Business Communications:Banking Letters-4

BANKING DIPLOMA EXAMINATION Banking Diploma Courses in Bangladesh under The Institute of Bankers, Bangladesh(IBB) Business Communications-JAIBB Sample: Banking (22) Letters-4

Letters Writing:
As a manager of a bank branch write in reply to a prospective customer about loan facilities for SMEs.

Agrani Bank
Nawabpur Branch 36 Nawabpur Road, Dhaka 1000 Tel: 957 3053 Fax: 957 3054 Email: abnp@agranibank.org
Our Ref: AG/Nawab/LQA/233/09 Sunday, May 23, 2010 Mr. Zubair Ahmed Paragon Hardware Mart 39, Nawabpur Road, Dhaka 1000 SUB: YOUR ENQUIRY ABOUT LOAN FACILITIES FOR SMEs Dear Sir: In response to your letter dated April 29, 2010 we like to inform you that Agrani Bank is one of the large commercial banks operating in Bangladesh for a long time and a pioneer in providing a variety of loans and credits for industrial growth and poverty alleviation. We provide SME loans for anything that relates to manufacturing goods, trading and service industries which are permissible according to credit policy of our bank. Depending on your experience and expertise you may apply for an SME loan for any business that suits you. The salient features of our SME loan: Loan Ceiling: BDT 3 lac to 10 lac Product Type: Equated Monthly Installment (EMI) or Single Installment Tenure: EMI in 12 to 36 months or by a Single Installment Maximum Loan amount: Required loan amount, but not exceeding Taka 50 lac Interest Rate: 13% and in case of agro-based SME 9% Security: Hypothecation on assets, two personal guarantees & post dated cheques For details about the products of our SME loans please visit our website: www.agranibank.org or you may please take the trouble to visit our branch office during office hours. We are proud to serve you. Thank you, sir.

Sincerely

Maswood Alam Khan Manager ________________________________________________________________________________________

Write a draft of the minutes of the Board meeting of your bank in which SME loan facilities were approved

One Bank
Board Division, Head Office, Dhaka Telephone: 02-988 3324 Facsimile: 02-988 3325 Email: oneboard@onebank.com Ref: Board Meeting/Minutes/SME/M-39/10 Sunday, May 23, 2010

Strictly Confidential

MINUTES OF THE BOARD MEETING IN WHICH SME LOAN FACILITUIES WERE APPROVED

In pursuance of the Circular Number 33 dated 12 March 2010 of Bangladesh Bank and in accordance with the governments directive to encourage entrepreneurs in Small and edium Enterprises (SME) One Bank in its 235th Credit Committee meeting held on May 12, 2010 recommended, which has been approved by the Managing Director, to disburse a total amount of Taka 500 crore among at least 5000 entrepreneurs as SME loans under the following terms and conditions. The details of the loan scheme are mentioned in Annexure A, B and C. The recommended SME loan scheme is placed for approval by the Board of Directors in the meeting being held on May 23, 2010:
Loan Ceiling: BDT 3 lac to 10 lac Maximum Loan amount: Required loan amount, but not exceeding Taka 50 lac Areas of SME: Any manufacturing or service industry and trading that can employ at least 10 people as wage earners Preference to be given to those trades and industries which can produce products and services as substitutes of any product that are imported from abroad Product Type: Equated Monthly Installment (EMI) or Single Installment Tenure: EMI in 12 to 36 months or by a Single Installment Interest Rate: 13% Security: Hypothecation on assets, two personal guarantees & post dated cheques MEMO NO-39/10 RESOLVED: All the members of the Board present in the meeting held on May 23, 2010 thoroughly have discussed each and every term and condition of the proposed SME Loan cheme and unanimously approved the same to be made effective from the first day of July, 2010. The Board however approved Taka 1000 crore, instead of Taka 500 crore to be disbursed among as many entrepreneurs as possible instead of among 5000 entrepreneurs, each with a minimum of Taka 5, 00,000. Any SME loan above Taka 10, 00,000, the Board decided, has to be approved by the Managing Director and any SME loan exceeding Taka 30, 00,000 by the Board.

Parimal Kanti Debnath Board Secretary Chairman, Board of Directors

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In reply to a request from the Institute of Business Administration, Dhaka, write in affirmative that your bank can accommodate maximum five students for internship with some conditions.

Agrani Bank
Head Office, Personnel Division Motijheel Commercial Area, Dhaka 1000 Tel: 957 3053 Fax: 957 3054 Email: abpd@agranibank.org
Our Ref: Internship/25/IBA/10 Sunday, May 23, 2010 Director Institute of Business Administration University of Dhaka, Dhaka SUB: INTERNSHIP Dear Sir: It is a pleasure to receive your letter dated May 21, 2010 requesting us to allow 10 students of your esteemed institute to do their internship on banking business in our bank. As you know, we have many branches in Dhaka city where there are not enough additional chairs and tables where we can accommodate many students to do their internship. Moreover, we have already granted about 150 students from different schools of business and management of different colleges and universities who are at present doing their internship in the city branches. We can accommodate 10 students of your institute to do their internship if they are interested to attend our branches in Munshiganj or Manikganj. But as you requested us to accommodate them in Dhaka city we can allow a maximum of five students to do their internship in five different branches located in Dhaka city on the following conditions: 01. The students must follow the rules and regulations as being practiced by our bank 02. Each student will be given Taka 150 everyday as lunch allowance 03. An internee may avail of the staff bus for his/her commuting to and from the branch 04. The student will have to work in each department the way a probationary officer works 05. The bank holds the right to cancel the approval of a students internship in our bank if s/he is found indulged in any activity that is contrary to our decorum and discipline If your authority agrees to the above conditions you are requested to send the students with your letters of recommendations to the undersigned on or before 27th of this month. Thank you so much.

Sincerely Maswood Alam Khan Deputy General Manager ________________________________________________________________________________________

Write a certificate to the effect that a certain student has completed internship in your bank showing the extent of experiences he has gathered.

One Bank
Purana Paltan Branch, Dhaka Telephone: 02-988 3324 Facsimile: 02-988 3325 Email: onebankpp@onebank.com
Our Ref: Internship Certificate/29/10 Sunday, May 23, 2010

To whom it may concern

This is to certify that Mr. Mesbahul Islam Chowdhury, a final year student of the Department of Finance, University of Dhaka, has successfully completed his one-month long internship in our Purana Paltan Branch from 01 March till 30 March, 2010. During his internship he showed extraordinary diligence and sincerity in performing his jobs assigned by the undersigned. He showed his keen interest in the Accounts Department and to our surprise he acquired acumen in almost all the sections of our branch. During his internship he often on his own used to enter data in different ledgers and books of accounts flawlessly. We wish him success in his professional career after completion of his studies in the Finance Department of the University of Dhaka.

Maswood Alam Khan Manager

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Write from the central bank to the Managing Director of a commercial bank regarding nonrealization of export proceeds in a large number of cases.

Bangladesh Bank
Foreign Exchange Department

Head Office, Motijheel, Dhaka Telephone: 02-988 3324 Facsimile: 02-988 3325 Email: bbforex@bangladeshbank.org Our Reference: Export Proceeds/Forex/33/10 Sunday, May 23, 2010 Managing Director Agrani Bank Head Office Motijheel Commercial Area Dhaka SUB: NON-REALIZATION OF EXPORT PROCEEDS Dear Sir: It is shocking to learn that some of your branches have miserably failed in realizing long due proceeds of exports from the respective overseas banks of the importers. In some instances the proceeds which were due to be credited in 2008 are yet to be realized. In this regard your principal branch seems to be pretty negligent with a staggering amount of USD 23 million still outstanding on account of receivable proceeds from exports. As instructed, a statement of outstanding realizable proceeds against individual export bills and concerned letters of credit is annexed herewith for your immediate intervention. Thank you so much. Maswood Alam Khan Deputy Director
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Write to the banker in a foreign country that the bank has failed to remit your banks export proceeds.

One Bank
Purana Paltan Branch, Dhaka Telephone: 02-988 3324 Facsimile: 02-988 3325 Email: onebankpp@onebank.com
Our Ref: LC No Hanover Trust 3344557985/Export Bill 96/10 Sunday, May 23, 2010 Manager Hanover Trust Bank New York USA

SUB: EXPORT PROCEEDS AGAINST YOUR LC # 3344557985 Dear Sir/Madam: It is quite surprising that your bank has not yet credited our account with the proceeds of exports made by our party M/S Prime Jute to your party Phoenix Traders, vide your LC # 3344557985though our party made the shipment back on December 15, 2009 and the consignment was duly received by your party. As you have not informed us about any discrepancies about the documents we sent to your end for collections we hoped that you would send the export proceeds. We request your esteemed bank to credit our account with the proceeds of US Dollar 23,000 along with interest thereon from the date of our claimant as soon as possible before we are compelled to take legal measures for realization of the proceeds.

Thank you so much. Sincerely,

Maswood Alam Khan ________________________________________________________________________________________ Write a letter informing a customer about the process of opening a fixed deposit account.

Agrani Bank
Nawabpur Branch 36 Nawabpur Road, Dhaka 1000 Tel: 957 3053 Fax: 957 3054 Email: abnp@agranibank.org
Our Ref: AG/Nawab/Dev/233/10 Sunday, May 23, 2010 Ms. Suraiya Begum 103 Dinanath Sen Road Gandaria Dhaka 1204 SUB: PROCESS OF OPENING A FIXED DEPOSIT ACCOUNT Dear Madam: Thank you for letter dated April 27, 2010 requesting us to let you know the process and formalities about opening Fixed Deposit Account with our branch.

You would be glad to know that opening a fixed deposit account is very easy. What you need to do is visit our branch with your national ID card and cash on any day during office hours. We will take not more than 20 minutes to open your Fixed Deposit Account for any amount for any term. We are enclosing with this letter a brochure on different products of deposit along with rules and rates of interest. For fixed deposit we offer 9% interest for a period of six months, 10% for one year and 12% for more than one year. Looking forward to serve you as your trusted bank. Thank you so much. Sincerely, Maswood Alam Khan Manager Enclosed: Deposit Brochure ________________________________________________________________________________________ Write in reply a letter to a customer informing him about formalities required for consumer loan to buy household goods.

Agrani Bank
Nawabpur Branch 36 Nawabpur Road, Dhaka 1000 Tel: 957 3053 Fax: 957 3054 Email: abnp@agranibank.org
Our Ref: ABnawab/Consumer Loan/07/10 Sunday, May 23, 2010 Mr. Mahbubul Alam Khan 17 Patla Khan Street Dhaka 1204 SUB: FORMALITIES FOR LOANS FOR BUYING HOUSEHOLD GOODS Dear Sir: Thank you so much for your letter dated 22 April, 2010 where you have requested us to let you know the formalities you have to complete in order to apply for loan to purchase household goods. You would be glad to know that we have loan product called Consumer Loan which we offer to a customer at an interest rate of only 12.50% repayable within three years at equal monthly installments, provided you are employed in a good organization on monthly salary which can cover the repayment installments after meeting own expenses. What you need to do is visit our office on any day along with National ID Card and a certificate from your employer on your monthly salary and a certificate from your bank that you have not availed any bank loan. If we get clearance from your employer and the Central Intelligence Bureau of angladesh Bank about your credit

worthiness it would take not more than 15 days to sanction a consumer loan of any amount for purchasing any household item like a freezer, a television, a sewing machine etc. Thank you for your interest in our bank. Sincerely,

Maswood Alam Khan Manager ______________________________________________________________________________________

Write a letter to a bank customer declining his loan application on the ground of specific unsafe conditions of his factory

Agrani Bank plc

Nawabpur Road Dhaka 1000 Phone: 956 2319 Fax: 956 2320 Email: agraninawab@agranibank.com.

Our Ref: AG/Nawab/LQA/233/09 May 06, 2009 Mr. Zubair Ahmed Paragon Hardware Mart 39, Nawabpur Road, Dhaka 1000 SUB: YOUR APPLICATION FOR A CASH CREDIT LOAN Dear Sir: You are our valued customer for a long time. Your transactions with us suggest that you have a good reputation in supplying hardware to a huge number of your clients. We are proud to find you as one of our prestigious account holders. We have received an application dated May 02, 2009 from your esteemed firm seeking a cash credit loan for Taka one million. You have also proposed to offer enough additional collateral securities to cover the loan. We wish we could offer you the loan as immediately as possible. But, during our recent inspection at your shop and the adjacent factory we found that your factory is not at all secure as regards the following: 01. The factory building is extremely old. The building, we are afraid, may collapse in case an earthquake hits Dhaka city 02. There is no boundary wall on the premises

03. The door and the windows of the warehouse are too old and rickety We take pain to say that our management wont be able to approve a cash credit for your firm if you dont improve the security problems mentioned above. Should you need further clarification please dont hesitate to contact us during office hours. We are always at your service. Thank you so much.

Maswood Alam Khan

Manager
________________________________________________________________________________________ Write a letter to your friend telling him about different kinds of loans your bank can offer and mention the terms and conditions he should fulfill to get loans. Rahim Manjil Comilla Wednesday May 6, 2009 Dear Mashuk, Hope this letter will find you happy and hearty. As you know, I already have under my belt three ears of banking experience in Bangladesh Krishi Bank (BKB). I know which products and services offered by a bank are good or bad. In your last letter you wanted to know whether it is possible on your part to avail of any loan from my bank to do any business. Well, you should decide first what kind of business you are planning to do and then you can choose which loan befits your need. However, here below, I am furnishing a list of our loan products along with a brief description on the terms and conditions. Go through the list minutely. BKB finances the following 8 (eight) priority sectors, namely: 01. Crop 02. Fisheries 03. Live Stock 04. Farm and Irrigation Equipment 05. Agro-based Industrial Project 06. S.M.E 07. Continuous Loan (Working Capital and Cash Credit) 08. Micro Credit (Small Loan) We also offer commercial and consumer loans. But, I will suggest you to take any of our agricultural loans, which bear lesser interest than any loan offered by any other bank. You must open an account with any branch of BKB near your proposed project.

If you like to know the details of terms and conditions of any of the above loans you have to visit any of our bank branches and discuss with the Manager or the Advance Officer. Broadly speaking, you must have property to offer as collateral securities to cover the loan you would be seeking. Among the loans, I think, the best would be a loan for SME. SME stands for Small and Medium Enterprise. Our bank has put emphasis on SME. In special cases you may avail of SME loan without even offering any additional collateral security. Should you need further clarifications dont hesitate to come to my office. Eagerly awaiting your next letter.

Sincerely,

Maswood Alam Khan ________________________________________________________________________________________

As a branch manager of a nationalized bank, write a letter to the proper authority of Bangladesh Bank, requesting him to take step for introducing Computer System i n all relevant sections of your bank.

Bangladesh Krishi Bank

Kawran Bazar Branch
Dhaka
Phone: 956 7389 Fax: 956 7390 Email: bkbkawran@bkb.com

Our Ref: Automation/BB/02/09 Thursday May 07, 2009 The Executive Director Banking Control Department Bangladesh Bank (Through proper channel) SUB: COMPUTER SYSTEM FOR CLEARING CHEQUES Dear Sir, We have come to learn that most of the banks all over the world no more take the trouble of carrying cheques physically all the way to the Clearing House for encashment through inter -bank transactions. Thanks to banking automation, cheques may nowadays be resented in the forms of images to issuing banks through automated clearing system based on network connectivity among banks through Internet.

It would be a world of good for our valued clients if such a system could be introduced in all the bank branches under the Clearing House, so that we could offer instant cash to our clients who would present on our counter cheques issued by clients belonging to a different bank. To ensure automation in all the relevant sections your authority may please take necessary measures to advise all the scheduled banks to automate at least their city branches, which operate under the Clearing House.

Thank you so much.

Manager
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Write a letter to proper authority with an appeal to grant money for treatment of a poor employee of your branch.

Bangladesh Krishi Bank

Kawran Bazar Branch Dhaka
Phone: 956 7389 Fax: 956 7390 Email: bkbkawran@bkb.com Our Ref: welfare/19/medical/09 Thursday May 07, 2009 The Chairman Board of Directors Bangladesh Krishi Bank Head Office, Motijheel, Dhaka 1000

(Through proper channel) SUB: A MEDICAL BILL FOR A SICK EMPLOYEE

Dear Sir, With due respect to our esteemed Board of Directors we like to inform you that Mr. Abdul Ahad is a peon of our Branch who has been serving our bank for the last 22 years with full sincerity and diligence. Ahad is not only a trustworthy employee of our branch; he is also very popular among our valued clients for his amiable demeanor. As ill luck would have it, Ahad had fallen sick about a month back. The doctor had diagnosed his

disease as colon cancer and advised him to undergo immediate surgical operation. If he is operated upon there is a good possibility that he would be completely cured. A total amount of Taka Two lac would be required for his medical treatment. We have already garnered about Taka One lac through individual donations. If your authority approved of Taka One lac for this poor employee as a special case on humanitarian grounds this man who has served our bank for such a long time may survive and again serve our bank. He is too poor to manage money on his own. Necessary medical certifications are attached herewith for your perusal. Thank you, sir. Sincerely,

Manager ________________________________________________________________________________________

Write to a friend about the office environment in your bank. Karim Manjil Brahmanbaria Saturday, May 09, 2009 My dear Shefali, Hope, this letter will find you hale and hearty. As you know, I have joined One Bank, Banani Branch, on May 02, 2009 as a Probationary Officer. On the first day, I had to approach the Manager of the Branch with trepidation. As I introduced myself and handed to him my joining letter he greeted me so warmly that I felt greatly relieved. The Second Officer of the Branch who also smilingly had received me introduced me to all the officials of the branch. I was given no work or training on the first day. The next day I was given some simple works like filling out some forms, reading some important circulars, etc. The branch is fully air-conditioned and nicely decorated. There are comfortable provisions inside our office for having prayers and taking lunch for all the officials. Though I was scared initially about my job in a bank now I feel home with all my colleagues who always inspire me to work in a team spirit. No more today. Awaiting your reply.

Sincerely,

Nasreen Zaman
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A client of your bank desires to take House Building loan from your bank and wants to know the rules and regulations of your bank in this respect. Write a letter to him giving him every detail of sanctioning such loan.

Agrani Bank plc

Ramna Branch Dhaka 1000
Phone: 956 2319 Fax: 956 2320 Email: agraniramna@agranibank.com
Our Ref: HBL/Circular No 36/AtoQ/233/09 Saturday, May 09, 2009

Mr. Raakeeb Reza Khan 39, Shantinagar, Dhaka 1000 SUB: ENQUIRY ABOUT RULES AND REGULATIONS OF HOUSE BUILDING LOAN

Dear Sir, It is our pleasure to find you as one of our valued clients for a long time. You have enquired to us to know about the detailed rules and regulations you have to follow if you want to avail of a house-building loan of Taka 30 lac from our bank. Broadly speaking, you must have a piece of land in Dhaka metropolitan city titled in your own name. You may seek loan either for constructing a new building or for any extension of a building if there is already a structure on the same land. In case of a new building you have to invest your own money (your equity) for the foundation of the proposed building. But, you dont need to invest any money if you seek loan for any extension of the existing building. The whole property must be unencumbered, that is, you have to make sure that the property is not mortgaged to any bank or any financial organization. If we sanction a house-building loan in you favor you have to mortgage the whole property with our bank. We will disburse loans in installments on completion of different phases of constructions. Enclosed herewith is a circular where you will find the detailed descriptions of the rules and regulations for house-building loan.

Feel free to contact us if you need any clarifications in this respect. Thank you. Manager

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As a manager of your bank, draft a circular letter to all officers and employees to be punctual in discharging their duties.

IFIC Bank
Gulshan Branch Dhaka 1212
Phone: 989 2319 Fax: 989 2320 Email: ificgulshan@ificbank.com
In-house Circular No 19/discipline/09 Saturday, May 09, 2009

It is observed with great concern that not all employees of our branch are punctual in discharging their duties. There is a clear instruction that every employee must report to our branch at least 15 minutes before 9 in the morning so that any client seeking any service at 9 sharp is not Frustrated. The lunch break is for 30 minutes and each prayer break is for 10 minutes. Nobody is supposed to leave office before closing and balancing their books of accounts. Some employees come to office even 30 minutes after 9; some spend more than 30 minutes for their lunch and more than 10 minutes for saying their prayers. If any employee is found violating the instructions as to punctuality in discharging their duties, stern administrative actions will be taken against them. We hope all colleagues will henceforth be punctual and sincere in discharging their duties with diligence and in a team spirit. Each and every employee must read this circular and acknowledge receipt by signing on the blank space of this notification.

Maswood Alam Khan Manger and Vice President

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Write a letter to a good account-holder thanking him for maintaining good banker customer relationship during the last three years.

Prime Bank
Malibag Branch Dhaka 1016
Phone: 975 2319 Fax: 975 2320 Email: primemalibag@primebank.com
Our Ref: Thanks/oldclient/SB-1023/39/09 Saturday, May 09, 2009

Mr. Babul Chandra Adhikari Apt # 6A, Century Tower, Malibag, Dhaka 1016 SUB: THANK YOU Dear Sir, It is our privilege and a huge pleasure to find you as a valued client of our bank for the last three years. The transactions in your savings account with us suggest that you are a good saver. Never you issued any cheques to anybody, which had to be bounced due to lack of fund with your account. We have also noted that you always enquire about welfare of each and every employee of our branch. We will never forget the kind gesture you have shown yesterday evening. Our cashier was sweating in tension as he found shortfall in his cash balance and you suddenly appeared with a smile telling him that you were overpaid Taka 500 by our cashier. The nation is proud of people like you!

Maswood Alam Khan Manager

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Write with politeness to an account holder to know from him whether TK 10,000 was paid to him in excess over the counter against his cheques yesterday.

Rupali Bank
Hotel Sheraton Branch Dhaka 1205
Telephone: 02-861 2700 Facsimile: 02-862 3210 Email: rupalisheraton@rupalibank.com

Our Ref: Enquiry/cash/client/731/09 Wednesday, May 14, 2009 Mr. S M Musabbir 49 Minto Road, Dhaka 1205 Dear Sir,

Strictly confidential

You would be unhappy to learn that Mr. Zainal Abedin, our cashier, had a hard time yesterday afternoon. He had to borrow money from his relations to square up with a shortfall of cash because he had paid someone over the counter an excess amount of Taka 10,000. On thorough checking of each and every instrument of the day we have found out some inconsistencies between the denominations mentioned on the overleaf of a bearer cheque and the value of the cheque. The bearer cheque of your Current Account was for an amount of Taka 70,000. We are afraid, our cashier perhaps unmindfully handed Taka 80,000 to the junior assistant of your office who was the bearer of the cheque. We have no right to embarrass you by this enquiry and our apprehension may be totally unfounded. But, as the cash was handed to your office employee we have dared to approach you. Hope, you as our most valued client would empathize with our situation and check with your office very discreetly. Please ignore this letter if you find out that no excess amount of cash was handed to your office assistant. Looking forward to taking a tea either at your gorgeous office or at our humble office. Thank you so much.

Maswood Alam Khan Manager

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In response to a letter of a bank customer give him in details the rules of opening a Letter of Credit (L.C) in your bank.

A B Bank

Kawran Bazar Branch

Dhaka 1207
Telephone: 02-961 2700 Facsimile: 02-962 3210 Email: abkawranbazar@abbank.com

Our Ref: Enquiry/answer/FEx/import/987/09 Wednesday, May 14, 2009

Mr. Babu Lal Paul 346 Tejgaon Industrial Area Dhaka 1214

SUB: RULES OF OPENING A LETTER OF CREDIT Dear Sir, Its a pleasant surprise to receive your enquiry on opening a letter of credit. Here below are the salient rules and requirements for opening a letter of credit: 01. Your company must have a current account with a bank branch 02. A trade license from the municipality 03. Import Registration Certificate (IRC) 04. A certificate on your solvency from your bank 05. Certificates on your companys TIN and VAT from the Revenue Board 06. LCA form to be duly filled out and signed 07. Some stamped and chargeable documents like DP Note, IMP form, Letter of Continuity etc. to be signed. Your bank will collect a confidential report from the concerned foreign bank about the exporters ability to supply the commodities you are to import. Your bank will also examine whether the importable commodities are permissible items and will crosscheck other info like HS Codes and the genuine price of the importable goods. Depending on your business background your bank will decide at what margin the Letter of Credit favoring you as an individual or a company can be opened safeguarding their interests. Should you need further details feel free to visit our branch at your convenience.

Thank you so much.

Maswood Alam Khan Manager

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Write a letter to a customer declining his request for waiver of interest on loan to his sick industry.

Ceylon Bank

Kawran Bazar Branch Dhaka 1207

Telephone: 02-956 2900 Facsimile: 02-956 2901 Email: ceylonmotijheel@ceylonbank.com

Our Ref: Waiver/decline/IDFD/303/09 Wednesday, May 14, 2009 Ms. Selina Begum Managing Director Sun Bread 35 Segun Bagicha Dhaka 1000 SUB: WAIVER OF INTEREST ON ACCOUNT OF SUN BREAD Dear Madam, We are sorry to inform you that it is not possible on the part of our bank to waive interests accrued on the project loan favoring Sun Bread on the following grounds: 01. The breads and biscuits of your brand are in high demand in the market. 02. There is no reason for us to believe that your industry has been really sick as we have gathered intelligence that all the sale proceeds of the products of Sun Bread are regularly deposited with an account your company has been maintaining with a different bank, a fact you have never disclosed to us. 03. You have availed of a C.C. loan of Taka 10 lac from a different bank for your working capital and your company has religiously been adjusting that loan without any fail; on the other hand, you have defaulted two consecutive installments against the project loan you have availed from our bank. You are hereby advised to pay in full the overdue installments within first week of June 2009; otherwise, we would be compelled to foreclose your mortgaged properties. Should you need to clarify your position, feel free to contact us through e-mails.

Thank you, Maswood Alam Khan Manager

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Draft a circular letter to bank branches for taking specific cautionary measures in sanctioning house-building loans to the members of public.

Agrani Bank plc

Head Office, Motijheel Commercial Area

Dhaka 1000

(General Credit Division)

Telephone: 02-956 3111 Facsimile: 02-956 3222 Email: agranigeneralcredit@agranibank.com

Circular No: 234/HBL/CAUTION/09 Wednesday, May 13, 2009 Of late, it is being observed that some of our branches have been sanctioning long-term loans for house building a bit recklessly and without ta king cautionary measures as to the builders equity and the income generating capacity of the building being financed. All concerned are hereby advised to strictly abide by the terms and conditions as stipulated in the Circular Number 19 dated 12 Jan 1987 while evaluating a proposal of house-building loan. Special attention must be given to the valuation of both landed and building properties keeping in mind that in view of impending recession the present value of real estate in Bangladesh may suddenly plummet as had happened in North America that has sparked the ongoing financial meltdown all over the world. Any deviation from instructions as enunciated in the Loan Manual and in circulars issued from time to time as to house-building loan will be seriously taken and meted out with stern administrative actions. Each and every official is instructed to read this circular and put his or her signature in the blank space of this notification. Khondoker Waliur Rahman General Manager

Operation Wing Copies to: 01. Staff Officer to Managing Director 02. All General Managers, DGMs and AGMs 03. All Regional Managers 04. All Managers 05. Office file
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Write a letter to your friend narrating your experiences of attending a seminar on Credit Risk Analysis.

103 Dinanath Sen Road Gandaria, Dhaka 1204 Thursday, May 21, 2009 Dear Kamal, Last Saturday I had attended a seminar that has opened my eyes to a very vital task every banker, like you and me, must learn. It was a seminar on credit risk analysis organized by IBB and was held at the auditorium of BIBM in Mirpur. Many junior and senior bankers attended the seminar. I would not have attended the seminar if my manager had not advised me to attend the seminar on his behalf as he had an appointment at the same time when the seminar was held. As you know, credit risk is the risk of loss due to non-payment of a loan. Banks employ their own models to rank potential and existing customers according to risks, and then apply appropriate strategies. What we learned in the seminar is how to maintain credit risk exposure within acceptable parameters by maximizing a banks risk-adjusted rate of return. Bankers usually trade off the cost/benefits of a loan according to its risks and the interest charged. Higher the risk, higher is the rate of interest. But interest rates are not the only method to compensate for risk. Protective covenants are written into loan agreements that allow the banker some controls. Since exposure to credit risk continues to be the leading source of problems in banks, banks and their supervisors should be able to draw useful lessons from past experiences. Banks should have a keen awareness of the need to identify, measure, monitor and control credit risks as well as to determine that they hold adequate capital against these risks. If you are interested, I may send you by courier photocopies of a variety of documents and brochures I was given in the seminar. Thank you so much. Lutfur Rahman (Your friend in need)
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As a Branch Manager of your bank write a letter to the proper authority of your Head Office with a request to increase the medical facilities for the employees of your bank.

Agrani Bank plc

Brahmanbaria Branch Brahmanbaria

Telephone: 05-3320 Fax: 05-3321 Email: agranibbaria@agranibank.com Our Ref: Med/Prop/09 Thursday, May 21, 2009 General Manager Administration Division Head Office, Motijheel, Dhaka 1000 SUB: ENHANCEMENT OF MEDICAL FACILITIES Dear Sir, With due respect to your esteemed authority we like to inform you that our Brahmanbaria Branch had earned a net profit of Taka 62 crore in the last year ending 31 December 2008. This branch being a commercially very important branch all the employees have to remain in the office everyday till 7 in the evening to complete their daily works. Some of the employees have to come to office even on holidays to balance some books of accounts. Twelve male employees and seven female employees are employed in this branch. Some of the employees are elderly people in their late 40s. As you know, there is only one medical practitioner who has been appointed by our bank. Sick employees or their dependents have to travel about one mile to visit the medical practitioner in his chamber. It would be a world of good to all our employees if your authority could employ one male and one female medical practitioner at a little higher salary so that the practitioner could visit our branch every alternate day in the afternoon. Such welfare arrangement, if granted, will immensely benefit our employees and will contribute to better delivery of works from our employees. Thank you so much. Sincerely, Abdul Quader Khan Manager

Principles of Economics and Bangladesh Economy:Supply Analysis

BANKING DIPLOMA EXAMINATION Banking Diploma Courses under The Institute of Bankers, Bangladesh(IBB) Principles of Economics and Bangladesh Economy-JAIBB Supply Analysis

Q.1 What is Supply and Its Determinants? Ans.: Meaning : The supply of good is the quantity offered for sale in a given market at a given time at various prices. For example, total seller of a given market of a certain crops like paddy supply in various prices within a day .

Thus, the important features of supply may be concluded as:(i) It is the quantity of commodity offered for sale in the market at various prices. (ii) It is flow and is always measured in terms of time. Determinants of Supply are follows: (i) Price of the Good (ii) Price of Related (iii) Price of Factors of Production (iv) State of Technology (v) Government Policy (vi) Other Factors: Includes various individual policies, exchange policies, trade policy etc. Time is another important factor influencing supply e.g. it is quite difficult to adjust the supply to the changing conditions in the short period. But such adjustments in supply become easy if the time period is long. Again, transparent and infrastructural facilities positively affect the supply of a good.