Difference in the Deposit Products /Service: ISLAMI BANK BANGLADESH LIMITED VS BRAC BANK

Khondokar Kamran Bin Khaled Tasnima Azam Dola Biswas

2008-1-10-152 2008-2-10-279 2008-3-10-202 2008-3-13-067

Quazi Sagota Samina

Senior Lecturer Department Administration East West University 10/18/2011 of Business

MD. Mahadi Hasan

Course: Management of Commercial Banks Course Code : Fin 380 Sec : 01

TABLE OF CONTENTS

ISL AMI P roduc ts : D epos it D ifferenc e in the

Section 2 : ISLAMI BANK BANGLADESH LIMITED ............................................................. 6 BACKGORUND .............................................................................................................. 6

Chapter 2 : Retail Banking (Deposit schemes and services) ....... 8

2.(I). BRAC BANK .............................................................................................................. 8 Section 1: Deposit Products (Savings Accounts) .......................................................... 8 2.(i).1.A. Triple Benefit Savings account

...................................................... 8

2.(i).1.B Savings Classic Account ............................................................... 9 2.(i).1.C Aporajita Savings Account ............................................................ 9 Section 2: Deposit Products (Current Account) ......................................................... 10 2.(i).2.A. Current Classic Account ............................................................ 10 2. (i).2.B Current Plus Account ............................................................... 10 2. (i).2.C Ezee Account ........................................................................ 10

BAN GL ADE SH

LIMITE D

VS

BRAC

Background of the BRAC BANK LIMITED ...................................................................... 4

BANK

Section 1 : BRAC BANK ..................................................................................................... 4

BANK

Chapter 1: Introduction .............................................................. 4

2. (i).2.D. Salary Account ..................................................................... 11 2. (i).2.E. Campus Account ................................................................... 11

BANK ISL AMI P roduc ts : D epos it D ifferenc e in the BAN GL ADE SH LIMITE D VS BRAC BANK

Section 3: Deposit Products (term depost) ................................................................ 11 2. (i).3.A. DPS( Deposit Premium Scheme) .................................................. 12 2. (i).3.B. Fixed Deposit General ............................................................. 12 2. (i).3.C. Flexi Deposit Premium Scheme (Flexi DPS) ...................................... 12 2. (i).3.D. Interest First Fixed Deposit (IFFD) ................................................ 12 2.(II) ISLAMI BANK ......................................................................................................... 13 SECTION 1: DEPOSIT PRODUCTS (SAVINGS ACCOUNTS) ........................................... 13

2. (II).1.a. Al-Wadeeah Current Account ................................................... 13

SECTION 2: DEPOSIT PRODUCTS (CURRENT ACCOUNT) ............................................ 13 2. (II).2.a. Mudaraba Savings Account ...................................................... 14 Section 3: Deposit Products (term depost) ................................................................ 14 2. (II).3.a. Mudaraba Waqf Cash Deposit

.................................................. 14

2. (II).3.B. Mudaraba Hajj Savings Account ................................................. 15 2. (II).3.c. Mudaraba Muhor Savings Deposit Scheme ..................................... 15 2. (II).3.d.Mudaraba Monthly Profit Deposit Scheme ..................................... 15

2. (II).3.e.Mudaraba Term Deposits: ............................................................................... 16 2. (II).3.F.Mudaraba Special Notice Deposits (SND)

....................................... 16
BANK ISL AMI P roduc ts : D epos it D ifferenc e in the BAN GL ADE SH LIMITE D VS BRAC BANK

2. (II).3.G.Mudaraba special savings (pension) account ................................... 17

Chapter 3: Interest Rate Comparison of BRAC Bank and Islami Bank Bangladesh Limited .......................................................... 18
Section 1: Savings Account ......................................................................................... 18 Section 2: Current Account ........................................................................................ 19 Section 3: Deposit Products (term depost) ............................................................... 20

Chapter 4: Conclusion...24 Bibliography:............................................................................. 24

CHAPTER-1

ISL AMI P roduc ts : D epos it D ifferenc e in the

BANK BAN GL ADE SH LIMITE D VS BRAC BANK

INTRODUCTION

Section 1 : BRAC BANK

BACKGROUND OF THE BRAC BANK LIMITED BRAC Bank Limited, one of the latest generation of commercial banks started its journey on July 04, 2001. It is an affiliate of BRAC (Bangladesh Rural Advancement Committee), one of the worlds largest non-governmental development organizations founded by Sir Mr. Fazle Hasan Abed in 1972. It has been the fastest growing Bank in 2004 and 2005. 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. Participation in the Bangladesh economy through the provision of high quality banking services BRAC Bank doing this by increasing access to economic opportunities for all individuals and business in Bangladesh with a special focus on currently under-served enterprises and households across the rural urban spectrum. BRAC Bank believes that the pursuit of profit and developmental goals is mutually reinforcing. BRAC Bank intends to set standards as the Market leader in Bangladesh by providing efficient, friendly and modern fully automated online service on a profitable basis. It produces earnings and pay out dividends that supports the activities of BRAC, the Banks major shareholder. BRAC Bank goal is to provide mass financing to enable mass production and mass consumption, and thereby contribute to the development of Bangladesh.

Aiming at offering commercial banking service to the customers door around the country, BRAC Bank limited established 77 branches up-to this year. This organization achieved customers confidence immediately after its establishment. Within this short time the bank has been successful in positioning itself as progressive and dynamic financial institution in the country. The is now widely acclaimed by the business community, from small entrepreneur to big merchant and conglomerates, including top rated corporate and foreign investors, for modern and innovative ideas and financial solution. BRAC Bank has fast growing small business lending, remittance, savings mobilization and consumer lending businesses. 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 ATMs across the country.The authorized capital of BBL is Tk. 1000 million and paid up capital of the same bank is Tk. 1200 million.
BANK ISL AMI P roduc ts : D epos it D ifferenc e in the BAN GL ADE SH LIMITE D VS BRAC BANK

BRAC BANK LTD ...At a glance

Name of the bank

BRAC Ltd

Bank

Status

Public company Ltd.

Incorporated at Inauguration of the first branch Inauguration of the CDA Avenue Branch

20 May 1999 4 July 2001 24 December 2007

th th

Head Office

1, Gulshan Avenue Gulshan, Dhaka-1212 Bangladesh

Chairman

Mr. Muhammed A Rumee Ali

Managing Director Manager of CDA Avenue Branch No. of employees of CDA Avenue Branch Asset growth by Liabilities growth by

Mr. A. E. A. Mohaimen Syed Arshaadul Huq 20 (permanent) 103 % 65 % 80 %

BANK ISL AMI P roduc ts : D epos it D ifferenc e in the BAN GL ADE SH LIMITE D VS BRAC BANK

Find Under Management growth by

Number of Deposit Account

200000

Number of Advance Account Number of Branches ATM Booth

50000 57 177

Section 2 : ISLAMI BANK BANGLADESH LIMITED

BACKGORUND Bangladesh is one of the largest Muslim countries in the world. The people of this country are deeply committed to Islamic way of life as enshrined in the Holy Qur'an and the Sunnah. Naturally, it remains a deep cry in their hearts to fashion and design their economic lives in accordance with the precepts of Islam. The establishment of Islami Bank Bangladesh Limited on March 13, 1983, is the true reflection of this inner urge of its people, which started functioning with effect from March 30, 1983. This Bank is the first of its kind in Southeast Asia. It is committed to conduct all banking and investment

activities on the basis of interest-free profit-loss sharing system. In doing so, it has unveiled a new horizon and ushered in a new silver lining of hope towards materializing a long cherished dream of the people of Bangladesh for doing their banking transactions in line with what is prescribed by Islam. With the active co-operation and participation of Islamic Development Bank (IDB) and some other Islamic banks, financial institutions, government bodies and eminent personalities of the Middle East and the Gulf countries, Islami Bank Bangladesh Limited has by now earned the unique position of a leading private commercial bank in Bangladesh.
BANK ISL AMI P roduc ts : D epos it D ifferenc e in the BAN GL ADE SH LIMITE D VS BRAC BANK

Islami Bank Bangladesh Limited At a glance:

Name of the bank Status Date of Incorporation Formal Inauguration Share of Capital Local Shareholders 41.77% Islami Bank Bangladesh Limited Public company Ltd. 13th March 1983 12th August 1983

Foreign Shareholders Authorized Capital Paid-up Capital Deposits Investment(including Shares) Import Export Remittance Investment in

58.23% Tk. 20,000.00 million Tk. 10,007.71 million Tk.32,830 crore Tk.32,349 crore

Tk.19,429 crore Tk.12,774 crore Tk.15,746 crore

Branches Total number of Branches Number of AD Branches Number of Shareholders Manpower 245 43 63001
BANK ISL AMI P roduc ts : D epos it D ifferenc e in the BAN GL ADE SH LIMITE D VS BRAC BANK

11,033

CHAPTER-2

RETAIL BANKING (DEPOSIT SCHEMES AND SERVICES)

2.(I). BRAC BANK

SECTION 1: DEPOSIT PRODUCTS (SAVINGS ACCOUNTS) Savings Accounts of BRAC Bank Ltd:

2.(I).1.A. TRIPLE BENEFIT SAVINGS ACCOUNT

Account opening balance: BDT 50,000 only. Interest rate of up to 8% p.a., credited to the account every month. No Debit card Fee and no yearly/ half yearly Account maintenance Charges. First cheque book of 12 pages for free. There is a 10% tax on the interest earned in the savings account. There is also Government Excise Duty on the deposit/ balance level of the account. Customer gets half yearly statements (every six months) in the TBS account. The depositor can withdraw maximum TK. 20000 from the ATM booth and TK. 100000 from the POS machine.

2.(I).1.B SAVINGS CLASSIC ACCOUNT

Savings Classic Account offers interest rate of 5.5% p.a. The minimum account opening balance requirement is BDT 15,000. Any balance greater than
BANK ISL AMI P roduc ts : D epos it D ifferenc e in the BAN GL ADE SH LIMITE D VS BRAC BANK

zero will be eligible for interest. The account maintenance fee is BDT 300 + VAT for every half year. Annual Debit Card Fee is BDT 600 + VAT. The account offers free cheque book facility provided the minimum balance is maintained. Savings Classic Account Fund Transfer, closing of Savings Classic Account is same as the individuals Triple Benefits Savings Account.

2.(I).1.C APORAJITA SAVINGS ACCOUNT

Aporajita Account is a savings account for female customers. This account offers interest rate of 6.5% p.a., credited to the account on a monthly basis. The minimum account opening balance requirement is BDT 5,000. Any balance of greater than zero will be eligible for interest. There is no Annual Account Maintenance Fee. Annual Debit Card Fee is BDT 600 + VAT. This is a non-cheque-book account. Tax rate on the Interest & on the Aporajita Savings Account is same as the individuals Triple Benefits Savings Account. Customers will not get any cheque book for the Aporajita Savings Account. Section 3: Deposit Products (Current Accounts).

SECTION 2: DEPOSIT PRODUCTS (CURRENT ACCOUNT)

2.(I).2.A. CURRENT CLASSIC ACCOUNT

BANK ISL AMI P roduc ts : D epos it D ifferenc e in the BAN GL ADE SH LIMITE D VS BRAC BANK

Current Classic Account is a non interest-bearing account with cheque book & VISA Debit card facility. The minimum account opening balance requirement is BDT 15,000. The account has a maintenance fee of BDT 500 + VAT for every half year and Annual Debit Card Fee is BDT 600 + VAT. The account comes with a 12 page cheque book free. Customers can close a savings account by filling in an account closing form. Customers can withdraw all the amount end leave the funds to meet the account closing charges. Customer can also transfer the money left to another BBL account by fund transfer option.

2. (I).2.B CURRENT PLUS ACCOUNT

Current Plus Account offers you the freedom of unlimited transactions. There is no intercity transaction fee for this account. The minimum account opening balance requirement is BDT 25,000. There is no Annual Debit Card Fee or any other upfront fees. The account has a Half-Yearly Account Maintenance Fee of BDT 500 + VAT. However, the fee will be waived if the account maintains an average balance of Taka 25,000 or above for the last six months. The account comes with a 25 page first cheque book for free. Any person or organization that has a legal standing in Bangladesh can open a Current Plus Account. Closing of Current Plus Account is same as the Current Classic Account.

2. (I).2.C EZEE ACCOUNT

10

Ezee Account is a non-cheque, interest-bearing current account which offers interest rate of 4% p.a. The minimum account opening balance requirement is BDT 2,000. Any balance greater than zero will be eligible for interest. There is no Annual Account Maintenance Fee.
BANK ISL AMI P roduc ts : D epos it D ifferenc e in the BAN GL ADE SH LIMITE D VS BRAC BANK

Annual Debit Card Fee is BDT 600 + VAT. This is a non-cheque-book account.

2. (I).2.D. SALARY ACCOUNT

Organization minimum 10 employees and a payout of Tk. 1 lac per month and an average salary per employee of Tk. 10,000 per month can open a salary account. Salary Account is a non-cheque book individual account for employees of different Corporate Houses, offered interest rate is 4% p.a. Any balance greater than zero will be eligible for interest. There is no Annual Account Maintenance Fee in Salary Account. Annual Debit Card Fees is BDT 300 + VAT. Cheque Book facility is also available for this account.

2. (I).2.E. CAMPUS ACCOUNT

Campus Account is an interest-bearing current account exclusively offered for university students with an interest rate of 4% p.a. The minimum account opening balance requirement is BDT 2,000. Any balance greater than zero will be eligible for interest. There is no Annual Account Maintenance Fee. Annual Debit Card Fee is BDT 600 + VAT. Tax rate on the Interest, Salary Account statements on the Campus Account is same as the individuals Current Account. Customers will get cheque book and Visa debit card for the Campus Account. Campus Account in the name of the person, individuals or joint, will also get Visa debit card. SECTION 3: DEPOSIT PRODUCTS (TERM DEPOST)

11

2. (I).3.A. DPS( DEPOSIT PREMIUM SCHEME)

BRAC bank has a range of options for both installment size and maturity. The monthly installment can be as low as BDT 500 or any multiples of it i.e. BDT 1,000, BDT
BANK ISL AMI P roduc ts : D epos it D ifferenc e in the BAN GL ADE SH LIMITE D VS BRAC BANK

2,500, BDT 5,000 and so on. You are also free to choose the maturity of your DPS. You may select a period of 4/7/11 or 14 Years, depending on your convenience. Customers will get a Savings Account and On-Line Banking Facility and auto trans fer facility also.

2. (I).3.B. FIXED DEPOSIT GENERAL

Fixed Deposit General is a non-transactional account that gives interest and principal at maturity. Minimum amount required to open the General FD account is BDT 50,000. FD General can be opened for 1/3/6/12/24/36 months. Interest is paid on maturity, calculated on 360 days, as per the Interest Rate Matrix. 10% Government Tax shall apply to the interest amount.

2. (I).3.C. FLEXI DEPOSIT PREMIU M SCHEME (FLEXI DPS )

Flexi Deposit Premium Scheme is a non-transactional account that a customer uses for interest earning and savings purposes through monthly installment basis. Minimum amount required to open an FDPS account is BDT 500 and its multiples. FDPS can be opened for 1/2/3/4/5/6/7/8/9/10 years. Interest is accrued to the FDPS account on monthly basis. Interest (after adjusting 10% Government tax on the interest amount) will be paid at maturity date, as per the Interest Rate Matrix.

2. (I).3.D. INTEREST FIRST FIXED DEPOSIT (IFFD)

12

Interest First Fixed Deposit is a non-transactional account that a customer uses for interest earning in advance and savings purposes. The unique feature of this product is that interest is given upfront, at the time of opening the fixed deposit. Minimum amount required to open an IFFD account is BDT 100,000. IFFD can be opened for 3/6/12 months. Interest (after the adjustments of 10% Government tax on the interest amount) is immediately transferred to the link account, as per the Interest Rate Matrix.
BANK ISL AMI P roduc ts : D epos it D ifferenc e in the
Negotiable Instrument Yes (Cheque)

2.(II) ISLAMI BANK

SECTION 1: DEPOSIT PRODUCTS (SAVINGS ACCOUNTS)

Transaction Profit bearing Transactional No (more than one during banking hour)

Account types

Minimum balance

Tk.500 Current (Govt. tax is to be maintained in the A/C)

This account maintains under Al-Wadeeah principle of Islamic Shariah. Deposit from this account is invested along with other deposit but bank does not share profit with AlWadeeah current account holders as bank does not use that money for long time and has to always ready to fill customers withdrawal on demand.

Tk. 50 is charged half yearly if minimum balance is not maintained. Account closing charge is tk.50. Bank charges Tk.300+VAT for debit card and charge for online services. But within the city it does
not charge for online cash withdrew up to Tk.100, 000. SECTION 2: DEPOSIT PRODUCTS (CURRENT ACCOUNT)

13

BAN GL ADE SH

2. (II).1.A. AL-WADEEAH CURRENT ACCOUNT

LIMITE D

VS

BRAC

BANK

2. (II).2.A. MUDARABA SAVINGS ACCOUNT

Profit bearing Yes

Transaction

Account types Savings

Negotiable instrument NO

Profit rate for 2010(67% of investment

BANK ISL AMI P roduc ts : D epos it D ifferenc e in the BAN GL ADE SH LIMITE D VS BRAC BANK

income earned) 5 years 10 years 9.19% 7.80%

Nontransactional

Accounts under this Scheme may be opened for monthly deposits of Tk.500/-, Tk1,000/-Tk.2,000/-, Tk.3,000/-,Tk.4,000/- and Tk.5,000/- only. The deposit will be received on Mudaraba principle Account under the Mudaraba Muhor Savings Account shall only be opened in the name of wife. Instalment must be deposited within 6th to 25th of each month. If the 25th of any month is a Govt. holiday then instalment may be deposited on the preceding working day. Advance Instalments may be allowed to be deposited. SECTION 3: DEPOSIT PRODUCTS (TERM DEPOST)

2. (II).3.A. MUDARABA WAQF CASH DEPOSIT

Waqf to be done in perpetuity and the account shall be opened in the title to be decided by the Waquif. Deposits/Cash will be received as endowment on Mudaraba principle.

The Bank will manage the Waqf Fund on behalf of the Waquif. Waquif will have the right/opportunities to create Cash Waqf at a time or he/she may start with a minimum deposit of Tk. 50,000/- only and the subsequent deposit shall also be made in thousand or in multiple of thousand taka.

The Waquif or the beneficiary under this Scheme shall get the share of minimum 65% of the investment income

14

2. (II).3.B. MUDARABA HAJJ SAVINGS ACCOUNT

Profit bearing Yes Nontransactional Savings ( for 1 year to 25 year scheme) Transaction Account types Negotiable instrument NO Each month (based scheme year) on 11-20 years 9.60% Installment Profit rate for 2010(67% of investment income earned) 01-10 years 9.19%
BANK ISL AMI P roduc ts : D epos it D ifferenc e in the BAN GL ADE SH LIMITE D VS BRAC BANK

Account holder has to maintain a pass book where installment is recorded. Bank charges Tk.10 for getting a new pass book that lost.

If any depositor intends to perform Hajj before the maturity of deposit, then he can do so by depositing the balance amount fixed for the year along with his savings in the Mudaraba Hajj Savings Account.

2. (II).3.C. MUDARABA MUHOR SAVINGS DEPOSIT SCHEME

Accounts under this Scheme may be opened for monthly deposits of Tk.500/-, Tk1,000/-Tk.2,000/-, Tk.3,000/-,Tk.4,000/- and Tk.5,000/- only. The deposit will be received on Mudaraba principle

Account under the Mudaraba Muhor Savings Account shall only be opened in the name of wife. Installment must be deposited within 6th to 25th of each month. If the 25th of any month is a Govt. holiday then installment may be deposited on the preceding working day. Advance Installments may be allowed to be deposited.

2. (II).3.D.MUDARABA MONTHLY PROFIT DEPOSIT SCHEME

The Deposit shall be for a period of 5(five) years. The amount is refundable on maturity as per Mudaraba principle.

15

Under this Scheme Deposits shall be received on Mudaraba principles in the amounts of Tk.100,000/- and multiples thereof. Specially designed Monthly Mudaraba Profit Deposit Receipt will be issued there-against.

In case of premature withdrawal before 1(one) year, no profit shall be payable.

BANK ISL AMI P roduc ts : D epos it D ifferenc e in the BAN GL ADE SH LIMITE D VS BRAC BANK

In case of pre-mature withdrawal after 1(one) year profit shall be payable at the rate applicable for Mudaraba Savings Deposit. In such cases excess monthly profits so far paid shall be adjusted.

Monthly Mudaraba Profit Deposit receipts will be acceptable as security

2. (II).3.E.MUDARABA TERM DEPOSITS:

Profit bearing Transaction Account types Maturity Negotiable Instrument Profit rate for 2010(67% of investment income earned) 3 months No 6 months 12 months 24 months 36 months 6.22% 6.50% 6.80% 7.26% 8.21%

3 months, 6 months, 12 months, 24 Yes Non-Transactional Term deposit months and 36 months

Anyone can take this scheme for tk.1000 or tk. 100 multipliable any amount. Bank provides non-transferable documents for this term deposit. Profit is not paid in case of withdrew money within 3 months.

2. (II).3.F.MUDARABA SPECIAL NOTICE DEPOSITS (SND)

Profit bearing Transaction Account types Negotiable Instrument Minimum balance Notice for withdrew Profit rate for 2010 (67% of investment income earned)

16

yes

Transactional

Savings

Yes (cheque)

Tk.25,000

7 days before

For clients For Banks

3.89% 1.77%

Bank provides profit half-yearly or adjust yearly after calculating of profit and loss account.
BANK ISL AMI P roduc ts : D epos it D ifferenc e in the BAN GL ADE SH LIMITE D VS BRAC BANK

Bank does not grant profit whenever balance decline from Tk.25, 000. Customer has to give notice before 7 days for withdrew. And then, profit is given on daily basis. Customer can deposit money any day during banking hour.

Bank will charge half yearly at a specific rate whenever balance decline from minimum balance Tk.25, 000. And Tk. 20 will be charged for closing the account.

2. (II).3.G.MUDARABA SPECIAL SAVINGS (PENSION) ACCOUNT

Profit bearing Yes Nontransactional Transaction Account types savings Negotiable instrument No Monthly installment amount Tk.100Tk.500,Tk.1000, Tk1500,Tk.2500, Tk.5,000 5 years term 7.80% Profit rate for 2010(67% of investment income earned) 10 years term 9.19%

Installment must be deposited within 6th to 25th of each month. If 25th is govt. holiday deposit should be deposited on following working day. Installment can be deposited through cheque, advance and so on.

After the maturity account holder is given a lump sum amount of money or fixed amount monthly basis payment. In case of monthly basis, rest of the money is treated as mudaraba saving deposit.

CHAPTER-3

17

INTEREST RATE COMPARISON OF BRAC BANK AND ISLAMI BANK BANGLADESH LIMITED
Interest is generally provided by most of the banks in our country apart from the Banks those who
BANK ISL AMI P roduc ts : D epos it D ifferenc e in the BAN GL ADE SH LIMITE D VS BRAC BANK

follow Islamic Banking rule or Shariah. Thus, BRAC bank provides interest on the money kept in the different type of deposits. On the contrary, Islamic Bank Bangladesh Limited follows the Islamic Shariah. It is committed to conduct all banking and investment activities on the basis of interest-free profit-loss sharing system known as Mudaraba. Mudaraba is an ancient form of financing practised by the Arabs since long before the advent of Islam. In Islamic financing, a type of partnership in which one partner provides the capital while the other provides expertise and management. Each gets a prearranged percentage of the profits , but if confronted by loss the partner providing the capital also bears the losses instead of profit. The differences between the profit/loss sharing rate and the interest of these two banks can be summarized as follows:

SECTION 1: SAVINGS ACCOUNT

Final Rate of profit (67.00% of

18

Islami Bank Bangladesh limited

InvestmentIncome earned through deployment of Mudaraba Fund) for 2010

BRAC Bank
Triple

Interest Rate Monthly average balance

Below Tk. 50,000 From Tk. 50,000 to less than Tk. 5 lac From Tk. 5 lac to less than Tk. 25 lac Tk. 25 lac & above

Mudaraba Savings Account For Client For Banks

Rate
0% 4% 6% 8%
BANK ISL AMI P roduc ts : D epos it D ifferenc e BAN GL ADE SH in the LIMITE D VS BRAC BANK

5.30% 2.48%

Benefit Savings Account

N/A

Aporajita Account

Day end balance

Below Tk. 50,000 Tk. 50,000 to less than Tk. 5 lac Tk. 5 lac to less than Tk. 25 lac Tk. 25 lac to less than Tk. 25 crore Tk. 25 crore & above

Rate
0% 4% 6% 8%

8.5%

N/A

Savings Classic Account

Monthly minimum balance

Below Tk. 50,000 Tk. 50,000 to less than Tk. 5 lac Tk. 5 lac to less than Tk. 25 lac Tk. 25 lac to less than Tk. 25 crore Tk. 25 crore & above

Rate
0% 4% 6% 8%

8.5%

N/A

Future Star Account

Monthly Average Balance

Below Tk. 50,000 Tk. 50,000 to less than Tk. 1 lac Tk. 1 lac & above

Rate
4% 6% 8%

NB : Islamic Bank Bangladesh Limited only provides one type of Savings account whereas BRAC Bank provides 4 different types of savings account for facilitating different types of people for different savings need for the future.

SECTION 2: CURRENT ACCOUNT

Final Rate of profit (67.00% of investment

Interest Rate

19

Islami Bank Bangladesh limited

Income earned through deployment of Mudaraba Fund) for 2010

BRAC Bank

1. Al-Wadeeah Current Account No Profit / Loss bearing.

Current Classic Account

Non interest-bearing

ISL AMI P roduc ts : D epos it D ifferenc e in the

BANK

2.

N/A

Current Plus

Non Interest Bearing, but Back enjoys as Cash their

4.

N/A

Salary Account

4% interest on any deposit amount(*On daily balance)

5.

N/A

Campus Account

4%

NB : Islamic Bank Bangladesh Limited only provides one type of current account whereas BRAC Bank provides 5 different types of current account for facilitating the business and the organization.

SECTION 3: DEPOSIT PRODUCTS (TERM DEPOST)

20

BAN GL ADE SH

LIMITE D

3.

N/A

EZee Account

4%

VS

deposits grow.

BRAC

BANK

S\N

Islami Bank Bangladesh limited

Final profit earned

Rate (67.00%

of of

BRAC Bank

Interest Rate

investment Income through of deployment 2010

Mudaraba Fund) for

11 to 25 years term (Weightage of proportion

to investment fund 1.10)

9.19%

4 years- 8.5% 7 years- 9% 11 years-9.5%

ISL AMI P roduc ts : D epos it D ifferenc e in the

BANK BAN GL ADE SH LIMITE D VS BRAC BANK

Mudaraba Hajj Savings

DPS.

01 to 10 years Term (Weightage of proportion

to investment fund 1.08)

7.80%

14 years-9.75%

Mudaraba Savings (MMS) 10 Years

Muhor

Fixed Deposit

Term

9.19%

(Weightage of proportion
to investment fund 1.3)

05

Years

Term

7.80%

(Weightage of proportion
to investment fund 1.1)

21

Mudaraba Waqf Cash Deposit (Weightage of proportion

to investment fund 1.35) 9.60%

General. Flexi DPS

ISL AMI P roduc ts :

BANK

Mudaraba Savings (Pension): a. 10 Years term

Special Scheme

Interest First Fixed Deposit. 9.19%

D epos it

(Weightage of proportion to investment fund 1.30)

b.05 Years Term (Weightage of proportion

to investment fund 1.10)

7.80%

Mudaraba Monthly Profit Deposit Scheme (MMPDS): a) 05 Years Term 8.55% N\A

(Weightage of proportion
to investment fund 1.05)

b)

03

Years

Term

8.21%

(Weightage of proportion

22

D ifferenc e

BAN GL ADE SH

in

the

LIMITE D

VS

BRAC

BANK

to investment fund 1.02)

Mudaraba

Special

Notice Deposits (SND)

BANK ISL AMI P roduc ts : D epos it D ifferenc e BAN GL ADE SH in the LIMITE D VS BRAC BANK

a) For Clients (Weightage of

proportion to investment fund .55)

3.89% N\A

Mudaraba Term Deposits: a) 36 Months 8.21%

(Weightage of proportion
to investment fund 1.00)

b) 24 Months (Weightage
of proportion to investment fund .96)

7.26%

N\A

c) 12 Months (Weightage
of proportion to investment fund .94)

6.80%

d)06 Months (Weightage

of proportion to investment fund .92)

6.50%

e)03 Months (Weightage

of proportion to investment fund .88)

6.22%

23

CHAPTER-4

CONCLUSION

Today banking business becomes more competitive than before. Now customers are more aware and become smart to compare between the banks. And then choose the most convenient bank for them for dealing with their hard earned cash and business finance. Considering the fast moving and altering business era in the world each and every business organizations need to upgrade their ways of business to keep pace in the changing situation. It is very true that the most of the customers do not hesitate to term BRAC Bank better than other banks. Its profit is gradually increasing. The local banks have recently focused their attention to customer service, satisfaction regarding deposit-banking services. Moreover there are a good number of private banks that are into the competition. Therefore it is better for BRAC Bank not to let the situation be worst and should emphasize on serving customers effectively and efficiently to ensure better services. On the contrary, Islamic banks in Bangladesh have become, to an extent, successful in the field of savings and investment mobilization. As a result, the growth of Islamic banking in terms of branch expansion was evident not only in Islamic banking companies but also in Traditional banking companies. Islamic banking is growing well in terms of resource mobilization. These indicate that premises of Islamic banking system in Bangladesh have become stronger, although Islamic-banking system is working side by side with Traditional banking system. As such we can portray the example of the Islamic Bank Bangladesh Limited as they are offering a vast source of deposit schemes to attract more and more customers. The banking system of the country will forward towards Islamic banking system in future and it is really promising for other countries. As so, our countries banking sector is becoming more dominant and will boost exponentially when both the Islamic Banks and as well as the traditional banks will flourish in prosperity.
BANK ISL AMI P roduc ts : D epos it D ifferenc e in the BAN GL ADE SH LIMITE D VS BRAC BANK

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BIBLIOGRAPHY:

http://www.qfinance.com/dictionary/mudaraba
BANK ISL AMI P roduc ts : D epos it D ifferenc e in the

http://users.bart.nl/~abdul/article2.html

http://www.bracbank.com/eoi.php

http://www.bracbank.com/Schedule-of-Charges.php

http://www.islamibankbd.com/introduction.php

http://www.islamibankbd.com/profit_rate_2010.pdf

http://www.islamibankbd.com/awca.php

http://www.islamibankbd.com/mtdr.php

http://www.bracbank.com/company_profile.php

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BAN GL ADE SH

http://www.bracbank.com/schedule_of_charges/20110801Rate%20of%20Interest.pdf

LIMITE D

VS

BRAC

BANK