An Overview of Brac Bank and Dutch Bangla Bank Limited

FIN 101 (6)

Prepared for
Md. Humayun Kabir
Senior Lecturer
Department of Business Administration
East West University
Prepared By
Name ID
Jannatul Fedous Bithi 2018-3-30-026
Ahsan Kabir Sovon 2019-1-10-295
S M Estiyak Jahan Joy 2019-3-10-132
Sadman Rafid Fardeen 2019-3-10-187
Nusrat Amin 2020-1-10-411

Bachelor of Business Administration

East West University
September 2021

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Letter of Transmittal
Md. Humayun Kabir
Senior Lecturer, 
Department of Business Administration
East West University
Aftab Nagar, Dhaka-1212, Bangladesh

Subject: Term paper on an Overview of Brac Bank and DBBL.

Dear Sir,
It gives us immense pleasure in submitting to you the report on these two banks.
While preparing the report, we closely focused on the topic & tried to assimilate and to provide
the most complete information available. We believe that it will provide you with a clear
scenario of the banks, how these banks are running and what are the way of doing tasks of these
banks.
We thank you for allowing us to do a term paper on a new idea. This will definitely give us an
experience which we can use in our professional life. We will be always available for any further
queries and to answer any questions on this report.

Sincerely,
S M Estiyak Jahan Joy
ID: 2019-3-10-132
On behalf of the Group

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 Acknowledgement

I would like to express my utmost gratitude and wholehearted appreciation to all those who
helped me and provided me with the opportunity to complete and present this term paper.
 
First of all, I would like to thank my honorable faculty supervisor, Md. Humayun Kabir, Senior
Lecturer, Department of Business Administration, East West University for providing me the
opportunity to observe and analyze such an interesting topic and for his supervision, restless
guidance and invaluable advice whenever needed.
 
I would also like to thank all my group members for helping me whenever I got stuck on a
particular topic. All of my group members were so helpful that I did not feel for a second that I
do not know them in person because of this pandemic situation. My group members were
helping me online. 
 
I would like to thank my course mate, Ahsan Kabir Sovon for helping me. He was so helpful for
me in completing this term paper.

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Table of Contents
Executive Summary.....................................................................................................................................5
Introduction.................................................................................................................................................6
Objective of the Study.................................................................................................................................7
Brac Bank................................................................................................................................................7
Dutch Bangla Bank..................................................................................................................................7
Limitation of the study................................................................................................................................9
Company Overview...................................................................................................................................10
Brac Bank...............................................................................................................................................10
Vision of Brac Bank..........................................................................................................................11
Mission of Brac Bank........................................................................................................................11
Dutch Bangla Bank................................................................................................................................11
Vision of Dutch Bangla Bank............................................................................................................13
Mission of Dutch Bangla Bank..........................................................................................................13
Products and service.................................................................................................................................14
BRAC BANK............................................................................................................................................14
DBBL bank...........................................................................................................................................16
Growth Rate Calculation............................................................................................................................21
Findings and discussion.............................................................................................................................26
BRAC BANK............................................................................................................................................26
DBBL....................................................................................................................................................26
Recommendation......................................................................................................................................28
BRAC Bank.............................................................................................................................................28
Dutch Bangla Bank.................................................................................................................................29
Conclusion.................................................................................................................................................30
BRAC Bank.............................................................................................................................................30
Dutch-Bangla Bank................................................................................................................................31

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 Executive Summary

Brac Bank and Dutch Bangla Bank Limited is in the list of leading banks in Bangladesh. These
two banks are running their programs fluently and these banks have many branches. These two
banks are holding many customers of this country. DBBL was founded on 1995 and Brac Bank
was founded on 2001. Thus, Brac Bank was more active in the previous decade than DBBL.
Nowadays DBBL is creating new branches and spreading their territory.

The Strategies of DBBL is working great and they are capturing more customers day by day.
Brac Bank is giving restless services but however they do not have much strategies to follow and
for that reason they are leaving behind by many other banks. Brac Bank needs to improve their
services otherwise they will fall in the banking sector of Bangladesh.

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 Introduction
I introduce the topic. The topic name is Brac Bank Ltd. and Dutch Bangla Bank Ltd. First of all,
I want to tell you about Brac Bank. Brac Bank is a private commercial bank in Bangladesh. Brac
Bank Ltd began with the vision provide banking solutions to the unbanked small and medium
enterprise. Brac Bank introduced small ticket loans to the small and medium enterprise. Brac
Bank is a performance driven dynamic organization. Many kinds of research I am planning to
carry for example. The growth rate about the Brac Bank.

The vision of Brac Bank is a world free from all forms of exploitation and discrimination where
everyone has the opportunity to realize their potential.

The mission of the Brac Bank is to empower people and communities in situations of poverty,
illiteracy, social injustice.

The main objective of Brac Bank is it has integrity, innovation inclusiveness, effectiveness.

Then I want to tell you about Dutch Bangla Bank Ltd. Dutch Bangla Bank is Bangladesh’s most
innovative and technologically advanced bank. Dutch Bangla Bank is proud to be associated
with helping Bangladesh as well as being a leader in the country’s banking sector.

The mission of Dutch Bangla Bank is Dutch Bangla Bank engineers’ enterprise and creativity in
business and industry with a commitment to social responsibility.

The vision of Dutch Bangla Bank dreams of better Bangladesh arts and later sports and athletics,
music and entertainment, science and education, clean and pollution free environment and above
all a society best on morality and ethics make all our lives worth living.

The main objective of Dutch Bangla Bank is it believes in its uncompromising commitment to
fulfill its customer needs and satisfaction to become their first choice in banking.

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 Objective of the Study

We are talking about the Brac Bank and Dutch Bangla Bank to bank has some objectives. The
objectives are:

Brac Bank
•Sustained growth in the Small & Medium Enterprise’ sector; Continuous low-cost deposit
growth with controlled growth in Retail Assets.

•Corporate Assets to be funded through self-liability mobilization. Growth in Assets through

syndications and investment in faster growing sectors; Continuous endeavor to increase non-
funded income.

•Keep Debt Charges at 2% to maintain a steady profitable growth.

•Achieve efficient synergies between the bank’s branches. SME unit offices and BRAC field
offices for delivery of Remittance and Bank’s other products and services.

•Manage various lines of business in a fully controlled environment with no compromise on

service quality.

•Keep a diverse, far-flung team fully motivated and driven towards materializing the bank’s
vision into reality.

• The bank operates under a ‘double bottom line’ agenda where profit and social responsibility
go hand in hand as it strives towards a poverty-free, enlightened Bangladesh.

Dutch Bangla Bank

•Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs
and satisfaction and to become their first choice in banking. Taking cue from its pool esteemed
clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that upholds and
epitomizes its vaunted marquees "Your Trusted Partner".

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•DBBL’s focus is to provide one counter service to clients covering: Commercial Banking
(Deposit Accounts), Consumer Banking (Retail Baking) – Traveler Cheques- Foreign & Inland
Remittances, Financial Services, Corporate Banking, Asset & liability management, Liquidity &
capital Resources Management, Information technology, Human Resources.

•DBBL, since its inception, has been active in various social activities, which increased manifold
over the period of time and its growth. It is one of the fastest growing leading online banks in the
private sector.

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Limitation of the study

Due to COVID-19 pandemic situation, we could not go out to collect information by

communicating with people. Also, due to lack of professionalism and opportunity sets the
barriers for preparing the perfect quality-oriented report based on primary information sources.
Due to lack of opportunity, this report is prepared based on secondary information sources. As
we didn’t have any other information sources, we could not collect information through
interviews from employees and others and also was restricted by our capability. In the case of
secondary data collection, there was very little information and few support books, reports,
journals etc. In some cases, there was confidentiality of data and also time constraint,
contradictory information.

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 Company Overview

Brac Bank

Background of Brac Bank

BRAC Bank Limited started with the vision to provide banking accomplishment for the
‘unbanked’ Small and Medium Entrepreneurs. Taking motivation from its parent association
BRAC, the biggest NGO on the planet, BRAC Bank acquainted small ticket loans to the small
and medium enterprises (SME), to explicitly bring the grassroots business people under the
umbrella of formal financial help. Roughly 50% of BRAC Bank’s lending portfolio involves
small and medium enterprises – prominently known as the ‘SME’.
In 2001 BRAC Bank didn’t begin its excursion like some other regular banks. The visionaries
who drove the bank understood that the recently disregarded Small and Medium Enterprises
(SME) area assumes a huge part in carrying out development and making workplaces in the
country. In the course of recent years, customary banks were hesitant to put resources into this
sector. At the point when it was practically unthinkable for the SME business visionaries to get
financing from the financial area in Bangladesh, BRAC Bank ventured forward and came to fund
these unbanked SME business visionaries.
BRAC Bank is an exhibition driven powerful association, where its qualities are established at
the center of every single action as columns. It is the solitary member of the Global Alliance for
Banking on Values (GABV) from Bangladesh. The Global Alliance involves 48 (as of May
2018) monetary foundations working in nations across Asia, Africa, Australia, Latin America,
North America and Europe – serving in excess of 41 million clients, holding up to USD 127
billion of joint resources under administration and controlled by an organization of 48,000
collaborators.
BRAC Bank shares the 3P Philosophy – People, Planet and Profit with different accomplices of
GABV. We confide that we have liability towards individuals we work with and the sectors we
work in. As a mission-driven bank, we like to work for the betterment of our people and society.

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Vision of Brac Bank
Constructing a lucrative and socially liable monetary organization targeted on market and
business with development potential, in this way helping BRAC and its partners to assemble a
just, edified, solid democratic and impoverishment free Bangladesh.

Mission of Brac Bank

● Sustainable development in Small and Medium Enterprise area
● Persistent minimal expense deposit Growth with controlled development in retail assets
● Corporate Assets to be supported through self-responsibility assembly
● Development in Assets through partnerships and investment in more quickly thriving
areas
● Persistent undertaking to increment non-financed income
● Keep our loan charges at 2% to maintain a consistent profitable enhancement
● Accomplish proficient collaborations between the bank’s branches, SME unit offices and
BRAC field offices for conveyance of remittance and the bank’s different products and
services
● Oversee different lines of business in a full controlled environment with no tradeoff
consistency and on service quality
● Keep a different, remote team completely inspired and driven towards appearing the
bank’s vision into the reality

Dutch Bangla Bank

Background of Dutch Bangla Bank

Dutch-Bangla Bank began activity as Bangladesh's first joint endeavor bank. The bank was a
work by neighborhood investors initiated by M Shahabuddin Ahmed (originator administrator)
and the Dutch organization FMO.
From the beginning, the focal point of the bank has been financing high-development producing
ventures in Bangladesh. The reasoning being that the assembling area trades Bangladeshi items
around the world. Subsequently financing and focusing on this area permits Bangladesh to

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accomplish the ideal development. Dutch Bangla Bank's other center is Corporate Social
Responsibility (CSR). Despite the fact that CSR is currently a banality, Dutch Bangla Bank is the
pioneer in this area and named the commitment basically as 'social responsibility'. Because of its
interest in this area, Dutch Bangla Bank has become perhaps the biggest giver and the biggest
bank benefactor in Bangladesh. The bank has won various global honors due to its one-of-a-kind
methodology as a socially cognizant bank.
Dutch Bangla Bank was the main bank in Bangladesh to be completely computerized. The
Electronic-Banking Division was set up in 2002 to embrace fast computerization and bring
present day banking administrations into this field. Full computerization was finished in 2003
and therefore acquainted plastic cash with the Bangladeshi masses. Dutch Bangla Bank likewise
works the country's biggest ATM armada and, in the process, definitely cut shopper expenses
and charges by 80%. Besides, Dutch Bangla Bank picking the low productivity course for this
area has astounded numerous pundits. Dutch Bangla Bank had sought after the mass robotization
in Banking as a CSR action and never planned to benefit from this area. Thus, it currently gives
unmatched financial innovation contributions to every one of its clients. Due to this attitude,
most neighborhood banks have joined Dutch Bangla Bank banking framework as opposed to
seeking after their own.
Indeed, even with a background marked by powerful innovative ventures and much bigger gifts,
customer and financial backer certainty has never melted away. Dutch-Bangla Bank stock set the
standard at the most elevated offer cost in the Dhaka Stock Exchange in 2008.

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Vision of Dutch Bangla Bank
Dutch-Bangla Bank longs for better Bangladesh, where expressions and letters, sports and
games, music and amusement, science and training, wellbeing and cleanliness, clean and
contamination free climate or more every one of the general public dependents on profound
quality and morals make for our entire lives worth living. Dutch-Bangla Bank's pith and ethos
lay on a universe of inventiveness and the wonder sorcery of an enchanted life that flourishes
with the soul of life and undertakings that contribute towards human turn of events.

Mission of Dutch Bangla Bank

Dutch-Bangla Bank engineers’ endeavor and inventiveness in business and industry with a
guarantee to social obligation. "Benefits alone" don't hold a focal concentration in the Bank's
activity; since "man doesn't live by meat and potatoes alone".

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 Products and service
BRAC BANK

SME Banking:

BRAC Bank, being the youngest bank, took a step to break away from usual tradition and tapped
into the true suburb entrepreneurial initiatives.

Today, with over 10,000 crores of loans disbursed till date, BRAC Bank is the country's largest
SME financier that has made more than 265,000 dreams come true! If you have a dream on
which you trust, let us make it true together.

Importance of SME:

The main focus of BRAC Bank is to develop the human and economic position of a country. Its
function is not limited only to providing and recovering loans but also trying to develop the
economy of a country.

Support Small Enterprise:

The small enterprise, which requires BDT 2 to 30 lakhs loan, but they have no easy access to the
banks/financial institutions. For example: In case of Anonno loan, an amount of 3 to 8 lakhs is
provided without any kind of mortgage.

Economic Development:

Economic development of a country largely depends on the small and medium seal enterprises.
Such as, if we analyze the development history of Japan, the development of small & medium
scale enterprises expedites the development of that country.

Employment Generation:

The bank gears employment opportunities in two ways: Firstly, by providing loans to the small
enterprises expanding, these businesses require more workers. Secondly, the Small & Medium
Enterprise (SME) program requires educated and energetic people to provide support to
entrepreneurs.

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15
Profit Making:

The SME program is a new dimensional banking system in the banking world. Most of the
CROs are providing door-to-door services to the entrepreneurs. Entrepreneurs are satisfied by the
service of the bank and make profit.

Encourage Manufacturing:

The focus of BRAC Bank is to encourage manufacturing by the entrepreneurs who produce by
purchasing various types of materials. CRO try to educate them to produce material if possible
because if they can produce in line of purchase profits will be high.

Spread the Experience:

Another reason for BRAC Bank is to spread the knowledge on the importance of SME banking
regarding various businesses. The customer services officer shares their knowledge from various
businesses and tries to help the entrepreneurs who have shortage of the gathered knowledge.
CRO’s who are the driving force of the SME division of BRAC Bank also gather knowledge
about various businesses and make a stronger knowledge base.

Wholesale Banking:

BRAC Bank offers a full array of Financial Services to Corporations and Institutions. Having
access to the deepest end of the country, BRAC Bank is there to assist businesses in Bangladesh.
With us on your side, you have the power of local knowledge with the capabilities of global
standards.

Probashi Banking:

When you send your hard-earned money from abroad to dear ones at the farthest end of
Bangladesh, ask them to collect it from over 3,500 payout locations of BRAC Bank. Every
month, Probashi Banking executes around 150,000 transactions; which has made BRAC Bank
one of the largest players among private commercial banks in channelizing inward remittance in
the country.

And with ELDORADO, now you can withdraw money from any of the Eldorado member banks
in addition to BRAC Bank outlets – that’s too, instantly!

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E-Banking:

With over 100 outlets, 300 ATMs and over 500,000 plastics in the market, BRAC Bank offers
you a wide range of financial solutions to meet your everyday needs.

DBBL bank

The product list of Dutch-Bangla Bank Limited is given below:

Products and services offered by DBBL

• Retail Banking

• Remittance and collection

• Import and export handling and financing

• Corporate Banking

• Project Finance

• Investment Banking

• Consumer credit

• Agriculture Loan

• Real time any branch banking

• 24 Hours Banking through ATM

• DBBL-NEXUS ATM & Debit card

• DBBL-Maestro/Cirrus ATM & Debit card

• DBBL Credit card

• Internet Banking

• SMS Banking

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• On line Banking through all Branches

Banking Products

Various deposits:

• Savings Deposit Account

• Current Deposit Account

• Short Term Deposit Account

• Resident Foreign Currency Deposit

• Foreign Currency Deposit

• Convertible Taka Account

• Non-Convertible Taka Account

• Exporter’s FC Deposit (FBPAR)

• Current Deposit Account-Bank

• Short Term Deposit Account-Bank

Loan & Advances

• Loan against Trust Receipt

• Transport Loan

• Consumer Credit Scheme

• Real Estate Loan (Res. & Comm.)

• Loan Against Accepted Bill

• Industrial Term Loan

• Agricultural Term Loan

• Lease Finance

• Other Term Loan

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• FMO Local currency Loan for SME

• FMO Foreign currency Loan

• Cash Credit (Hypothecation)

• Small Shop Financing Scheme

ATM Services

We can find DBBL ATMs beside our home, in our office premise, nearby market, university,
college & school premises, Airport, Railway stations etc., throughout the country. Using any of
the DBBL ATM pools anywhere in the country, you can perform the following:

• Account balance enquiry

• Cash withdrawal – 24 hours a day, 7 days a week, 365 days a year

• Cash deposit to a certain number of ATMs any time

• Mini statement printing

• PIN (Personal Identification Number) change

Treasury

DBBL is well equipped for treasury operation through subscribing to Reuters's terminal and
operating in the SWIFT network. It is also well equipped with competent human resources for
efficient dealing.

DBBL’s treasury quotes competitive exchange rate for major currencies:

• Spot Sale/Purchase

• Forward Sale/Purchase

• Money market Interbank & Corporate

• SWAPS

Account Service

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DBBL provides all the accounts services as prescribed by the guidelines of the Central Bank
(Bangladesh Bank). DBBL offers competitive interest rates and provides premium quality
services for the accounts. Account services are:

• Foreign Currency Account

• Non-Resident Foreign Currency Deposit Account (NFCD)

• Resident Foreign Currency Deposit Account (RFCD)

• Convertible and Non-Convertible Taka Account

Foreign Trade

DBBL extends finance to the importers in the form of:

• Opening of L/C (Foreign/Local)

• Credit against Trust Receipt for retirement of import bills.

• Short term & medium-term loans for installation of imported

Foreign Remittance

DBBL provides premium quality service for repatriation and collection of remittance with the
help of its first-class correspondents and trained personnel. By introducing on-line banking
service and becoming a SWIFT Alliance Access Member, which enables its branches to send
and receive payment instructions directly, which helps provide premium services. Remittance
services provided by DBBL are:

• Inward Remittance: Draft, TT

• Outward Remittance: FDD, TT, TC and Cash (FC)

Western Union

Western Union Financial Services Inc. The U.S.A. is the number one and reliable money transfer
company in the world. This modern Electronic Technology based money transfer company has
earned worldwide reputation in transferring money from one country to another country within

20
the shortest possible time. Dutch-Bangla Bank Limited has set up a Representation Agreement
with Western Union Financial Services Inc. U.S.A. as on 14th February 2006.

DBBL Internet Banking

DBBL Internet banking enables customers to access his/her personal or business accounts
anytime anywhere from home, office or when traveling. Internet Banking gives customers the
freedom to choose his/her own banking hours. It can save time, money and effort. It’s fast, easy,
secure and best of all.

Using any of the DBBL ATM pools anywhere in the country, you can perform the following:

• Securities with DBBL Internet Banking

• A/c Opening & Accessing Internet Banking

• Internet Banking Features

• Terms & Conditions of Internet Banking

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 Growth Rate Calculation

Table 1 Growth Rate of Cash in Hand

Year BRAC Bank DBBL GR Brac GR DBBL

2015 5,613,959,872 8,296,998,632

2016 5,404,296,928 11,051,999,011 -0.037347 0.332048
2017 6,109,792,050 11,213,603,710 0.130543 0.014622
2018 6,674,699,654 17,419,869,741 0.092459 0.553459
2019 6,726,443,188 16,437,855,873 0.007752 -0.056373
2020 7,091,907,372 17,030,120,126 0.054332 0.036031

This table 1 shows that the cash in hand of Brac Bank limited is increasing by a little in 2017,
2018, 2019, and 2020. But it decreased in 2016. On the other hand, cash in hand of DBBL is
increasing in 2016, 2017, 2018, and 2020. But it decreased in 2019.

Growth Rate of Balance in

Table 2 Bangladesh Bank

Year BRAC Bank DBBL GR Brac GR DBBL

2015 10,592,881,511 14,555,926,865

2016 10,416,488,307 17,660,677,577 -0.0166521 0.21329804
2017 12,192,061,982 19,668,113,433 0.17045799 0.11366698
2018 15,719,774,488 32,728,425,040 0.28934503 0.66403479
2019 16,103,064,899 25,555,947,901 0.02438269 -0.2191513
2020 12,151,189,284 23,858,695,319 -0.2454114 -0.0664132

This table 2 shows that the growth rate of the balance of Brac bank in Bangladesh Bank has
decreased in 2016 and 2020 but increased in 2017, 2018, and 2019. On the other hand, the
growth rate of the balance of DBBL in Bangladesh Bank has increased in 2016, 2017, and 2018
but decreased in 2019 and 2020.

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 Growth Rate of Government
Table 3 Investments

Year BRAC Bank DBBL GR Brac GR DBBL

2015 14,979,456,068 19,405,280,474

2016 17,045,441,443 31,291,256,232 0.1379213 0.6125124
2017 19,193,023,616 25,906,629,424 0.1259916 -0.172081
2018 27,925,905,144 31,457,164,331 0.4550029 0.2142515
2019 39,175,469,934 52,193,468,169 0.4028362 0.6591918
2020 61,821,887,388 106,718,508,845 0.5780765 1.0446717

This table 3 shows that the Government investment in Brac bank limited is increasing day by
day.
On the other hand, Government investment in DBBL was increasing in 2016 but decreased in
2017. But after that it has started increasing again.

Growth Rate of Loans, Credit

Table 4 and Overdraft

Year BRAC Bank DBBL GR Brac GR DBBL

2015 93,261,446,572 146,351,641,108

2016 110,499,060,018 162,415,747,438 0.1848311 0.1097638
2017 116,620,559,298 191,235,070,845 0.0553987 0.1774417
2018 139,883,617,667 208,026,971,615 0.1994765 0.0878076
2019 145,604,630,622 239,209,515,963 0.0408984 0.1498966
2020 136,374,612,915 257,165,934,137 -0.063391 0.0750657

This table 4 shows that the loans, credit and overdraft of both the banks are decreasing day by
day.

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 Growth Rate of Bill
Table 5 Purchased and Discounts

Year BRAC Bank DBBL GR Brac GR DBBL

2015 1,287,994,847 5,918,359,357

2016 1,927,519,928 10,982,050,193 0.49652767 0.8555903
2017 5,746,293,951 17,030,193,242 1.98118524 0.55072987
2018 18,094,372,030 16,216,972,893 2.14887686 -0.0477517
2019 3,377,055,483 17,030,193,242 -0.8133643 0.05014625
2020 2,067,223,481 16,216,972,893 -0.3878622 -0.0477517

This table 5 shows that the growth rate Bill purchased and discounts of Brac Bank has increased
from 2016 to 2018 and decreased afterwards. In DBBL the bill purchased and discounts was
decreasing from 2016 to 2018 and increased in 2019 and again decreased in 2020.

Growth Rate of Current

Table 6 Deposits and other accounts

Year BRAC Bank DBBL GR Brac GR DBBL

2015 49,153,715,207 47,484,925,764

2016 50,271,016,607 55,982,102,624 0.0227308 0.1789447
2017 83,474,319,154 66,320,230,637 0.660486 0.1846684
2018 80,225,826,007 89,092,047,606 -0.038916 0.3433615
2019 70,387,783,800 66,320,230,637 -0.122629 -0.255599
2020 97,266,324,684 89,092,047,606 0.3818637 0.3433615

This table 6 shows that the growth rate of current deposits and other accounts of Brac Bank was
positive in 2016 and 2017 and then it turned to negative in 2018 and 2019 and again positive in
2020.
The growth rate for DBBL was in negative in only on the year 2019.

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 Growth Rate of Bills
Table 7 Payable

Year BRAC Bank DBBL GR Brac GR DBBL

2015 843,532,886 2,827,945,083

2016 1,309,401,487 3,790,478,406 0.55228268 0.34036493
2017 1,013,749,416 6,470,116,423 -0.2257918 0.70693926
2018 1,528,433,733 10,010,396,505 0.50770369 0.54717409
2019 1,911,038,678 4,332,131,895 0.25032485 -0.5672367
2020 1,797,962,669 3,925,305,619 -0.0591699 -0.093909

This table 7 shows that the growth rate of Bill Payable of Brac Bank Limited. The bill payable
was negative in 2017 and 2020. It was positive on 2016, 2018, and 2019. On the other hand, in
DBBL the growth rate in positive in 2016 to 2018 and negative in 2019 and 2020.

Growth Rate of Share

Table 8 Premium

Year BRAC Bank DBBL GR Brac GR DBBL

2015 3,622,522,880 11,067,500

2016 3,659,942,031 11,067,500 0.0103296 0
2017 3,738,490,072 11,067,500 0.0214616 0
2018 3,853,767,032 11,067,500 0.0308352 0
2019 3,853,767,032 11,067,500 0 0
2020 3,853,767,032 11,067,500 0 0

This table 8 shows that the growth rate of Share premium was increasing from 2016 to 2018 but
in 2019 and 2020 it was the same. In DBBL the share premium of every year is the same.

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 Growth Rate of Statutory
Table 9 Reserve

Year BRAC Bank DBBL GR Brac GR DBBL

2015 3,470,350,332 7,487,588,738

2016 3,470,350,332 8,134,390,476 0 0.08638318
2017 4,813,606,868 9,193,048,174 0.38706655 0.13014592
2018 6,428,088,086 9,193,048,174 0.33539948 0
2019 8,129,149,416 9,193,048,174 0.26462944 0
2020 9,405,017,728 9,193,048,174 0.15694979 0

This table 9 shows that the growth rate of statutory reserve for Brac Bank was increasing from
2016 to 2020 and it was constant in 2016. But for DBBL it is the opposite the growth rate was
increasing in 2016 and 2017 but it was constant in 2018 to 2020.

Growth Rate of Saving Bank

Table 10 Deposits

Year BRAC Bank DBBL GR Brac GR DBBL

2015 29,105,666,315 70,609,619,683

2016 31,368,696,186 82,480,121,034 0.0777522 0.1681145
2017 35,100,923,580 110,348,053,558 0.1189794 0.3378745
2018 38,320,761,103 127,689,439,982 0.0917308 0.1571517
2019 44,538,393,041 145,754,017,061 0.1622523 0.1414728
2020 57,230,594,232 170,213,630,379 0.2849721 0.1678143

This table 10 shows that the Brac Bank Saving Bank Deposits is increasing for both of the banks.

26
 Findings and discussion
BRAC BANK

A fully operational Commercial Bank, BRAC Bank focuses on pursuing unexplored market
niches in the Small and Medium Enterprise Business, which hitherto has remained largely
untapped within the country. In the last six years of operation, the Bank has disbursed over BDT
11,158.15 million in loans to nearly 60,000 small and medium entrepreneurs. The management
of the Bank believes that this sector of the economy can contribute the most to the rapid
generation of employment in Bangladesh. Since inception in July 2001, the Bank’s footprint has
grown to 36 branches, 413 SME unit offices and 48 ATM sites across the country, and the
customer base has expanded to 2,58,601 deposits around 2007. In the years ahead BRAC Bank
expects to introduce many more services and products as well as add a wider network of SME
unit offices, Retail Branches and ATMBRAC Bank, for the first time among local commercial
banks, starts providing loan facilities to small and medium trading, manufacturing and service-
oriented enterprises all over the country.

DBBL

While preparing the report, I have learned several activities of FED of DBBL regarding
financing, import, export, purchasing bill etc. these activities are summarized below:

The most important factors that have been found to play a significant role in the number of
Export L/C in a month at DBBL are Back-to-Back L/C and Export Cash Credit (ECC). Other
than that, Package Credit (PC) also has a big impact on the number of Export L/C in a month.
The original un-standardized equation, with statistically significant and insignificant variables in
foreign exchange department it is required to communicate with foreign banks and international
divisions of DBBL frequently and quickly. To make the process easy modern communication
media for e-mail, fax, internet etc. should be used. But the bank has not so much practice of
using these media. Modern technical equipment such as computers is not sufficient in foreign
exchange department. As a result, the exchange process causes delay and it is also complicated.

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If any wrong information can be written by an officer in IMP form, the bank will lose their
dealership and must be cancelled. DBBL faced a challenging position in various competing
banks in the current market.

The bank should have higher exports who can understand the future economic situation and can
take initiative based on the forecast. Again, the bank can achieve success from the economy if
they can handle the situation efficiently. Banks should improve their research center and training
center to enrich the knowledge regarding Uniform Customs and Practice for Documentary Credit
(UCPDC). I recommend that the bank improve its management of international divisions who
are responsible for handling their foreign exchange related risk. Again, the bank should maintain
a correspondence relationship with the bank that will allow them to settle payment and receipt
regarding foreign exchange transactions. The bank should be aware about their customer to meet
up their demand to maintain their goodwill. Bangladesh is a developing country. Many people of
our country live in many countries. So, it is important to maintain foreign exchange department
in every bank. Foreign exchange department of DBBL should be enriched by new technology to
make a good competition among the banks.

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 Recommendation

BRAC Bank

In order to remain competitive in the industry and become profitable by improving business
performance, BRAC Bank Ltd. can think about the following recommendations:

A bank is a financial service-oriented organization. Its business profit depends much on its
customer’s satisfaction level. That’s why the authorities should always be concerned about their
customers and the quality of service they are providing to them.

1. Credit card charges should be immediately reversed because customers seem to be very
much disappointed regarding the credit card service charge. As a premium Banking
client, they are not supposed to pay any charge for their credit card or ATM card, but
still, the bank is deducting the charge by mistake. BRAC Bank should put serious effort
to make sure that this sort of mistake doesn’t happen again and reverse the charges
immediately.
2. Premium Banking lounge should set up in the branch to provide quick and better service
to valued and important customers
3. BRAC Bank should offer more facilities to the Premium Banking customers such as
travel facilities, medical facilities, send flowers and cakes to customer’s birthdays or any
other anniversary, etc.
4. The usage period of the service indicates there are only a few clients who have signed up
for this service recently. BRAC Bank should promote their product accordingly so that
they can draw in new clients as well as provide quality service to existing clients.
5. BRAC Bank should use specific marketing or promotion strategy rather than just
promoting their services through relationship managers

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 6. When a customer will go to Premium Banking for a particular service or problem BRAC
Bank authority should make sure that he or she gets all the services from one booth rather
than moving from one desk to another desk for service
There should be at least one customer service officer assigned only for Premium Banking clients
to each branch, though currently there is none for PB.

Dutch Bangla Bank

The bank should have higher exports who can understand the future economic situation and can
take initiative based on the forecast. Again, the bank can achieve success from the economy if
they can handle the situation efficiently.

1. DBBL Bank should improve their research center and training center to enrich the
knowledge regarding Uniform Customs and Practice for Documentary Credit (UCPDC).
2. I recommend that DBBL bank has to improve its management of international divisions
who are responsible for handling their foreign exchange-related risk.
3. Again, the bank should maintain a correspondence relationship with the bank that will
allow them to settle payment and receipt regarding foreign exchange transactions.
4. The bank should be aware of their customer to meet up their demand to maintain their
goodwill.
5. Bangladesh is a developing country. Many people of our country live in many countries.
So, it is important to maintain a foreign exchange department in every bank.
6. The foreign exchange department of DBBL should be enriched by new technology to
make a good competition among the banks.

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 Conclusion

BRAC Bank

Consumer banking is quite a new concept in banking history, especially in Bangladesh. With the
growing number of local private banks competing for customers, BRAC Bank Limited cannot
hold on to their expected customer base only with their earlier reputation. It also has to ensure its
customer satisfaction, maintain service quality and have to keep upgrading its service as well.
Since the banking industry of our country is very competitive, one might want to add and
innovate newer products and services to their line. Premium Banking for priority clients is a
unique product of the bank that can bring more loyal customers if promoted in a planned way. It
will help the bank in two ways, firstly they can keep their existing customers feel interested in
the bank’s products and services, and secondly, this strategy will help them to add more and
more new customers to their portfolio.

Finally, it can be said that though the results achieved so far are moderately satisfactory,
Premium Banking of BRAC Bank Ltd. still possesses great potentiality. They have wonderful
opportunities in the market to utilize and they can easily survive in the industry with full
profitability by adopting some current relevant tactics. To keep up with the expectations of their
customers BRAC Bank Ltd. have to take all the necessary measures to satisfy their customers
because if the customers once realize that they are not getting proper treatment, they might
switch to other banks

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Dutch-Bangla Bank

To conclude, Dutch-Bangla Bank Limited is one of the most potential Banks in the banking
sector. It has a large portfolio with huge assets to meet up its liabilities and the management of
this bank is equipped with export bankers and managers at all levels of management. So, it is not
an easy job to find out the drawbacks of this branch. I would rather feel like producing my own
opinion about the ongoing practices in Mirpur Circle -10 Branch. Over the last few decades,
there have taken place dramatic transformation in the realm of foreign exchange and financing of
foreign trade. In the wake of these changes, the financial experts have developed a whole range
of ideas and techniques on management exchange rates, investment of foreign exchange
reserves, and opening up the economy. Currently, this sector is becoming extremely competitive
with the arrival of multinational banks as well as technology infrastructure, effective foreign
trade management, higher performance level, and utmost customer satisfaction. Again, the
advent of a new era of information technology has changed the ways banks handle their foreign
exchange-related transactions. We know that institutional support is necessary for undertaking
international trade and foreign exchange business. On the other hand, expertise regarding the
management of exchange rates is essential for the successful operation of foreign exchange-
related transactions. By undertaking these activities efficiently DBBL will be able to maximize
its profit and wealth maximization objectives. DBBL undertakes and supports foreign exchange
business and the management of exchange rates in a different way. But some improvement
regarding exchange rate risk minimization is necessary for handling the competition that arises
from the competitive financial market, as the foreign exchange division has an influential effect
on the net operating income and net income of the bank. Recently this division has achieved
quite a success as they have achieved permission to perform most of the foreign exchange-
related transactions. But rivals among local and foreign banks will make the activities of the
bank more competitive in the near future. So, the banks have performed the foreign exchange
transaction in a more innovative way. So Dutch- Bangla Bank Limited has to reengineer its plan
and reform the service improvement strategy to retain the higher performance level, customer
satisfaction and to compete with challenges.

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