangladeshi
laborers' settlement, neighbourhood and remote interests in development, correspondence,
power, sustenance preparing and benefit venture introduced a period of financial exercises.
Urbanization and way of life changes simultaneous with the financial advancement made an
interest for managing an account items and administrations to bolster the new activities. A
gathering of exceedingly acclaimed agents of the nation assembled together to react to this
need and set up Bank Asia Constrained in the year 1999.
The Bank Asia consolidated as an open constrained organization under the Organizations
Demonstration. 1994. The bank began its business operation on November 1999 with an
approved capital of Tk.800 million and paid up capital of Tk.218 million. The paid-up capital
of the bank remained at Tk.1116 million as on 31st December 2006.
Inside a limited ability to focus time Bank Asia has set up itself as one of the quickly developing
neighbourhood private banks. It has at present a system of 26 branches serving a significant
number of the main corporate houses and is step by step moving towards retail keeping money.
Its other huge conveyance channel is the mutual ATM System. Bank Asia has 25 ATMs as an
individual from ETN alongside eleven different banks. Since its modest starting in 1999, it set
turning point by securing the business operations of the Bank of Nova Scotia in Dhaka, first in
the managing an account history of Bangladesh. It again rehashed the execution by obtaining
the Bangladesh operations of Muslim Business Bank Ltd. (MCB), a Pakistani bank. A year
ago, the Bank again went to the spotlight with over membership of the First sale of stock of the
shares of the Bank, which was a record (55 times) in our capital business sector's history and
its shares summons respectable premium.
The benefit and obligation development has been surprising. By December 2006 the aggregate
resource of the Bank developed to Tk. 30,478 million, increment of very nearly 30%
contrasting with 2005. As of December 2006, stores expanded to Tk. 25,289 million, an
expansion of 37% over that of 2005, and Advances achieved Tk. 22,255 million, an expansion
of 25% over that of the year 2005.
Bank Asia has been effectively taking part in the nearby currency market and also outside coin
market without presenting the Bank to powerless positions. The Bank's interest in Treasury
Bills and different securities went up discernibly opening up open doors for improving salary
with regards to an administration of steady loan fee decay.
Bank Asia is keeping up its aggressiveness by utilizing on its Web saving money Programming
and current IT framework. It is the pioneer amongst the nearby banks in presenting inventive
items like SMS managing an account, and under the ATM Organize the Stelar Web Keeping
money programming empowers direct connecting of a customer's record, without the
prerequisite for a different record.
Bank Asia has effectively settled a straightforward procedure of enrolment looking for the best
ability. In its endeavours towards consistent improvement of the HR of the Bank, it
masterminds preparing programs consistently.
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Bank Asia has so far been highly successful in keeping its customers satisfied with its high-
quality service, while continuing its expansion to reach more people around the country. Bank
Asia conducts all types of commercial banking activities. The Bank is involved in most of the
areas of commercial banking operations. The core business of the Bank comprises of trade
finance, term finance, working capital finance and corporate finance. Bank Asia has acted as
the lead arranger in raising term loan for a number of projects under syndicated finance and
also participated in some cases under such financing arrangement. The Bank is also providing
personal credit, service related to local and foreign remittances and several other products. The
“Personal Credit” scheme of the Bank, which is designed to help the fixed income group in
raising standard of living is competitively priced and has been widely appreciated by the
customers. Bank Asia’s program under “Poverty Alleviation Scheme” delivered through rural
branches in the form of micro credit is playing an important role towards socio economic
development of the poor people in the rural areas.
The management of Bank Asia is determined to maintain and upgrade the quality of these
resources through continuous training and upgrading technology to keep pace with market
demands, new developments and practices of the competitors. Bank Asia entered the market at
a time when economic policy environment of the country is poised for higher level of business
activities and growth. The prevailing macroeconomic management and the government’s
determination to carry on reforms in the banking sector provide a supporting and encouraging
environment.
Company Profile
Name of the company: Bank Asia Ltd.
Bangladesh Head Office: Rangs Tower (2nd to 6th Floor) 68, Purana Paltan Dhaka-1000.
Year of Establishment: November 27, 1999
Industry: Banking industry.
Shareholder’s Information: 14,402 total shareholders. Of which 25 Sponsors and Directors,
13,857 General Public, 2 Foreign Investors, 119 Investment Companies, 277 Institution and
122 non-resident Bangladeshis.
Branches: 102 branches.
Subsidiary companies: 2 in abroad which are ‘BA Exchange Company (UK) Limited’ in
London, United Kingdom established on May, 2011 and ‘BA Express USA Inc.’ in Jamaica,
New York, USA established on June 01, 2014 and 1 in Bangladesh ‘Bank Asia Securities
Limited’ established on March 16, 2011.
Foreign Correspondents: it has 657 foreign correspondents in 165 countries.
Exchange Houses: 45 exchange House in 9 countries as foreign remittance channeling partner.
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Bank Ranking: World Rank 2,504, Country Rank 17(Rated by Bankers Almanac)
Revenue: Profit after tax 2573.92 (in Millions)
Slogan: For a Better Tomorrow.
Corporate Website: http://www.bankasia-bd.com
Logo:
Vision
Bank Asia's vision is to have a poverty free Bangladesh in course of an era in the new thousand
years, mirroring and establishing the national dream to the full extent. The vision is to fabricate
such a society where human nobility and human rights get the most elevated thought alongside
lessening of destitution.
Mission
The Core Missions of Bank Asia are-
• To help with conveying excellent support of our clients and to take part in the
development and extension of our national economy.
• To set elevated expectations of honesty and convey all out fulfilment to our customers,
shareholders and workers.
• To turn into the most looked for after bank in the nation, rendering innovation driven
creative administrations by our devoted group of experts.
Objectives
The pivotal objectives of Bank Asia are given below,
❖ To mix in its operations conventional managing an account with present day worldwide
administrations.
❖ To encourage its partners with elevated requirement and quality managing an account.
❖ To conduct outside trade business, for example, universal cash settlement
administration thus on and in national.
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❖ To degree credit office to the customer.
❖ To give standard and speedy administrations into the customer.
❖ To degree custodial administrations, for example, locker.
❖ To degree general saving money administrations to the customers.
❖ Buying and offering of remote monetary standards.
Policies
Bangladesh is making a decent attempt and putting its soul to try to be a productive player in
the worldwide business sector as far as business. As needs be, Bank Asia Constrained will as
an issue of arrangement, assembled its money related, non-monetary and human asset in
congruity with global standards, principles and practices. In the residential monetary field Bank
Asia Restricted has set its sight on giving its customer base the edge of keeping money and
fund which will empower then to run their undertakings benefit. Bank Asia Constrained give
a hand the client with its innovation, know how preparing and specialization, and will give
world class managing an account framework.
Goal of Bank Asia Limited
Sustainable growth: Synergies between new knowledge and human capital for
sustainable economic growth.
Capital stewardship: Preservation and enlargement of multiple forms of capital,

like intellectual, natural, financial, organizational, social; all of which contribute to long
term value creation.
Accelerating financial inclusion: Accelerate progress towards financial

inclusion with technology like ATM, mobile phone, smart card-based banking services
and renewable energy generation projects especially in rural areas.
Differentiating Value Added Services: Strong focus on extremely cost-

efficient and green services through Internet Banking, electronic fund transfer,
automated cheques clearing, e-bank statement, SMS alert etc.
Going Green: Quantification of in-house facilities and energy consumption to

promote paperless office and enhance energy efficiency. Greater emphasis on green
banking projects.
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Strategic Plan of Bank Asia Limited
➢ To manage and operate the bank in the most efficient manner to enhance financial
performance and to control cost of fund.
➢ To strive for customer satisfaction through quality and control and delivery of timely
services.
➢ To identify customers credits and other banking needs and monitor their perceptions
towards our performance in meeting these requirements.
➢ To review and update policies, procedure and practices to enhance the ability to expand
better services to customers.
➢ To train and develop all employees and provide them adequate resources so that
customers’ need can be responsibly addressed.
➢ To promote organizational effectiveness by openly communicating company plans,
policies, practices and procedures to all employees in a timely fashion.
➢ To cultivate a working environment that fosters motivation for improved performance.
➢ To increase direct contact with customers in order to cultivate a close relation between
the bank and its customers.
Core Values of Bank Asia Limited

Place customer interest and satisfaction as first priority and provide customized banking
products and services
Value addition to the stakeholders through attaining excellence in banking operations
Maintain high ethical standard and transparency in dealings
Be a compliant institution through adhering to all regulatory requirements
Contribute significantly for the betterment of the society
Ensure higher degree of motivation and dignified working environment for our human
capital and respect optimal work-life balance
Committed to protect the environment and go green
Features of Bank Asia Limited
• Bank Asia Limited is engaged in conventional commercial banking. It is also

introducing banking functions on Islamic Banking Principles.
• It is the pioneer in introducing and launching different customer friendly deposit
schemes to tap the savings of the people for channelling the same to the productive
sectors of the economy.
• For uplifting the standard of living of the limited income group of the population, the
Bank has introduced Consumer Credit Schemes by providing financial assistance in the
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form of loan to the consumers for procuring household durables, which have had
encouraging responses.
• The Bank is committed to continuous research and development so as to keep pace with
modern banking.
• The operations of the Bank are computer oriented to ensure prompt and efficient
services to the customer.
• The Bank has introduced camera surveillance system (CCTV) to strengthen the security
services inside the Bank premises.
• The Bank has introduced customer relations management system to assess the needs of
various customers and resolve any problem on the spot.
Corporate Culture of Bank Asia Limited
Environment
While conducting due diligence on requests for credit facilities, Bank Asia Limited will strive
to ensure that environmental impacts are appraised with the same care as any other business
factors. To the extent deemed practical, Bank Asia Limited will raise and recommend
compliance with local environmental laws to all its borrowing relationships. They firmly
believe in long-term sustainable development, and investment decisions will only be supported
when the bank is convinced, taking into account all relevant feedback, that any adverse
environmental impact will be minimal or will be avoided altogether.
Teamwork
Teamwork and co-operation is an important aspect of the work ethics in Bank Asia Limited.
They leverage on the dynamics of their collective skills, knowledge and experience to achieve
the best for their customers. Bank Asia Limited views its employees as its greatest asset and
recognizes the pivotal role that meritocracy plays in setting rewards and penalties for.
Work Place Ethics

• Fortified Service Rule 18 Bank Asia Ltd.
• Fortified Code of Conduct
• Fortified Policies
Diversity
Bank Asia Ltd. respects all employees as unique individuals with fundamental human rights
and supports the cultural and ethnic diversity of its workforce. It is their belief that creating a
work environment that enables them to attract, retain and fully engage diverse talents leads to
enhanced innovation and creativity in their services. Bank Asia Ltd takes all allegations of
harassment seriously, including sexual, communal etc and prohibits all forms of discrimination.
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Principal Activities of Bank Asia Limited
The principle activity of the bank is banking. The committed principles activities are as follows:
• Outstanding customer service.
• Effective and efficient operations.
• Strong capital and liquidity.
• Prudent lending policy.
• Strict expense discipline.
• Reliable and committed employees who make lasting customer relationships and
international teamwork easier to achieve support the business principles.
• National Bank Limited also operates according to certain key business values.
• The highest personal standards of integrity at all levels.
• Commitment to truth and fair dealing.
• Hands-on management at all levels.
• Commitment to quality and competence.
• A minimum of bureaucracy.
• Fast decisions and implementation.
• Putting the team’s interests ahead of the individuals.
• The appropriate delegation of authority with accountability.
• Fair and objective employer
Corporate Social Responsibilities

Bank Asia has been conscious of corporate social responsibility from the very beginning of
its operation in 1999. The Bank looks beyond short-term quantitative gains and concentrates
on issues which make the financial institution socially responsible and thus expects a
sustainable balanced growth.
Bank Asia has three major CSR programs. These are as follows:
• Higher Study Scholarship
• Ophthalmological Operation
• Operating Computer Learning Center
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Product & Services of Bank Asia Limited
Bank Asia Limited offers a wide range of product and services to their customer. They offer
following products and Services-
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Deposit Products
Bank Asia Islamic Banking offers different attractive deposit products under Al-Wadiah and
Mudaraba Principle, which is designed to fulfil Shariah Compliance and provides you the
maximum convenience & security including reasonable profit, where applicable.
Al- Wadiah Current Account:
❖ Initial Deposit: Minimum Tk. 5,000/-

❖ Profit is not applicable on deposit
❖ Cheque-book facility
❖ Transfer of fund on Standing Instruction Arrangement
❖ Collection of cheques through Clearing House
❖ Free Online Banking service all over the country
❖ Bank Asia ATM Card Service
Mudaraba Special Notice Deposit Account (MSNDA):

❖ Profit calculation on daily balance basis (any amount)
❖ Present Income sharing Ratio (ISR)- Client : Bank :: 35 : 65
Mudaraba Savings Account (MSA):

Features
❖ Profit calculation on daily balance basis (any amount)
❖ No restriction/ ceiling on number of withdrawals in a week/month
❖ Present Income sharing Ratio (ISR)- Client : Bank :: 45 : 55
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Mudaraba Term Deposit Accounts (MTDA) of Different Tenure
Features
❖ Minimum Deposit: Tk. 25,000/-
❖ Tenure: 1, 2, 3, 6, 12, 24, 36 months
❖ Quard facility Maximum 80% of (subject to the principal amount reaches
minimum Tk. 1,00,000/-)
❖ Present Income sharing Ratio (ISR)- is as follows:
Different Tenure of Mudaraba Term Deposit Present Income Sharing
Accounts (MTDA) Ratio (ISR)
Bank Client
MTDA – 1 months 25% 75%

MTDA – 1 year 14% 86%
MTDA – 2 years 15% 85%
MTDA – 3 to 5 years 15% 85%
Investment Products
Modes of our investment of our Islamic Banking provide you the opportunity to run &
expand your business in Shariah compliant way. At present, we are covering different sectors
of investment under the different shariah compliant modes like Bai Murabaha Muajjal, Hire
Purchase Shirkatul Melk (HPSM), Musharaka etc.
Sectors for Investment under Islamic Banking

Bank Asia Islamic Banking provides the opportunity to run & expand the business of its
client in Shariah compliant way through its different investment products. At present, the
Bank is offering investment facilities in the following sectors
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❖ Working capital Finance
❖ Term & Project Finance
❖ Foreign Trade Finance
❖ House Finance
❖ Car Finance
❖ Consumer Finance
❖ SME Finance
To provide investment facility in the said sectors the Banks follows different kinds of
investment modes
❖ Bai Murabaha Muajjal
❖ Hire-Purchase Under Shirkatul Melk (HPSM)
❖ Musharaka
❖ Quard against Accepted Bills
❖ Quard against Deposit
Bai Murabaha Muajjal

Bai-Murabaha is a mode of trade permitted by Shariah (Islamic Jurisprudence). At present
Islamic Banks mostly use this mode as one of their modes of Investment / Credit. Bai-
Murabaha means sale at a profit or mark up sale. Under this mode, Bank purchases certain
goods indented by its client and sells the same to him/her at a profit. One of the fundamental
features of Bai-Murabaha is that under this mode the purchaser shall have the right to know
the cost price of the goods from the seller. In other words the seller (Bank) must declare the
amount of cost of the goods and profit thereon distinctively. Deferred mode of payment is
known as Muajjal. Therefore, our financing under the captioned mode deferring the payment
with instant delivery of the goods is termed as Bai-Murabaha Muajjal.
Other Products & Services

Bank Asia is a new entrant in the private banking sector of Bangladesh. It is committed to
provide flexible services to its customers for their maximum benefit & higher satisfaction.
Gradually Bank Asia increases its product list for our valuable customers we are offering some
products & schemes mentioned below-
Savings account Foreign Currency account
DPS- Deposit Pension Scheme Current account
MB+ FDR
STD- short term deposit DB+
Technology at the Core of Banking Services

Bringing 37 branches under one umbrella, introducing SMS Banking, Internet Banking and
interfacing ATM Network through the Stelar Online Banking software has been major
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achievements during the year. Consequently, our customers are enjoying services from
anywhere anytime. Bank Asia is the first Bank to on-line the rural branches.
Overcoming the Challenges

The IT team had to overcome a host of challenges posed by the legacy system. A new IT team
had to be developed and thorough system analysis had to be undertaken to chalk out a smooth
transformation plan. The users had to be retrained and workshop had to be arranged for other
personnel for familiarizing with the new system. The latest software in use has created the
platform for the Bank to embark on more value-added services. The strategy of gradually
relying on alternative delivery channels has enabled the Bank to make optimum usage of its
manpower.
ATM
Apart from its seventeen branches, Bank Asia’s other significant delivery channel is the shared
ATM Network. Bank Asia customers have access to 21 ATMs as a member of ETN. Under the
ATM Network the Stelar Online Banking software enables direct linking of a client’s account,
without the requirement of a separate account. The Bank is also in the process of setting up its
own ATM Network with a view to providing retail banking services.
Internet Banking
Bank Asia has been a pioneer amongst the local banks in introducing Internet Banking and
intends to maintain the lead with enhanced facilities through this channel. Now a client can get
access to real time account information through the Internet.
m-Banking
Mobile banking is turning out to be the next potential outlet for financial services products.
During the year the Bank extended its SMS Banking facilities (balance enquiry and alert
message) to cover the CityCell and GrameenPhone customers. In the next phase we are
working towards utility bill payment, account to account money transfer and more through the
mobile phone.
Business Intelligence
In today’s dynamic and competitive banking environment, taking the accurate decision at the
right time requires appropriate information. In this respect we are gradually developing the
business intelligence capability of the Stelar Software which we foresee would be critical in
maintaining our edge and navigating the Bank’s services in the right direction.
IT Support
Stellar has been developed and customized by ERA-InfoTech Ltd. – a Joint Venture IT
Company set by ETA-InfoTech of Dubai, Bank Asia and RANKS-ITT. Adequate number of
system/business analyst and programmers are dedicated towards development / customization
of the software and after sales service. ERA-InfoTech has arrangement for continuous
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updating of technology, programming and management skill. The Company enjoys the
technical support from ETA-InfoTech, UAE.
Money Laundering Risk

In order to combat money laundering risk, Bangladesh Bank preached the awareness of money
laundering issues across the country especially the rural areas and selected some banks for
certain areas for spreading the awareness. Bank Asia was selected for Kishoregonj district and
the bank organized two-day long workshop where 83 participants from 80 branches of different
banks participated. More manpower was shaped during the year within the Bank to strengthen
the compliance system, and Branch Compliance Officers designated in all the branches are
independently reviewing and verifying the account transactions to locate any suspicious
transaction. An updated Anti Money Laundering Manual was prepared and distributed to all
the branches. In addition, the Department began an audit on Anti Money Laundering
compliances in the branches. Transaction profiles of our customers are embedded into the
Stellar Online Banking Software which helps in preventing illegal transactions.
Customer Service
Customer Service Department is comparatively a new department in the contemporary banks.
An efficient CSD can give a bank or a branch an extra edge against the competitor banks. The
main reason to set up Customer Service Department is to maintain interaction with the
existing and potential customers. Customer Service determines the level of long-term success
in business. It helps a company in maintaining current customers as well as gaining new
customers.
From this department, I have learnt how to retain good relation with the customer. A banker
should be careful about the following things–
Customers are the reason for the work
Warm and friendly responses
Customer wants to feel important
Listen the customer requirements
Apologize to him for doing any mistake
Say “No” positively
Keeping cool when customer gets hot
Although bank is always customer focused and tries to gain new prospective customers, one
more thing should be kept in mind which is the Money Laundering Case. As a result of money
laundering activities in Bangladesh, the government is annually losing a huge sum of revenue.
At the same time, the laundering activity is distorting the market mechanism and competitive
economy in the country. In order to curb down money laundering activities, Bangladesh Bank
now a day enforces some additional rules in case of opening new account.
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Online Banking by Bank Asia
1. Any Branch Banking:
Cash Withdrawal
Cash Deposit
Cash Transfer
2. Internet Banking:
View the balance & withdrawal amount of account through internet
Print necessary information from internet
Watch the balance of account from any part of the world
3. ATM Facilities
24 hours cash withdrawal facilities
Pay utility bills
Available at 20 places in three main cities of the country
4. SMS Banking:
Know the account latest position through SMS using mobile
Alert messages
Promotional messages
Wish messages
SME Banking of Bank Asia
Sondhi - Secured Trading

Eligibility:
❖ Minimum two years business operation.
❖ Valid Trade License.
❖ Relevant pre-requisites as desired by the bank from time to time.
Loan Limit:
❖ Term loan Tk 8.50 lac to Tk 50.00 lac for trading concerns.
Rate of Interest:
❖ Attractive rate of interest.
Key Features:
❖ Designed to meet financing need for business expansion and for
purchase of fixed of assets
❖ Resident/ commercial/ industrial property/ encashable securities are
accepted collaterals.
❖ Eligible entities: Sole Proprietorship Firms, Partnership Firms, Private
limited Companies
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Shombridhi - Secured Manufacturing
Eligibility:
Loan Limit:
❖ Term loan Tk 8.50 lac to Tk 50.00 lac for trading concerns.
Rate of Interest:
Key Features:
purchase of fixed of assets.
❖ Resident/ commercial/ industrial property/ en-cashable securities are
limited Companies.
Sheba - Secured Service

Eligibility:
Loan Limit:
❖ Term loan Tk 8.50 lac to Tk 50.00 lac for service concerns.
Rate of Interest:
Key Features:
❖ Resident/ commercial/ industrial property/ encashable securities are
limited Companies
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Somadhan - Secured
Eligibility:
Loan Limit:
❖ Over Draft facility Tk 5.00 lac to Tk 50.00 lac for Trading/
Manufacturing & Service concerns.
Rate of Interest:
Key Features:
❖ Designed to meet financing need for business expansion.
❖ Resident/ commercial/ industrial property/ en-cashable securities are
limited Companies
Subidha - Unsecured Trading

Eligibility:
Loan Limit:
❖ Term loan without collateral Tk 2 lac to Tk 8 lac for trading concerns.
Rate of Interest:
Key Features:
❖ Three personal guarantors acceptable to the Bank and society.
limited Companies.
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Sristi - Unsecured Manufacturing
Eligibility:
Loan Limit:
❖ Term loan Tk 2 lac to Tk 8 lac for manufacturing / production
concerns.
Rate of Interest:
Key Features:
limited Companies
Shofol - Unsecured Service

Eligibility:
Loan Limit:
❖ Term loan unsecured and secured Tk 2 lac to Tk 8 lac for service
concerns.
Rate of Interest:
Key Features:
limited Companies.
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Utshob - Seasonal Business
Eligibility:
Loan Limit:
❖ Term loan unsecured and secured Tk 2 lac to Tk 8 lac for all concerns.
Rate of Interest:
Key Features:
❖ Designed to meet financing need for emergency business expansion
during the festival / season.
limited Companies.
❖ Single Instalment loan (monthly interest payable).
Subarno - Women Entrepreneur

Eligibility:
Loan Limit:
❖ Term loan without collateral Tk 2 lac to Tk 8 lac for all Women
Entrepreneurs from any sector.
❖ Term loan with collateral above Tk. 8 lac to 50 lac all Women
Entrepreneurs from any sector.
Rate of Interest:
Key Features:
❖ For unsecured three (3) personal guarantors acceptable to the Bank and
society.
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❖ For secured limit resident / commercial / industrial property/ en-
cashable securities are accepted collaterals.
limited Companies
Locker Service
Beauty & Discretion
Bank Asia brings to you a very user-friendly locker service that is a fine blend of security and
confidentiality. At the same time for sheer convenience and further security we have also
made arrangements for a well-appointed rest room where you can beautify yourself, wear
your jewellery before you step out for your appointment or you may also take your own time
to go through your valuable documents in absolute discretion.
Ideally located to suit you
o Gulshan Branch, Dhaka
o MCB Banani Branch, Dhaka
o Uttara Branch, Dhaka
o Sylhet Main Branch, Sylhet
o MCB Sk. Mujib Roab branch, Chittagong
o CDA Avenue Branch, Chittagong
Utmost Security
Lockers are made by world famous Godrej Steel Company Armed with agile guards round
the clock. To optimize protection we have ensured strong, heat-resistant concrete and steel
vaults. Anti-burglary alarm system. Highly advanced, ceiling backed smoke sensor device.
Protection against Salt Petre and dampness.
Service Hours
Terms & Conditions
Locker services require a nominal fee payable yearly. Customer friendly rules and regulations
modified to suit the widest range of requirements.
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Charges
Locker Size Yearly Charge(Tk) Security

Money(Refundable)
Large 6000 6000
Medium 4000 4000
Small 3000 3000
Departments & General activities of Bank Asia Ltd.

Banking services of Bank Asia Limited are operated through three main divisions. These are
as follows:
 General Banking
 Credit/ advances
 Foreign Exchange
General Banking: It includes-

 customer services
 cash
 accounts
 remittance and
 clearing
Credit Department: Lending money to the potential and genuine borrower is another
classic function of Bank Asia limited and it has a number of schemes of lending.
Functions of credit department:

 Loans and Advances
 Locker Service
Foreign Exchange:
Foreign exchange division is the most lucrative in the banking arena. By the term foreign
exchange, it is meant that the conversion of one currency into another, whatever the procedure
the ultimate goal is that.
Four basic issues are interlinked with foreign exchange; these are
1. Import,
2. Export
3. Remittance
25 | P a g e
Corporate Structure:
BA BA
Securities Exchange
UK
Ltd.
Ltd.
BA Express
(USA)
Inc.
Subsidiaries
Companies
Bank
Asia
Main
Corporation
Conventional
Banking
Off- Shore
Islamic
Banking
Banking
26 | P a g e
Management and Organizational Structure
The organizational organogram of Bank Asia is given below:
27 | P a g e
SWOT Analysis of Bank Asia Limited.
Every organization has some strength that helps it to survive, some weakness that push
it backward, some opportunities that helps it to compete and also some threats that keeps it
aware. BA also has some SWOTs. These are mentioned below.
Strengths of Bank Asia Ltd.:

Bank Asia is a very competitive organization. It is operated by a very efficient
management group. There is a good employee-employer relationship in its head office and also
its all branches. It has a healthy dislike of its competitors. Bank Asia has sponsored to the top
programs, seminars, writing competition and gained valuable coverage. In Bangladesh, it has
100 branches to provide services to the people. All these branches are located in such a place
in where customers feel comfortable and safe to make their transaction. There are 2529 staffs
who work for Bank Asia either in back office or in front office. It has a better financial position
than others in the banking business. It is strong at research and development, as is evidenced
by its evolving and innovative product & service range. Bank Asia has more social awareness
than other banks in Bangladesh right now.
28 | P a g e
Weakness of Bank Asia Ltd.:
Bank Asia does not have a diversified range of products & services. Still the bank is
not fully computerized. Manual registers are used in some cases. However, the income of the
business is still heavily dependent upon its share on the retail market. It caters less the corporate
market than the SCB. This may leave it vulnerable if for any reason its market share erodes.
The retail sector is very price sensitive. But it pays very less interest than other banks. So, if
they found higher interest rate offering by other private banks of Bangladesh then they will
lose customers. It has less promotion campaign than the other bank, because they believe brand
value is the top promoting entity for the company.
Opportunities of Bank Asia Ltd.:

Bank Asia has a goodwill that it provides different banking services to the people with
a minimum cost and cut a very little charge on its transactions. Although it already has 100
branches to provide services to its customers, it also has the opportunity to build up more
branches to make more convenient for the customers. The banking business of Bank Asia and
its other social activities have increased day by day. Sophisticate customer service scheme of
the Bank Asia more preferable to customers than other banks. Products & services development
offers Bank Asia many opportunities. There is the opportunity to develop products and services
such as insurance business & huge investment in capital market etc. Such high value items will
tend to have associated with them, high profits. There are also global marketing events that can
be utilized to support the brand such as the sports &other cultural activities.
Threats of Bank Asia Ltd.:

Bank Asia is exposed to the international nature of trade. It has to deals in different
currencies and so costs and margins are not stable over long periods of time. Such an exposure
could mean that Bank Asia may be doing banking business at a loss. The new technology
emerges to protecting the currency value & use options for better credit rate earnings. The
market for banking sector is very competitive. The model developed by Bank Asia to be world’s
local bank is now commonly used and to an extent is no longer a basis for sustainable
competitive advantage. Competitors are developing alternative brands to take away the market
share of Bank Asia. The roles and regulation of the government and conventional laws of
Bangladesh are also act as threats for the growth of banking business development in
Bangladesh. As discussed above in weaknesses, the retail banking sector is becoming price
competitive. This ultimately means that retail consumers are transacting in bank around for a
better deal. So, if Bank Asia charges a comparative high price for a bank account service, or
loan rate service, then the customers could go to the other bank to compare fees &charges for
the exactly the same services, and will take decision the cheaper of the two. Such customer’s
price sensitivity is a potential external threat to Bank Asia.
29 | P a g e
Conclusion
Most of the Banks in Bangladesh are offering a wide array of financial services including
new types of loans and advances and some whole new services are being launched every
year. Bank Asia, a bank of difference, also has discovered new avenues to reach its goals.
For the brand name, it is gone to people’s heart through updating various services. Bank Asia
should diversify its credit portfolio Bank Asia so that in near future when competition among
Banks will serve, it can stand with its own identity. The Credit Risk Management method that
may seem fit today may not work tomorrow. So all the Financial Institutions must find their
own method in order to sustain in the changing world. Central focus in this regard would be
to have a comprehensive Information Technology system, sufficient expertise and above all
very relaxed management to adopt new idea to update Credit Risk Management method.
Now Bank Asia is continuing business operation successfully in Bangladesh through
developing an image and goodwill among its clientele by offering its excellent services. The
success has been resulted from the dedication, commitment and dynamic leadership of its
management. During the short span of time of its operation, has s Bank Asia successfully
grabbed a position as a highly progressive and dynamic financial institution in the country.
By proliferation of new advance services, expanding use of automated equipment and
electronic transfer of financial inform Bank Asia action, will be the country’s first largest
institution in the near future.
References
1. Website of Bank Asia http://www.bankasia-bd.com/
2. www.google.com
3. Intranet of Bank Asia
4. The Daily Prothom Alo
5. The Wikipedia
6. http://www.bankasia.net/aboutUs.do
7. Frequently asked Question.
8. Various manual of Bank Asia Ltd.
9. Different Documents of the bank.
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30 | P a g e

Course Code:231: Course Title: Law and Theory of Banking

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Course Code:231: Course Title: Law and Theory of Banking

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Course code:231

COURSE TITLE: LAW AND THEORY OF

Goal of Bank Asia Limited

Capital stewardship: Preservation and enlargement of multiple forms of capital,

Accelerating financial inclusion: Accelerate progress towards financial

Differentiating Value Added Services: Strong focus on extremely cost-

Going Green: Quantification of in-house facilities and energy consumption to

Core Values of Bank Asia Limited

Features of Bank Asia Limited

• Bank Asia Limited is engaged in conventional commercial banking. It is also

Corporate Culture of Bank Asia Limited

Work Place Ethics

Corporate Social Responsibilities

Al- Wadiah Current Account:

❖ Initial Deposit: Minimum Tk. 5,000/-

Mudaraba Special Notice Deposit Account (MSNDA):

❖ Initial Deposit: Minimum Tk. 50,000/-

Mudaraba Savings Account (MSA):

Different Tenure of Mudaraba Term Deposit Present Income Sharing

Accounts (MTDA) Ratio (ISR)

MTDA – 1 months 25% 75%

Sectors for Investment under Islamic Banking

Bai Murabaha Muajjal

Other Products & Services

Technology at the Core of Banking Services

Overcoming the Challenges

Money Laundering Risk

SME Banking of Bank Asia

Sondhi - Secured Trading

Sheba - Secured Service

Subidha - Unsecured Trading

Shofol - Unsecured Service

Subarno - Women Entrepreneur

Beauty & Discretion

Terms & Conditions

Locker Size Yearly Charge(Tk) Security

Departments & General activities of Bank Asia Ltd.

General Banking: It includes-

Functions of credit department:

The organizational organogram of Bank Asia is given below:

Strengths of Bank Asia Ltd.:

Opportunities of Bank Asia Ltd.:

Threats of Bank Asia Ltd.:

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