Beruflich Dokumente
Kultur Dokumente
On
Probashi Banking Operation of BRAC
Bank Ltd.
Submitted to:
MD. Tanvir Pavel
Senior Lecturer
Faculty of business
ASA University Bangladesh
Submitted by:
Name Id No:
Md. Abdul Khalek (L) 091-12-0125
Rajesh Banik 091-12-0128
Suvra Saha 091-12-0106
Minarul Karim Mishu 091-12-0118
Rupasree Mukherjee 102-12-0058
Sharmin Aktar Trisha 091-12-0124
Date of Submission
19.08.2010
Latter of transmittal
19 July, 2010
To
Md. Tanvir Pavel
Course Instructor,
Money & Banking
ASA University Bangladesh
Department Of Business Administration
Honorable Sir,
We are pleased to submit the report on “Probashi Banking
Operation of BRAC Bank Ltd.” that you have assigned us to
prepare as a partial requirement of “Probashi Banking Operation”.
Throughout the report, we have made best effort of our capacity to
accommodate as much information and their related issues as
possible and tried to follow the instructions that you have
suggested. We sincerely believe that it will satisfy your
requirements.
Sincerely Yours,
Md. Abdul Khalek
On behalf of our group members
(i)
Acknowledgement
I express my heartiest gratitude to Md. Tanvir Pavel, Course Instructor, Money &
Banking, and Department Of Business Administration for giving me an opportunity to
prepare a report on the project assigned tome. This report is the out come of our
Money & Banking subject. To prepare this report titled “Probashi Banking Operation
of BRAC Bank Ltd.”, we have taken help from different sources, such as Executive
officer of BRAC Bank, annual book, Internet etc. We knew lot of things about
Probashi Banking Operation and its management. We extend our sincere thanks and
deep gratitude to all of them. We are very much grateful to the executive officer
(Finance Department) of BRAC Bank (Ring Road Branch) Mr. Fazla-Rabbi who has
given the opportunity to gather information about their organization.
Especially we would like to thanks to our honorable course teacher Md. Tanvir Pavel,
senior Lecturer, Department Of Business Administration, ASA University
Bangladesh. Without his help it was quit difficult for me to complete this report
successfully in time.
Executive Summery
Eastern Bank Limited (EBL). is one of the talented private banks in Bangladesh.
The principal activities of Eastern Bank Limited are Trade Financing, Corporate
Banking, Private Banking & Retail Banking. The objective of our report is to
learn Probashi Banking Operation of Eastern Bank to identify the opportunities,
Problems & to make some recommendations against these problems in
Probashi Banking Operation.
Table of Contents
Introduction
Secondary Data
To furnish the report properly information we were mainly taken from annual
report 2010 & Internet.
Primary Data
To preparing that report, we conducted with the Executive Officer of BRAC
Bank Ltd. at ring road branch.
Besides this, it was very difficult to carry out the whole analysis on the
basis of limitation scope of study.
(ii)
CHAPTER: 03
PROBASHI BANKING
3.1 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 pay out
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!
TERMS & CONDITIONS
1 Governing Laws, Regulations and Rules: These terms and conditions
shall apply to such accounts and services as offered by the Bank to its
customers, existing or new, from time to time. The Terms and Conditions
herein shall be governed by the laws, rules and regulations of the Central
Bank of Bangladesh, Government of Bangladesh and the Bank's policies
and practices.
3 Information about Customers: It is the Bank's policy that it will offer high
quality services to Customers but not to Customers who are engaged in
illegal activities and activities that are harmful to the welfare of the people of
the country. It is therefore necessary for the Bank to obtain information
about its that are true and correct. The customer agrees to provide the Bank
such information, particulars and documents as the Bank may require from
time to time in connection with the customer's financial condition,
background and dealings with banks and businesses. The customer
confirms that all information, particulars documents that the customer
provides are true, correct and complete and that if there are any changes to
the information provided, the customer will inform the Bank in writing. The
customer authorizes the Bank to obtain any information that the Bank
considers necessary from other banks, organizations and sources that
provide information relative to the customer's financial conditions. It is the
Bank's policy to maintain confidentiality of customer information. the laws
and regulations in Bangladesh may require disclosure of customer
information to Government organizations and/or regulatory organizations
such as the Bangladesh Bank. The Bank may also consider sharing
customer information in a waythat itconsiders mostsuitable withother
organizationsto improve banking services. The customer authorizes the
Bank to disclose or share information at the sole discretion of the Bank and
indemnifies the Bank from any accidental disclosure of information during
the process of printing, transportation and filing of information.
4 Fees: The Bank shall be entitled without notice to levy or impose all
customary banking and other charges and expenses (including collection
fees and legal expenses) in respect of any account or in respect of any
other banking facilities provided to the customer by the Bank and to debit
the relevant account(s) in accordance with the Bank's normal banking
procedures. Such charges are not refundable upon termination of any or all
of a customer's account(s).
5 Credit of the Account: The Bank acts only as the collecting agent and
assumes no responsibility for the realization of any items deposited with the
Bank for collection. Thus, proceeds of cheques or other instruments
deposited are not available for withdrawal until collected by the Bank. The
Bank reserves the to debit any account that may have been inadvertently
credited with an item subsequently unpaid on collection.
8 Closure of Accounts: The Bank reserves the right to close any account or
related service without giving prior notice if the conduct of the account is
unsatisfactory in the opinion of the Bank or for any other reason(s)
whatsoever. The Bank shall pay to the customer all available and finally
collected balances all dues to the Bank have been recovered/realized at the
time of the closure of the accounts.
11 Deposits, Withdrawals and Banking Facilities: The Bank shall meet its
obligations exclusively at the branch office where the account is maintained
by the customer. When appropriate telecommunication is possible, deposits
or withdrawalsof money may be made at any of the Bank's branches in
Bangladesh subject the terms and conditions of the Bank. The customer
shall ensure that there are sufficient funds (or pre-arranged credits) for the
Bank to honour cheques the Bank or for debits to the account in accordance
with instructions made by the customer for his/her account provided always
that the Bank may, at its, sole discretion carry out the instruction
notwithstanding such inadequacy and may do so without seeking prior
approval from or notice to the customer and the shall be responsible to
repay the resulting overdraft, advance or credit thereby or created and for all
related charges.
16 Service Disruption: The customer agrees that the Bank will not be liable
for any loss or any damage if it is unable to provide services in connection
with any customer accounts due to postal, courier, electrical, mechanical,
telecommunications or computer failure or an act of God, catastrophe, war,
civil or industrial disturbance.
17 No Liability for Loss: The customer agrees that the Bank will not be liable
for any loss, damage or liability incurred by the customer in connection with
any of its account with or services provided or agreed to be provided by the
Bank or inaction on part of the Bank or any of its officers, agents,
employees and representatives. The customer agreed not to hold the Bank
liablefor any loss or damage arisingfrom: (A) non-discovery of any forgeries
or frauds, except to the extent that the Bank has acted with gross
negligence, (B) the Bank closing the customer account for whatever reason
whatsoever, (C) directly or indirectly, the error, failure, negligence, act or
omission or any other, person, system, institution or payment infrastructure.
3.3.3Required Documents
Photo:
2 pp size
3.3.5 Identification:
Photocopy of Valid passport (6 pages) with due attestation. In case of foreign
passport attested photocopy of ‘no visa required for travel to Bangladesh’
page required.
Identification:
Photocopy of Valid passport (6 pages) with due attestation. In case of foreign
passport attested photocopy of ‘no visa required for travel to Bangladesh’
page required.
Valid VISA:
Entry VISA with due attestation. If it is in any other language other than
English, no translation is required.
Work/Residency Permit:
Not required. However it may be taken when visa is not valid to prove that
applicant is legally residing abroad.
Address Proof:
• Address proof document (Any one):
• Resident Permit
• Work ID
• Utility Bill
• Pay Slip
• Driving License
• Government issued ID card
• Credit Card Bills
• Rent Receipts
• Over seas Bank Statement
• Citizenship card / Health Card / Green card / Social Security card
• Job Contract Letter
• PO BOX no. will be accepted if the company's name against the PO
Box no. is the same as mentioned in employee's office address
3.5 Probashi Fixed Deposit
A fixed deposit account allows you to deposit your money for a set-period of
time, there by earning you a higher rate of interest in return. Fixed Deposits
can be made from 3 months to 3 years. Interest is paid on the maturity at a
very attractive rate. ** This account will be maintained in Taka.
3.7 Investment
3.7.6 Features
• NRBs can invest into the Bangladeshi Capital Market from anywhere in
the world
• Custodian Service will be provided by BRAC Bank
• 100% repatriation of capital, dividend and investment profits
• NRBs can apply for IPOs as well as buy and sell shares in the
Secondary Market through BRAC Bank Limited. They can use e-mail,
fax or phone to issue trade orders to BRAC Bank Limited
UAE
02. Wall Street Exchange Center PO Box: 3014, Nafi Road, Derai Dubai, UAE
L.L.C. Tel: 009714 2269026
03. Lari Exchange Establishment Liwa Street, Saif Bin Darwish Building, Abu Dhabi, U. A.E
Tel: 009712-6223225
05. Habib Exchange Co. L.L.C Central office Hamden Street, P.O.Box 2370, Abu Dhabi, UAE,
Tel: 026272656
06. Al- Ahalia Money Exchange P.O. Box No-2419,Abu Dhabi, U.A.E.
Bureau Tel. 00971 2 6270004
07. Al Ansari Exchange Company P.O. Box 325, Al AmiN Tower, Liwa Street, Abu Dhabi, UAE.
TEL: 9712 6227888
08. Economic Exchange Centre 116/356 Naif Road, Opposite Al Ghurair Exchange
P.O. Box No 116496, Deira Dubai, U.A.E.
Tel: 00971 4 2717575
KSA
14. Alamoudi Exchange. Co. KSA Gabil Street (Near Mahmal), Balad, Jeddah- 21411, K.S.A
Tel: 00966-26474515
QATAR
15. Union Exchange Co. WLL, Al Mushirib Road, Sarah Kahrba, Doha, Qatar
Qatar Tel: 00974-4423715
BAHRAIN
16. Dalil Exchange, Bahrain Al Noor Building, Near Bab Al Bahrain on Government Avenue Road, Manama,
Bahrain
Tel: 00973-17223464, 225997
Chapter- 4
Finings & Analysis
Profitability Analysis
How Banks Use Profitability Analysis
Determining the profitability of each customer is not easy. Modern profitability
software adds up the revenues from each account, and subtracts the bank’s
costs on a monthly basis. The costs include the cost of the funds, provision for
losses, overhead, deposit insurance, and customer’s usage of bank services.
Profitability software is still in its infancy. It offers a real challenge for software
providers to deliver an outstanding product. It will be particularly useful for
advanced data applications.
Once the software has determined the profitability of each account each
month, each customer’s total profitability has to be computed by adding
together the profits or losses from each of his accounts. When banks first do
this calculation, it often comes as quite a shock. Some, like the Fleet Bank,
have found that as many as half of their total customers are unprofitable.
Many will never be profitable. Their marketing staffs are busy working to
acquire and retain people who destroy value for the bank!
The top two segments, representing 16% of the bank’s customers, were
responsible for 105% of the bank’s total profit. The bottom 28% represented a
loss of 22% of the profit. This picture is typical of many banks.
What are banks doing about this situation? In the first place, few banks have
reached the this stage yet, and most of those have not developed any
conscious strategies to deal with the problem. Those that have developed a
plan, however, have come up with some innovative ideas.
Most are working very hard to retain the customers in the top two groups.
These are designated as Gold customers. Banks try to extend special
services to them. Gold customers call in on special toll free lines. Branch
managers are furnished with the names of their top customers, and are
instructed to meet and greet them when they visit a branch. They are
assigned personal bankers, who call and introduce themselves.
Customers who visit branch offices cost the bank considerable money. It is
much more economical for customers to use an ATM, mail, or PC banking.
For this reason, some banks have tried to discourage branch visits by
charging a fee. Profitability analysis shows that such policies may be a
serious mistake. As the above chart indicates, branches are visited most by
two groups: the most profitable and the least profitable. Policies that turn
away unprofitable customers may also turn off Gold customers.
Beyond Profitability
Profitability only measures the past. Lifetime value projects this into the future,
and looks at what each customer can do for the bank in the coming years.
Fleet Bank, for example, determines customer profitability and lifetime value
each month, and also computes potential lifetime value if the customer can be
talked into purchasing the most likely next products. In this way, Fleet
manages its customer relationships in a highly professional manner. We will
be covering lifetime value in a future article.
Investment Analysis
BRAC Bank launches 'Probashi Biniyog' for NRB investors
BRAC Bank Limited officially launched a new service whereby the Non-
Resident-Bangladeshis (NRBs) can invest into the capital market of
Bangladesh.
'Probashi Biniyog' is a new financial solution from BRAC Bank whereby that
will enable NRBs open BO accounts, buy and sell stock in both primary and
secondary markets, and repatriate the profit to their country of residence.
BRAC EPL Securities Ltd, a concern of BRAC Bank, will provide the stock-
exchange related services while the solution will be available to all NRB
customers of BRAC Bank. .
Sir Fazle Hasan Abed, Founder Chairman of BRAC Bank Limited was present
at the event as the Chief Guest to unveil this new product with the presence of
Mr. Muhammad A. (Rumee) Ali, Chairman and Mr. A. E. A. Muhaimen,
Managing Director & CEO, BRAC Bank Limited and Mr. Saiful Islam, Vice
Chairman, BRAC EPL Stock Brokerage Limited. .
Currently, no other bank is providing this kind of a service. The Stock Market
in Bangladesh has seen surge of investment, but the percentage of NRBs in
the market has remained negligible as there was no formal solution for them
to invest into secondary market from abroad. Through 'Probashi Biniyog', the
NRBs can operate their accounts online from abroad. All share related
services such as NITA, BO and stock broking accounts are being offered
under one umbrella of 'Probashi Biniyog'.
In expression of launching 'Probashi Biniyog', Sir Fazle Hasan Abed said, "I
am proud to inaugurate Probashi Biniyog which will provide one-stop solution
to NRBs for investing in Bangladesh Capital Market from abroad. I believe this
will strengthen the investment at the Stock Markets.” .
In the ceremony, Mr. Muhammad A. (Rumee) Ali said, 'This was a long
awaited product by NBRs for performing online transaction to buy and sell
shares from abroad. Together, BRAC Bank and BRAC EPL has made this
solution possible." .
Under the Probashi Biniyog, NRBs can apply for IPOs as well as buy and sell
shares in the Secondary Market through BRAC Bank Limited. They can use
e-mail, fax or phone to issue trade orders to BRAC Bank Limited.
There will be 100 per cent repatriation of capital, dividend and investment
profits.
They said such a move will help the stock market grow further. .
Market operators said a huge number of NRB investors will be benefitted with
the new product
I believe the new product will help the Bangladesh market go wide through the
international services,” a local ionvestor said.
Financial ratio analysis is the calculation and comparison of ratios which are
derived from the information in a company's financial statements. The level
and historical trends of these ratios can be used to make inferences about a
company's financial condition, its operations and attractiveness as an
investment.
Financial ratios are calculated from one or more pieces of information from a
company's financial statements. For example, the "gross margin" is the gross
profit from operations divided by the total sales or revenues of a company,
expressed in percentage terms. In isolation, a financial ratio is a useless piece
of information. In context, however, a financial ratio can give a financial
analyst an excellent picture of a company's situation and the trends that are
developing.
A ratio gains utility by comparison to other data and standards. Taking our
example, a gross profit margin for a company of 25% is meaningless by itself.
If we know that this company's competitors have profit margins of 10%, we
know that it is more profitable than its industry peers which is quite favourable.
If we also know that the historical trend is upwards, for example has been
increasing steadily for the last few years, this would also be a favourable sign
that management is implementing effective business policies and strategies.
Financial ratio analysis groups the ratios into categories which tell us about
different facets of a company's finances and operations. An overview of some
of the categories of ratios is given below. .
Leverage Ratios which show the extent that debt is used in a company's
capital structure.
.
Liquidity Ratios which give a picture of a company's short term financial
situation or solvency.
.
Operational Ratios which use turnover measures to show how efficient a
company is in its operations and use of assets.
.
Profitability Ratios which use margin analysis and show the return on sales
and capital employed.
.
Chapter- 5
SWOT Analysis
SWOT Analysis .
SWOT analysis is done for a company, to find out its overall Strengths,
Weaknesses, Threats and opportunities leading to gauging the competitive
potential of the company. .
Strengths
• Stable Sources of Funds
• Strong Liquidity Position
• Satisfactory Profitability
• Experienced top management
• Satisfactory capital base
.
Weaknesses
Threats
opportunities
Vision
BRAC Bank will serve its customers with respect and will work very hard to
instill a strong customer service culture throughout the bank. It will treat its
employees with dignity and will build a company of highly qualified
professionals...