Competitive advantage By Bangladesh Commerce Bank Ltd

Internship Report
On
Investment policies and analysis of competitive advantage
By Bangladesh Commerce Bank Ltd

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Letter of Transmittal
October 03,2009
Al Mahmud
Senior Lecturer
Department of Business Administration

Subject:

Submission of the “Internship report”.

Dear Sir,
With due respect, I, Shib Shankar Gope student of BBA, 17th batch have great pleasure
to submit my “Internship Report” under your supervision. In preparing the report I
faced inconvenience relating to collection of pertinent information.
I respectfully acknowledge your guidance, leadership and helping for preparation of this
paper. It is worthwhile to mention that there might be some errors and mistakes in my
report due to limited knowledge. I am still at learning stage. So I respect that you will
pardon my unintentional mistakes in preparing this paper.

Sincerely Yours,

……….

Declaration
I’ m student of Business Administration Department (BBA program) major in Banking
and Finance of Dhaka International University. I hereby declare that the internship report
on “Investment policies and analysis of competitive advantage by Bangladesh
Commerce Bank Ltd.” which I have not submitted for any other degree before.

Department of Business Administration.


Preface
This report is the outcome of the internship program under the Bachelor of Business
Administration (BBA) course of the Department of Business Administration. During the
period of three months the objectives of the program was to theoretical aspects of the
practical life. Hence the internship program works as the link between the theory &
practical.

It is my pleasure to submit my internship titled “Investment policies and analysis of
competitive advantage by BCBL” during 15th May to 15th August. While preparing this
report, I have tried together as much information as possible & to gather all the
information pertain the report to enrich it. I believe that it was a fascinating experience to
work in the banking sector and it has enriched both my knowledge and experience.

This report is not free from limitations. There might have problems regarding luck and
limitations in some aspects.

………


Acknowledgement
I have much pleasure and kindness of the Almighty God, the supreme of the earth, for
giving me the ability to work hard successfully. Words will never be enough to express
how grateful I am but nevertheless I will try my best level to express my gratefulness
towards some people.
To this regard I would like to take the opportunity to express my gratitude to my faculty
supervisor, Al Mahmud , Senior lecturer, Department of Business Administration. His
suggestions and comments to make the report a good one was really a great source of
sprit for me. A single individual can achieve no noble objectives. I am indebted to a
number of persons for their kind advice, suggestions, directions & co-operations which
have, enable me to have an experience in the dynamic environment of the banking sectors
& ultimately to prepare this report.

I like to thank from the core of my heart to Md. Atiur Rahman, Br. Manager, 2nd
manager Abu Taher chawdhary & loan division, Mahmud Hassan
by Bangladesh Commerce Bank Ltd. for their co-operation and kind help. I would also
like to gratefully acknowledge co-operation of all the stuff members of zigatola Branch,
Bangladesh Commerce Bank Limited.
It would not have been possible for me to complete this study, successfully without their
help.


Executive Summary
This report is prepared as a partial requirement of BBA program of the Department of
Business Administration. It is prepared on performance evaluation through product and
service of Bangladesh Commerce Bank Limited. Operation provided By Bangladesh
Commerce Bank Ltd., zigatola Branch and guided by internship supervisor Al Mahmud ,
senior Lecturer of Department of Business Administration. The Performance Evaluation
of Bangladesh Commerce Bank Limited in this report, I am just trying to analyze how
they can perform in their banking system.

Financial soundness of any financial institution is the prime concern for its survival in the
competitive & changing business environment. This is the most important in case of the
banking institution. In this study “Investment policies and analysis of competitive
advantage by Bangladesh Commerce Bank Ltd.” has been described.


Abbreviation
A/C

Account

CCI and E

Chief controller of import & export

DD

Demand Draft

TT

Telegraphic Transfer

FC

Foreign Currency

FDR

Fixed Deposit Receipt

FER

Foreign Exchange Reserve

IMP

Import

IRC

Import Registration Certificate

ERC

Export Registration Certificate

L/C

Letter of credit

LIM

Loan Against Import Merchandise

LTR

Loan Against Trust Receipt

PAD

Payment Against Document

PO

Payment Order

STD

Short Term Deposit

TIN

Tax Identification number

VAT

Value added tax

SWIFT

Society for Worldwide Inter bank Financial
Telecommunication.

IBC

Inter Branch Clearing

OBC

Outside Bank Clearing

SOD

Security Over Draft

PC

Packing Credit

ABP

Accepted bills payable

EDF

Export Development Fund


Table of Content
Chapter

Contents

Page

Chapter – 1
Introduction

1

1.1. Introduction of the report

2

1.2. Objectives of the Study

2

1.3. Scope of the Study

3

1.4. Methodology

3

1.5. Limitations

4

Chapter - 2
Bangladesh
Commerce Bank
Limited

5

2.1. Historical Background of BCBL

8

2.2. Objectives and Targets

8

Chapter - 3
Product
&
Services of BCBL

9
3.1. Product & Services: Deposit
product

10

3.2. The rates of interest are given 10

below
3.3. Special Savings Scheme

10

3.4. The Attractive Savings Schemes of 10
BCBL
3.5. Product & Services: Loan & 21
advances
3.6. Product & Services: Services
3.7. Various services of BCBL Charges

24

3.8. Hierarchy of position in BCBL
Chapter - 4

24

26

Investment policy
27

4.1. Investment policy of the Bank with 28
Financial overview
4.2. Bank’s Performance at Glance

Chapter - 5

Product
Services
Banks

33

&
Rival

34

5.1. Deposit Products: Standard Bank 35
Ltd.
5.2. (DI+) Double Income Plus

36

5.3. LSDIP- Life Secured Double Income 37
Program

5.4. Revised Rate of Interest

38

5.5. Loan Products: Standard Bank Ltd. 38
5.6. Mood of Finance that we provide

40

5.7. Retail Products: Standard Bank 40
Ltd.
5.8. Price: Loan

44

5.9. Services: Standard Bank Ltd.

44

5.10. Deposit Products: Prime Bank 46
Ltd.
5.11. Loan Products: Prime Bank Ltd.

56

5.12. Consumer Credit Products

60

5.13. Hire Purchase

60

5.14. Advance against Share

61

5.15. Interest Rate: Prime Bank Limited 62
5.16. Services: Prime Bank Ltd.
Chapter – 6

Comparative
Scenario

62
64

With

6.1 Interest Rate

Competitive Bank

65

6.2 Product & Services

67

6.3 Opportunity should pick up by 67
BCBL

Chapter – 7

Future Prospect,
Recommendation

69

And
7.1 Future Prospect

70

Conclusion

7.2 Recommendation

70

7.3 Conclusion

71

7.4 Reference

72


Chapter-1

Introduction

1.1 Introduction of the report
The internship program is full credit subject of the BBA program of the Stamford University
Bangladesh, Which constructs a relation between the real life state of affairs and theoretical
concepts.


As a student of Business Administration of BBA program I prefer to prepare a report on banking
sector rather than other product and service. This internship report of my BBA program that
performed by me as a student of Stamford University Bangladesh, Department of Business
Administration. In a way I select the banking sector and my supervisor Md. Gulam Sharoar
Hossain offered me prepare the report on title as “Investment policies and analysis of
competitive advantage by Bangladesh Commerce Bank Ltd”.

1.2 Objectives of the report
Objectives
The objective of the analysis is to evaluate the procedure of “Investment policy and product &
Service” of Bank Asia Limited. There are also many objectives. The primary objective of this
report is to comply with the requirement of the Bangladesh Commerce Bank Limited. But the
objective behind this study is something broader. Objectives of study are summarized in the
following manner:
o

To evaluate product & Service procedures.

o

To evaluate the performance of the bank.

o

To apply theoretical knowledge in the practical field.

o

To make bridge between the theories and practical procedures of banking day-to-day
operations.

o

To gain practical knowledge by working in different desks of zigatola branch office of
Bangladesh Commerce Bank Ltd.

o

To observe the working environment in commercial banks.

o

To study existing banker-customer relationship.

o

To know the overall functioning of Bangladesh Commerce Bank Limited.

o

To have some practical exposures that will be helpful for my future career.

Specific Objectives
 To submit a report, for the fulfillment of my BBA program.


 Is to find out the “Investment policy and analysis of competitive advantage by
Bangladesh Commerce Bank Ltd.”

Broad Objectives
 Together comprehensive knowledge on total banking functions.
 To identify the factors contributing to the attractive & operative performance of the
local branch of the bank.
 To make a study of the facts in order to arrive at certain conclusion about product &
Service system.
 Critically analyze the functions and the operations of each level of the organization
of Bangladesh Commerce Bank Limited.

1.3. Scope of the report

Scope of this assignment was very confined concentrate only on the generalization banking
system of Bangladesh Commerce Bank Limited development of capital market of Bangladesh.
Besides this, for evaluating the performance I kept my thinking on general banking, loan and
advances, product & Service.

1.4. Methodology of the report


This report has been prepared on the basis of experience gathered during the period of
Internship from May 15, 2009 to August 15, 2009. For preparing this report, I have undergone
group discussion, collected data and sent some questionnaires to the selected Officers and
interviewed with some of them. I also studied different circulars and files of the bank.
I hope these criteria will be enough to find out different picture of product & Service procedure
and financial performance of the selected Bangladesh Commerce Bank Ltd.

Sources of Data
In order to make the report more meaningful and presentable, two sources of data and
information have been used widely.
The “Primary Sources” of Data are as follows:
 Face-to-face conversation with the respective officers and staffs of the Branch.
 Informal conversation with the clients.
 Practical work exposures from the different desks of the departments of the Branch
covered.
 Relevant file study as provided by the officers concerned.

The “Secondary Source” of Data and Information are:
 Annual Report of Bangladesh Commerce Bank Ltd.
 Various Books, articles, compilations etc. regarding general banking functions, and
product & Service.
 Different Procedure Manual published by Bank.

1.5. Limitation of the report


There are some limitations in every analysis. I have also faced some problems at the time
analyzing the performance of the bank. The limitations of my analysis are given below:
i.

Time is limited (3 month)

ii.

Insufficiency of information.

iii.

The bank personnel are very busy.

iv.

It was very difficult to collect the information from various personnel for their job
constraint.

v.

As some of the fields of banking are still not covered by our courses, there was difficulty
in understanding some activities.

vi.

Another limitation of this report is Bank’s policy of not disclosing some data and
information for obvious reason, which could very much useful.

vii.

I carried out such a study for the first time, so inexperience is one of the main
constraints or the study.


Capter-2

Bangladesh
Commerce Bank
Limited
2.1 Historical Background of BCBL


Bangladesh Commerce Bank Ltd incorporated in Bangladesh on 1 June 1998 as a
banking company, it started banking operations on 16 September 1999 with an
authorized and paid up capital of Tk 2,000 million and Tk 920 million
respectively. The share of the government of Bangladesh in the bank's paid up
capital is Tk 300 million while depositors of the former Bangladesh Commerce
and Investment Limited (BCIL) contributed Tk 520 million. The balance of Tk
100 million is to be subscribed by banks and financial institutions under guidance
and supervision by Bangladesh bank.

The former BCIL was set up on 27 January 1986 as a non-bank financial
institution. It continued its business till April 1992. Consequent upon its liquidity
crisis, Bangladesh Bank suspended its operations in April 1992. As a result, the
investors of the company suffered a lot and its employees became jobless. Both
the depositors and the jobless employees launched a movement for reopening the
company in some form or other and demanded return of their money and dues.
With a view to safeguarding the interest of the depositors, employees and the
general public, and to protecting the banking system itself from contagious effects
of bank failures, the government of Bangladesh established the Bangladesh
Commerce Bank on the ashes of the collapsed BCIL.

Subsequently, the government on 8 February 1998 constituted a 10-member board
of directors to organize and transform BCIL into BCBL and to administer the
affairs of the bank. The 24 branches of BCIL were reopened as full-fledged
branches of BCBL. The broad objective of the bank is to carry out all kinds of
commercial banking activities and to respond quickly to the changing demands
for modern banking products.


In its three months of operations in 1999 starting on 16 September and ending on
31 December, BCBL had mobilized deposits of Tk 83 million. To augment its
deposit collection further, BCBL introduced a number of deposit schemes suited
to the needs of all classes of people in society. These schemes include a) Monthly
Profit Based Deposit Scheme, b) Pension Saving Scheme, c) Interest Free Deposit
and Loan Scheme, d) Consumers' Credit Scheme, and e) Money Plantation
Against Saving Certificates. It has also offered competitive rates of interest on its
deposit holdings, which varied between 7.75% and 12% since the inception of its
operations through May 2000. Total deposits stood at Tk 1,294.2 million on 31
December 2000, when its gross loans and advances amounted to Tk 1,311
million.

The first priority of the bank in 1999 and 2000 was the recovery of the past loans
of the BCIL. It has managed to recover Tk 523.3 million in cash and Tk 1,788
million by adjustment against past liabilities. The bank is overburdened with the
liabilities and the non-performing classified loans of BCIL. The bank also
suffered losses in the years 1999 and 2000 and was not able to maintain necessary
provisions for classified loans. Investment of the bank has increased from Tk 20
million in 1999 to Tk 95 million in 2000, mainly in government treasury bills.
Because of the huge stuck up loans inherited from the BCIL, the bank's creditdeposit ratio stood at 101.30%.

Total assets of BCBL, including the Tk 1,423.99 million of former BCIL stood at
Tk 3,763.7 million on 31 December 2000. The bank's off-balance-sheet reserve
was only Tk 95.8 million, a figure which has contributed little to the increase of
its asset-mix. In 2000, BCBL maintained liquid assets of Tk 1,052.6, a sum hardly
sufficient to meet its accumulated short-term/current obligations. On the other
hand, statutory liquid assets of the bank were 15.08% in 2000, which is below the

20% SLR requirement envisaged by Bangladesh Bank. Because BCBL had
absorbed huge amount of liabilities and non-performing assets of BCIL, it was not
possible for the bank to make net profits during the short period of its existence in
the new set-up.

The bank is managed by a 9-member board of directors appointed by the
government. A total of 590 officers and other staff work in the head office and the
24 branches of the bank. It has inherited a training institute from BCIL. This
institute is being reorganized to provide training to its employees in modern
banking services.

2.2 Objectives and Targets

1. Offering maximum services to the clients and shareholders as per rules.
2. Providing services by diversification to the door step of people in the economic
sector.
3. Ensuring maximum utilization of professional manpower by developing skill &
creativeness.
4. Creating savings attitude among various classes of people.
5. Increasing investment for keeping the market economy operative.
6. Earning confidence of all concerned by easing foreign trade and international
transaction.
7. Assessment of consumer need and provide short term and long term finance on the
basis of real need.
8. Proper maintenance of Bank’s resources through appropriate investment and active
participation of various welfare programs of the country.
9. Activate capital market by more participation in the capital market.
10. Involves customers with modern banking through proper usage of modern
information technology.


11. Providing best services to the customers to establishing firm discipline in Bank
management and building long term relation.
12. Achievement of economic growth through various socio-economic activities.
13. Building image of the Bank home and abroad. Upgrading socio-economic aspects of
Bangladesh financing Agro-based Prakalpa.


Capter-3

Product & Services of
BCBL

3.1 Product & Services: Deposit Product

A savings account at BCBL will provide you with healthy returns on your savings

at the same time as you help support projects bringing lasting benefits to
communities and the environment. Our range of personal savings accounts has
been designed to offer something for everyone. So whether you want to invest a
lump sum, put by a little every month or you simply want to move your savings to
a bank with a uniquely ethical approach, there is a BCBL savings account to suit
your needs.

3.2 The rates of interest are given below
STD
Savings FDR
Account Account One
Two
month months
5.00%
6.00%
9.00
9.50%
%

Three
months
13.00
%

Six
months
12.50
%

One
year
13.00%

3.3 Special Savings Scheme
Under the special savings scheme against regular deposit of particular amount per
month a substantial amount after 5/8/10/12/15 & 20 years will be given. This scheme is
popularly known as Deposit Pension Scheme

3.4 The Attractive Savings Schemes of BCBL are
3.4.1 Lakhopati Scheme (LDS)
3.4.2 Millionaire Scheme (MIDS)
3.4.3 Kotipati Scheme (KDS)
3.4.4 Marriage Scheme (MDS)
3.4.5 Sikha Sanchaya Scheme (ESS)
3.4.6 Double Benefit (DGDS)
3.4.7 Triple Benefit (TGDS)

3.4.1 Lakhopati Scheme (LDS)
1. Under this Scheme the amount of Deposit is Tk. 1,260/- & Tk. 460/- gradually for
period 5 (Five) & 10 (Ten) years.
2. Depending on maturity the return will be as followsLakhopati Scheme (LDS)
Duration
Monthly Deposit
5 (Five) Years
1260/- Tk
10 (Ten) Years
460/- Tk

On Maturity
1,00,000/- Taka
1,00,000/- Taka

3. If Government Tax is imposed on earned income, depositors account will be
debited to pay such Taxes.
4. Under this Scheme client could open any of above account. But after opening
account the amount & maturity period could be changed.
5. The depositor must maintain a saving account with any of the brunches of BCBL.
By paying a certain fee bank will automatically deposit the monthly deposit
amount from the general saving account upon a special instruction of client.
6. Any Bangladeshi above 18 years of age can open this Account. A minor can also
open this account by his/her own name. In this case his/her legal guardian will
operate the account.
7. Client would receive the return after one month of depositing the last monthly
payment.
8. Monthly payment have to deposited within 10 (Ten) of every calendar month
(incase of holyday, next working day will be effective). Any number of advance
“Deposit” will be accepted.
9. If the depositor wants to encash this ‘Deposit Receipt” prior to maturity, profit
will be paid at normal saving rate. But profit will be given if such encashment is
made before completion of 6 (Six) month.
10. If client fail to deposit within the prescribed time, he/she have to pay 5% of
deposit amount or Tk. 25/- whichever is greater with the next deposit.

11. Bank contains the right to close the account upon a failure to deposit three (3)
consecutive “Deposit”. If a client fail to deposit three (3) consecutive “Monthly
Deposit”, the account will be treated as ESS account and upon completion of 6
(Six) month, profit will be paid at normal saving rate.
12. After completion of 2 (Two) years, credit facility upto 80% may be availed
against the deposit. In that case the client will be required to pay interest on the
loan amount as determined by the Bank. This requires minimum Tk. 10,000/deposit on the account.
13. In the event of death of the depositor prior to maturity of principal with profit will
be disbursed his/her nominee(s). in absence of nominee(s), lawful heir(s) may
receive the above on submission of succession certificate.
14. No monthly transaction report will be provided on this account. But if needed a
charge of Tk. 10/- would be charged for the monthly transaction report.
16. Money laundering prevention act, shall be exercise as per rules of BB.
17. BCBL reserves the right to change/enhance the above terms & condition
including revision of rate of interest.
18. Photograph of Nominee duly attested by the applicant is to be enclosed herewith.

3.4.2 Millionaire Scheme (MIDS)
1. Under this Scheme the amount of Deposit is Tk. 4600/- & Tk. 2170/- gradually
for period 10 (Ten) years & 15 (Fifteen) Years.
2. Depending on maturity the return will be as followsMillionaire Scheme (MIDS)
Duration
Monthly Deposit
10 (Ten) Years
4,600/- Tk
15 (Fifteen) Years
2,170/- Tk

On Maturity
10,00,000/- Taka
10,00,000/- Taka


payment.


3.4.3 Kotipati Scheme (KDS)
1. Under this Scheme the amount of Deposit is Tk. 21,950/- & Tk. 11,100/gradually for period 15 (Fifteen) Years & 20 (Twenty) Years.
2. Depending on maturity the return will be as followsKotipati Scheme (KDS)
Duration
Monthly Deposit
15 (Fifteen) Years
21,950/- Tk
20 (Twenty) Years
11,100/- Tk

On Maturity
1,00,00,000/- Taka
1,00,00,000/- Taka

payment.

loan amount as determined by the Bank. This requires minimum Tk. 2,50,000/deposit on the account.

3.4.4 Sikha Sanchaya Scheme (ESS)
1. Under this Scheme the amount of Deposit is Tk. 500/- for period 8 (Eight) & 12

(Twelve) years.
2. Depending on maturity the return will be as follows-

Sikha Sanchaya Scheme (ESS)
Duration
Monthly Deposit
8 (Eight) Years
500/- Tk
12 (Twelve) Years
500/- Tk

On Maturity
76,500/- Taka
1,48,800/- Taka

payment.


3.4.5 Marriage Scheme (MDS)
1. Under this Scheme the amount of Deposit is Tk. 1,000/- for period 12 (Twelve)
years & 18 (Eighteen) years.
2. Depending on maturity the return will be as followsMarriage Scheme (MDS)
Duration
Monthly Deposit
15 (Fifteen) Years
1,000/- Tk
20 (Twenty) Years
1,000/- Tk

On Maturity
2,97,600/- Taka
6,36,000/- Taka


payment.
12. After completion of 4 (Four) years, credit facility upto 80% may be availed


3.4.6 Double Benefit (TGDS)
1. Minimum Tk. 5,000/- or any multiple of this amount may be deposited to open
this DGDS A/C
2. This deposit shall be accepted only for the period of 6 (Six) years. The depositor
must maintain a saving or current account with any of the brunches of BCBL.
3. “Deposit Receipt” will be issued to the customer while receiving deposit.
7. Credit facility upto 80% may be availed against the deposit. In that case the client
will be required to pay interest on the loan amount as determined by the Bank.
8. If the “Deposit Receipt” is lost prevailing terms/condition in force fro issuing a
duplicate receipt for term deposit will be applicable for issuing a “Duplicate
Receipt”

3.4.7 Triple Benefit (TGDS)
1. Minimum Tk. 5,000/- or any multiple of this amount may be deposited to open this
TGDS A/C
2. This deposit shall be accepted only for the period of 9 (Nine) years 9 (Nine)
months. The depositor must maintain a saving or current account with any of the
brunches of BCBL.
3. “Deposit Receipt” will be issued to the customer while receiving deposit.
5. If the depositor wants to encash this ‘Deposit Receipt” prior to maturity, profit will
be paid at normal saving rate. But profit will be given if such encashment is made
before completion of 6 (Six) month.
7. Credit facility upto 80% may be availed against the deposit. In that case the client
will be required to pay interest on the loan amount as determined by the Bank.
8. If the “Deposit Receipt” is lost prevailing terms/condition in force fro issuing a
duplicate receipt for term deposit will be applicable for issuing a “Duplicate
Receipt”
11. BCBL reserves the right to change/enhance the above terms & condition including
revision of rate of interest.

3.5 Product & Services: Loan & advances

Like Deposit Scheme,

BANGLADESH COMMERCE BANK LIMITED have formulated the

following Loan Schemes
1. Financing of Trade
2. Term Loan
3. Financing of small and medium Industries
4. Agriculture Loan
5. House Building Loan
6. Financing of Transport
7. Financing of Non-Banking Financial Institute
8. Syndicate/Club Loan
9. Loan against FDR/Loan against Special Scheme
10. Financing of Export-Import
11. Stuff Loan
12. Bill Purchase/Loan against Share
13. CCS
14. Special Credit Scheme for Service holder

15. Credit Scheme for Women entrepreneurs
16. Prime Customer (5.00 crore or higher )

3.5.1 Financing of small and medium Industries
The main thrust of financing is given on small and medium Industries. This is the

priority sector of our Bank.

3.5.2 Financing of Trade
Trade Finance includes CC (Cash Credit), SOD (Secured Overdraft) FO (Financial
Obligation) and SOD (Secured Overdraft) RE (Real Estate) working capital. This will help
the local trades and Businessmen to expand their trade and business unhindered.
.

3.5.3 Financing of Import & Export
All necessary Financing for Import & Export are done by opening L/C, buying
documents providing, LIM, PAD, PC and LTR facilities for smooth functioning of
foreign Trade.
3.5.4 Micro Credit and Micro Enterprise Scheme
For poverty alleviation micro credit is provided to poor people without security for their
self-sustenance to rehabilitate them in the society

3.5.5 Credit Scheme for Women entrepreneurs
For developing Women entrepreneurship in the country this type of credit is
extended to unemployed and skilled women, through which they can transform
their micro credit in to small enterprises
3.5.6 Consumers Credit Scheme


Domestic useable items i.e. Computer, Photocopier, Furniture, Washing Machine, Air
Cooler, Refrigerator, Sewing Machine, Car, Pressure Cooker etc are financed for
comfortable and modern living of the people of limited source of income.

3.5.7 Special Credit Scheme for Service holder
Under this scheme service holders of govt. bank or autonomous bodies are
provided with 6 month's basic salary as loan realizable in 18 equal installments.
Professionals are also covered enter this special credit scheme

The Interest Rate of above Loans & Advances criteria are given below-

SL

LOANS & ADVANCES

INTEREST RATE
(Applicable From 01.07.2008)

1

Financing of Trade

a

CC (Hypo)

16.00%

b

CC (Pladge)

16.00%

c

SOD (RE)

16.50%

d

LTR/LIM

17.00%

2

Term Loan

a

Big & Medium Industry

14.75%

b

Small Industry (SME)

18.00%

3

Financing of small and medium Industries

a

Big & Medium Industry

14.50%

b

Small Industry (SME)

18.00%

4

Agriculture Loan

12.00%


5

House Building Loan

a

Residential

16.50%

b

Commercial

16.50%

6

Financing of Transport

16.50%

7

Financing of Non-Banking Financial Institute

16.00%

8

Syndicate/Clab Loan

15.50%

9

Loan against FDR/Loan against Special Scheme

03.00% more

10

Financing of Export-Import

07.00% (Fixed)

11

Stuff Loan

a

Vehicle

Bank Rate

b

Against PF

09.50%

c

House Building

08.00%

12

Bill Purchase/Loan against Share

16.50%

13

CCS

17.00%

14

Special Credit Scheme for Service holder

17.00%

15

Credit Scheme for Women entrepreneurs

16.00%

16

Prime Customer (5.00 crore or higher )

16.00%


3.6 Product & Services: Services
BCBL provides specialized services to its clients3.6.1 Capital Market Operation
The Bank operates capital market operation which will include Portfolio Management,
Investors Account etc.
3.6.2 Counter for Payment of Bills
Dedicated counters are available at BCBL's branches to receive the payment of various
utility (DESA, Titas, BTCL) bills.
3.6.3 Other Services

•

Remit funds from one place to another through DD, TT and MT etc.

•

Conduct all kinds of foreign exchange business including issuance of

L/C,

Travelers’ Cheque etc
•

Collect Cheques, Bills, Dividends, Interest on Securities and issue Pay Orders, etc.

•

Act as referee for customers.

3.7 Various services of BCBL: Charges
Revised Schedule of ChargesSL

Type of Services

Service Charge+15.00% VAT (where
applicable)

1

Remittance -Inland

0.15%, Min. Tk.50/-

(DD/TT/MT issuance)

At actual
At actual, Min. Tk.20/-

2

Issuance of Payment Order

Up to Tk.1.00 Tha Tk.20/Up to Tk.1.00 lac Tk.30/-


Up to Tk.5.00 lac Tk.50/Above Tk.5.00 lac Tk.100/3

Issuance
of
instrument

4

Cancelation Of DD/TT/PO

5

Cancellation
DD/TT/MT/PO

6

duplicate At actual Min. Tk.50/At actual Min. Tk.50/of Out of Clearing area, 0.15%, MaxTk.1000/-, Min-Tk.100/If Dishonored, Tk.50/At Actual conveyance

Cancellation of Out of 0.15%, Max-Tk.1000/-, Min-Tk.100/Station Cheque/Document
If Dishonored, Tk.50/Bill
At Actual conveyance
7

Standing Instructions

At actual Min. Tk.50/Every Instruction Tk.50/- @ monthly
applicable

8

Inland Bill/Cheaque Cross

0.15%, Max-Tk.1000/-, Min-Tk.50/Tk.20/At actual Min. Tk.50/Interest @ OT Rate

9

Guarantee (Internal)

First 3 months @ 0.75%
100% margin Tk.1000/-

10

Locker

Small Per Year Tk.2000/- (Without
Insurance Premium)
Medium Per Year Tk.2000/- (Without
Insurance Premium)
Large Per Year Tk.2000/- (Without
Insurance Premium)

11

Incidental Charge

Personal Tk.300/Commercial Tk.500/-


12

Account Close

Personal Tk.100/Commercial Tk.200/-

13

A/C Statement

First Time Free, Next every Tk.100/-

14

Loan Processing Fee (SME)

1.00% on approved Loan

15

Loan Appraisal Fee

0.25% on approved Loan
Tk.400000/- Renewal Tk.200000/-

16

Certificate
Issue

17

Service Charge

Yearly Tk.100/-

18

Cheaque Book Issue

Tk.1.00 per leaf and Tk.2.50 per leaf for
new MICR

19

Cheaque Bounce/Return

Tk.200/-

Max

Issue/Solvency Tk.200/-

3.8 Hierarchy of position in BCBL


Figure i: Organization Structure


Chapter-4
Investment policy

4.1 Investment policy of the Bank with Financial overview

4.1 Deposit


At the end of December 2008 the deposit of the Bank was Tk. 678.69. The growth of
deposit is 19.43% compared to last year. The Bank has given great stress on
procurement of low cost fund including cost free fund for bringing down the average
cost of fund.

Depos it
800
700
T aka in C rore

600
500
400
300
200
100
0
2001

2002

2003 Ye a r 2005

2006

2008

Figure iiii: Deposit, 2001-2008

4.2 Loans & Advances

The Loans & advances of the Bank registered an impressive growth during the year
2008. The total loans & advances amounting to Tk. 578.60 Crore. The advance portfolio
of the Bank is well diversified and covers funding to a wide spectrum of business and
industries including agro-based and agro processing, ship scraping, steel& engineering,
paper & paper products chemical, construction, real-estate and loans under consumers,
credit schemes, various trading business, service holders loan and women
entrepreneurs of the country.


L oans & A dvanc es

578.69

57
2001

170
2002

291.1

307.29

2003

2005

381.54

2006

2008

Ye a r

Figure iiii: Investment, 2001-2008

4.3 International trade

The international trade constitutes a major business activity conducted by the Bank. The
important business of the Bank indicated a significant increase in the year. The import
business during the year 2003 reached to Tk. 200.00 crores against Tk. 100.00 crores of
the previous year which reflected a growth of 100%. The import business made by the
Bank resulted in steady increase of revenues for the bank in spite of the downward
trend in international trade. The export business handled by the Bank during the year
2003 was Tk. 210.00 crores compared to Tk. 85 crores in the previous year. The slow
growth in export business is due to debacle in geopolitical arena, surrounding economic
instability.


e
o
r
C
n
i
k
a
T

Import Business
250
200
150
100
50
0

200
100

2002

2003
Year

Figure iv: Import Business, 2002-2003

Export Business
250
210

200
150
100

o
l
M
n
i
k
a
T

85

50
0
2002

2003
Year

Figure v: Export Business, 2002-2003

4.4 Advance Deposit Ratio

If we observe the Ratio on Investment and Deposit, it appears that the MFI uses most of
there deposits to investment which refers that the MFI mobilize its resources for the
best reproduction.


Advance Deposit Ratio
90
80
70
60

)
%
(

50
40
30

71

2003

61

73

2005

82

20
10
0
2002

2006

Year

Figure vi: Advance Deposit Ratio, 2002-2006

In 2002 the ratio was 61.00%. It rises to 82.00% in 2006.

4.5 Operating Result and Profit
The Bank earned an operating profit of Tk. 7.04 crore during the year before making any
provisions. The operating profit of the Bank during the year 2002 was Tk. 3.15 crore and
this the Bank attained a growth of 124% in respect of operating profit. Due to having a
cumulative loss of Tk. 5.43 crore no provision for income tax has been provided. After
keeping a provision for loans & advances amounting to Tk. 2.23 crores the rest amount
has been adjusted with cumulative loss which reduced the cumulative loss to Tk. 1.58
crores.


Performance Acceleration
8
6
4

e
o
r
C
n
i
k
a
T

2
0
2001

2002
2003
2008
Year
Operating Profit

Figure vvii: Performance Acceleration, 2001-2003, and 2008

4.6 Guarantee Business
The Bank issued guarantees amounting to Tk. 50.00 crores during the year compared to
Tk. 20.00 crores in the previous year registering a growth of 250%. The guarantees were
issued in favour of different Govt. authorities, Autonomous bodies, Corporations,
Multinational Companies etc. against proper securities on behalf of the clients of the
Bank.
4.7 Investment
The Investment portfolio of the Bank during the year 2003 was Tk. 14.00 crore against
Tk. 6.15 crore in the previous year registering a growth of 133%. The portfolio of
investment included Govt. Treasury Bills, Prize Bonds, Share in Public Limited Companies
etc. The Bank has always given emphasis on investment of fund in high yield areas and
maintains Statutory Liquidity Requirement (SLR) as fixed by Bangladesh Bank.


4.2 Bank’s Performance at Glance

BCBL at a Glance
Figure in Crore
Sl. No.

Particulars

2001

2002

2003

2008

01.

Authorized Capital

200.00

200.00

200.00

200.00

02.

Paid-up Capital

82.00

692.00

92.00

105.79

03.

Loans & Advances

57.00

170.00

291.10

578.60

04.

Deposits

176.00

280.00

409.39

678.69

05.

Investment

1.00

1.02

0.90

-

08.

Operating Profit

0.22

3.15

7.04

3.25

09.

Loan as a % of total Deposit

71.00%

61.00%

32.00%

-

11.

Number of Employees

384

375

436

433

12.

Number of Branches

24

25

25

25

Table i: BCBL's Performance, 2001-2003, 2008


Capter-5

Product & Services
Rival Banks

5.1 Deposit Products: Standard Bank Ltd.

5.1.1 SRDP – SBL Regular Deposit Program

SRDP is a special savings plan that allows you to save and a monthly basis and gets a
handsome amount at maturity. SRDP Account gives you the convenience of saving
regularly in time with your monthly income stream. So, if you want to create a big
savings to fulfill your cherished dream SRDP in the right solution.
-To open a SRDP Account all you need is to be over 18 years of age and a Bangladeshi
Citizen.
-You can open a SRDP Account within 10 days of the month by filling up a prescribed
account opening form at any Branch of Standard Bank Limited.
-You need to open a SRDP Account for 3 (three) or 5 (five) years, i.e. 36 and 60 equal
monthly deposits respectively.
-Under the SRDP you can choose between a minimum monthly deposit amount of
Tk.300.00 and a maximum amount of Tk.1000.00
Monthly deposit amount and amount receivable after 3/5 years
Installment Amount

Matured Value
3 years

5 Years

Tk.

300.00

12,550.00

22,800.00

Tk.

500.00

20,900.00

38,000.000

Tk.

1,000.00

41,800.00

76,000.000

Tk.

2,000.00

83,600.00

1,52,000.00

Tk.

2,500.00

1,04,500.00

1,90,000.00

Tk.

5,000.00

2,09,000.00

3,80,000.00

Tk.

10,000.00

4,18,000.00

7,60,000.00


5.1.2 Flexibilities



Easy procedure to open SRDP



Upto 80% loan facility against SRDP deposit.

5.1.3 SRIP – SBL Regular Income Program

SBL Regular Income Program is an income program, which helps you to earn a monthly
fixed amount on your deposits at SBL for a period of 3 years.If you are over 18 years of
age, a Bangladeshi citizen and an account holder of SBL, you are eligible to open SBL
Regular Income Program with our any branch and any time you want. It’s that easy.

Deposit Amount

Monthly Interest Payable

50,000.00

450.00

100,000.00

900.00

2,00,000.00

1800.00

3,00,000.00

2700.00

4,00,000.00 & above

3600.00 & above




Easy procedure to open SRIP



Automatic profit transfer to linked account



Upto 80% loan facility against SRIP deposit.

5.2 (DI+) Double Income Plus

Double Income Plus is a 06 (six) years Program. Your deposit doubled plus in 06
(six) Months. Minimum initial deposit for the program is tk from 10,000/- (Ten
Thousand) to Tk.25,00,000/- (twenty five lac).

5.2.1 Features of the Product are

To start with the Double Income Plus (DI +) deposit program one customer has to put Tk
from 10,000/- (Ten Thousand) to Tk.25,00,000/- (twenty five lac) after maturity the
deposited Double Plus. If the accounts/deposits are closed/encashed after one year of
its opening, interest shall be allowed on the deposit at prevailing FDR interest rate.

5.2.2 Features & Regulations of the Program

-Deposit range is from 10,000/- (Ten Thousand) to Tk.25, 00,000/- (twenty five lac).

-Term of Deposit 06 (six) years 06.

-Double Plus amount will be paid after completion of the 06 (six) years term.


-Income Tax may be deducted as imposed by the government on the interest amount at
the time of maturity/payment.

5.2.3 Special attractions

80% loan is allowed upon the deposit

balance instantly. Payment Matrix [(for amount

of tk from 10,000/- (Ten Thousand) to Tk.25, 00,000/- (twenty five lac).]

At Maturity is shown below
Tenure

Deposit

Value at Maturity

6 years

10,000/-

20,200.00

20,000/-

40,400.00

50,000/-

1,01,000.00

1,00,000/-

2,02,000.00

6 months
6 years
6 months
6 years
6 months
6 years
6 months

5.3 LSDIP- Life Secured Double Income Program

We know Savings increase Deposit and Deposit creates the opportunity of Investment.
The Investment patronizes the establishment of Industry and presents wealthy economy
of the country. So, the importance of Savings is vital for the country. Moreover, in


personal life savings ensure our future. Out of all uncertainty death is the universal
message of truth for all of us. Focusing on that SBL introduced Insurance Covered & life
secured a special deposit program for fruitful utilization of its client’s hard earned
savings.

5.3.1 Features & Regulations of the Program

-Deposit range is from Tk.1, 00,000.00 (One Lac) to Tk.25, 00,000.00 (Twenty Five Lac).

-Term of Deposit 07 years.

-Double amount will be paid after completion of the 7 years term.

-Saving rate will be allowed for any pre-mature encashment.

-In case of death of the depositor nominee will get double amount of the deposit
balance. But it will effect after 12 (twelve) months from the date of account opening.

5.3.2 Special terms of the scheme

-Depositor's age will be maximum 50 years.


-40 years above depositors will provide physical fitness certificate from the competent
medical authority in case of the deposit amount of Tk.2, 00,000.00 (Two lac) above.

-In all cases depositors will provide a declaration about health fitness in a prescribed
form

-Income Tax may be deducted as imposed by the government on the interest amount at
the time of maturity/payment.

5.3.3 Special attractions

-In case of death of the depositor nominee will get double amount of the up to date
deposit balance.
-80% loan is allowed upon the deposit balance instantly.

5.4 Revised Rate of Interest

Savings Deposit 7.00% & STD Deposit 6.00%


Deposit Products

FDR for below FDR for Tk. 50
Tk. 50 Lac
Lac & above

FDR ( 1 Month but less than 3 Months)

9.00%

9.00%

FDR ( 3 Month but less than 6 Months)

11.50%

13.50%

FDR ( 6 Month but less than 1 Year)

12.00%

13.00%

FDR (1 Year and above)

12.50%

13.50%

5.5 Loan Products: Standard Bank Ltd.

Standard Bank Limited, occupied the leading position in 3rd generation private
commercial bank, to explore a new horizon in innovative modern Banking creating an
automated computerized environment providing one stop service and prepare itself to
face the new challenges of globalization of 21st century.

Bank provides assistance for local and international trade using every mood of finance
to the traders, exporters, manufactures, individual etc.

The international trade encompasses a substantial portion of business conducted by
the Bank. During the year 2004, the bank has contributed in the national economy after


successfully handling of foreign exchange transactions viz. Import, Export (Both local
and foreign).

In the wake of recession of business, the government is currently pursuing an
accommodative monetary policy through a number of measures such as reduction in
Bank rate, reduction in interest rate in government bonds and reduction on SLR
requirement, simultaneously adoption of floating exchange rate and open market
operation fueling incentives towards private investment with the aim of creating more
capital avenues thereby generating more income to add to the GDP of the economy. In
the juncture, it is very tough for a Bank to remain on track of competition to achieve
desired goal in international trade. In order to achieve our cherished goal of achieving
consumer satisfaction we extend our hand in the following sector:


Trade Finance



Small & Medium Business



House Building loan



Consumer Credit



Transport Loan



International Trade



Project Financing



Lease Financing



Financing for BMRE



Agricultural loan



Special finance for non-traditional item



Syndication Finance

5.6 Mood of Finance that we provide



Secured Overdraft: For Work Order, General purpose etc.



Cash Credit (Hypothecation)



Cash Credit (Pledge)



Letter of Credit



Back to Back L/C



Loan against Trust Receipt



Loan against Import Merchandise



Bank Guarantee

5.7 Retail Products: Standard Bank Ltd.
Consumer financing products are
∇ Salary loan scheme
∇ Car/auto vehicles loan
∇ House renovation loan
∇ Household durables loan
∇ Self employed professional loan
∇ Land purchase loan
∇ Marriage loan

5.7.1 Salary loan scheme

This scheme will cover all salaried executives/officers having confirmed / permanent job
in any of the following organizations:
- Government Organizations


- Semi Government & autonomous bodies
- Banks, well-established and reputed insurance companies and any other

alike

financial institutions.
- Multinational companies, Large NGOs, Aid Agencies, UN Bodies.
- Large Private organization having corporate structure.
- Teachers of reputed Universities, Colleges & Schools.
- Hospitals, Pathology Labs, Air lines, 5 Star Hotel & Restaurants.
- Length of service: Minimum 2 (two) years for type A,B,C
- Minimum Monthly Salary: TK. 20,000 (Twenty Thousand) Gross.
- Loan limit: ranges up to 2.00 Lac but not exceeding 3 (three) times of gross salary.
- All other conditions as stated in serial 1 to 13 to be followed.

5.7.2 Auto loan (car, auto-rickshaw, micro-bus, taxi, pick-up van

Features



Loan amount ranges from Tk. 1.00 Lac to 10.00 Lac



Debt equity ratio 60:40.( Bank contribution 60% & Client 40%)



Repayment tenure12, 24,36,48 or60 months.



Loan amount excludes insurance, Vat, registration etc.



Option of pre-paying after a minimum of 6 months from loan disbursement.



The car /auto will be registered in joint name where in Standard Bank
Will be the first party. Customer will bear the insurance charges.



All other conditions as stated in serial 1 to 13 to be followed.

5.7.3 Self employed professional loan

Ltd.

 Self employed professional Loan is a loan facility offered by the Retail Banking Division

to facilitate the registered Doctors, Dentists, Pathologists, Engineers, Architects
,Scientists, Chartered accountants who are salaried as well as self employed.
 Minimum of 3 years continuos service experience.(Both salaried & self employed)
 Age-30 years to 57 years.
 Monthly Income- Tk. 15,000/- gross.( Minimum).
 Maximum Limit TK. 5.00 Lac.
 Maximum loan upto 10 times of gross salary or net income of self-employed.
 All other conditions as stated in serial 1 to 13 to be followed.

5.7.4 Marriage loan
Marriage Loan is a personal loan facility offered to executives/officers intends to
marry to incur his/her marriage expenditure or their sons and daughters.


Limit: Maximum Tk. 2.00 lac.

 Age: 25 years to 57 years.
 All other conditions as stated in serial 1 to 13 to be followed.
No marriage loan will be provided against 2 nd Marry.

5.7.5 Household durables loan

 Household durable loan is a personal loan offered to salaried /self employed persons to

make their wishes true for purchasing computer, Refrigerator, A.C., T.V., Motorcycle,
Washing Machine etc.
 All other conditions & eligibility as stated in serial 1 to 13 to be followed.
 Limit: Minimum Tk. 20000/- Maximum Tk. 1.00 Lac
 Product quotation to be obtained.


5.7.6 House renovation loan

 House renovation Loan scheme is a Personal Loan facility offered to salaried/self-

employed persons to furnish & renovate their house.
 Limit: Maximum: Tk. 4.00 lac. Debt equity ratio 50:50
 Applicant must be owner of the land & building.
 The house must be situated at Cities.
 Age Limit: 30 years to 60 years.
 All other conditions as stated in serial 1 to 13 to be followed.

5.7.7 Land purchase loan
- Land purchase loan scheme is a personal loan facility offered to salaried / self
employed persons to purchase lands in the city areas.
- Limit maximum TK. 10.00 Lac
- Applicant must be purchaser of the land.
- The land will be mortgaged to the Bank as per registration Act.
- Debt equity Ratio 50:50
- All other conditions as stated in serial 1 to 13 to be followed.

5.7.8 Lease Finance
Standard Bank Limited offered Lease Finance facilities to its valued client’s with
a view to facilitate client’s to acquire equipments and machineries without
investing any fund in spite of paying fixed lease rentals. Fixed lease rentals can be
tailored both in terms of amount and timing to the profit and cash flow position of


the Lease Holder. At the end of the lease contract the lease assets back to the
client with a nominal and depreciated value.

5.8 Price: Loan
Types of Loan ( Effective Form 03 November 2007)
Agriculture/Agro based/ Agro processing

1

9.00%

Term loan on large & Medium Scale
Industry

2

15.00%

Term loan on small Industry

3

15.00%

Working
Working Capital On large & 4(a)
Capital On Medium Scale Industry
Industry
Working Capital On small 4(b)
Industry

15.00%

Export

5

7.00%

Commercial Loan

6

15.00%

Housing Loan

7

15.00%

Consumer Credit

8

16.00%

Credit Card

9

Not Applicable

Loan to NBFIs

10

16.00%

Others

11

15.00%


15.00%

5.9 Services: Standard Bank Ltd.

Standard Bank provide different services
1. Remittance Service
2. Locker Service
3. Utility Bills collection Services
a. T&T Bill Collection
b. PDB Electricity Bill
c. DESCO Bill Collection
d. Rural Electricity Board (REB) Bill Collection
(Revised Schedule of Charges w.e.f. 17.12.2008)

Sl.
No.

Type of Services

Nature of Charges

Revised Rate of Charges

Service Charge / Incidental Charge
1

Current Account
A/C Closing Charge

2

Savings Account
A/C Closing Charge

Tk.100/-



3

@Tk.300/- half yearly on each A/C
irrespective of balance
(for rural branches Tk.150/- half yearly)
except Employees A/C

STD Account

A/C Closing Charge
A/C Closing Charge
4

Tk.100/Tk. 300/- half yearly on each A/C
irrespective of balance (for Metropolitan
Area)

Scheme Account

(for Rural Branches Tk.200/- half yearly)
except Employees A/c
5

Standing Instruction

Charge
Small Size

6

Tk.150/-

Tk.200/- half yearly on each A/C
irrespective of balance (for Metropolitan
Area)
(for Rural Branches Tk.150/- half yearly)
except Employees A/C

Locker & Save Custody
Medium Size
Large Size

Charge

Tk.200/- per case
Free (For each monthly/quarterly), Tk.50/other than above

Mail Charge

8

Tk.3500/- per locker

Charge

Issuance of Solvency Certificate

Tk.3500/- P.A.

Security Money (Refundable)
7

Tk.2000/- P.A.

Tk.50/- per Statement within Bangladesh
and outside Bangladesh Tk.50/- plus at
actual postage.

Supply of Original Statement of
Account

9

Issuance of Cheque Book

10

Issuance of Foreign Currency
Charge
Balance Certificate

11

Local Collection of Cheques

Charge

Commission

Tk.1.00 per leaf for CD/STD and Tk.0.50
per leaf for SB Account (except Employees
A/C)

Tk.100/- per certificate
Free

(where there is clearing house)


Local Collection of Cheques
(where there is no clearing
house)

At actual
Charges

Bounce cheque drawn on us
Charges
(cash, clearing or transfer)

Min. Tk.50/- per case

Tk.100/- per instance

12
Local currency cheque returned
Charges
unpaid sent on collection


Commission
Up to Tk.25000/Tk. 25001/- to 100000/13

0.20%, Min. Tk.100/0.20%, Min. Tk.100/-

Collection
of
outstation Tk.100001/- to 500000/cheques/bills
(clean
/
documentary)
Over Tk.500000/-

0.10%, Min. Tk.200/0.05%, Min Tk.500/- Max.2500/-

Postage (Registered)


Telex/Telegram Charges


Telephone
Commission
Remittance -Inland

Additional Charges for TT (Postage)

At actual

(DD/TT/MT issuance)

Telex/SWIFT


Telephone/Fax

Tk.50/-

Charge of Cancellation

Tk.100/-

Postage / Courier
14

0.15%, Min. Tk.50/-

Tk.50/-

Cancellation of DD/TT/MT/PO

Tk.50/-, up to Tk.1000/Telex/SWIFT/Fax
Tk.100/- above Tk.1000/-

Issuance of duplicate instrument Charge for issuance

Tk.100/- Plus actual Telex or Postage
Charges incurred there against
Up to Tk.1.00 lac Tk.25/-

Issuance of Payment Order

Charge for issuance

Up to Tk.5.00 lac Tk.60/Above Tk.5.00 lac Tk.100/-


15

Duplicate issue of FDR

Charge
Tk.200/-

16

Issuance of Bangladesh Bank
Cheque at the request of theCharge
client

Up to Tk.25000/- @Tk.0.25%
Min. Tk.100/Above Tk.25000/- to 1.00 lac @0.25%
Min. Tk.200/-

Commission

Above Tk. 1.00 lac to Tk.5.00 lac @0.25%
Min. Tk.300/Above Tk. 5.00 lac to10.00 lac @0.10%
Min. Tk.500/-

17

Above Tk.10.00 lac @0.10%

Purchase of Cheques and Inland
Bills

Min. Tk.1000/Postage (Registered)

At actual Min. Tk.25/-

Telegram


Telex / Fax


Telephone


Interest

Interest to be charged as per lending rate
from date of purchase up to the date of
realization of proceeds and handling
charges Tk.500/Half
Yearly

18

yearly

-

Free
Free

Balance Confirmation Certificate Charge
For more then two times in a year,
Tk.200/- for issuance of each Certificate

19

Certificate for BO A/c

Charge

Tk.100/-

5.10 Deposit Products: Prime Bank Ltd.

Bank is the largest mobilizer of surplus domestic savings. For poverty alleviation,
we need self employment, for self-employment we need investment and for
investment we need savings. In the other words, savings help capital formations
and the capital formations help investments in the country. The investment in its
turn helps industrialization leading towards creation of wealth of the country. And
the wealth finally takes the country on road to progress and prosperity. As such,
savings is considered the very basis of prosperity of the country. The more the
growth of savings, the more will be the prosperity of the nation.
The savings rate in Bangladesh is one of the lowest in the world. In order to
improve the savings rate, Financial Institutions responsible for mobilization of
savings should offer attractive Savings Schemes so that the marginal propensity to
save increases. The savings do not, of course, depend only on the quantum of
income but largely depend on the habit of savings of the people.
Interest rate of Savings Deposit Account is 6.00% for the year 2008.
Prime Bank have formulated following Deposit Scheme
1. Contributory Savings Scheme
2. Monthly Benefit Deposit Scheme s
3. Education Savings Scheme
4. Fixed Deposit Scheme
5. Short Term Deposit
6. Lakhopati Deposit Scheme
7. Double Benefit Deposit Scheme
8. Foreign Currency Account
9. Resident Foreign Currency Deposit Account
10. Non-resident Foreign Currency Deposit Account
11. Non-resident Taka Account


12. Non-resident Investors Taka Account
13. House Building Deposit Scheme
14. Prime Millionaire Scheme

5.10.1 Rate of Fixed Deposit
This type of deposit should be kept for a fixed term or period. Prime Bank
Limited deals with the following terms deposit.

Sl.
No.
1
2

Particulars

Interest
Rate

1 (One) month

7.50 %

3 (Three) months
i)
ii)

Tk. 1.00 crore & above but below 13.00 %
Tk. 5.00 crore

iii)
3

Below Tk. 1.00 crore

11.50 %

Tk. 5.00 crore & above

13.00 %

6 (Six) months
i)
ii)

Tk. 5.00 crore

iii)
4


11.50 %


13.00 %

1 (One) year & above
i)



12.00 %

ii)

Tk. 5.00 crore

iii)
13.00 %
N.B. For Senior Citizenship Scheme 0.50% higher rate may be offered.

Particulars

Interest Rate

Below Tk. 1 crore

5.00%

Tk. 1 crore and above

6.00%

5.10.2 Short Term Deposit

• A short term deposit (STD) account is a running account with amounts being paid into and

drawn out of the account continuously.
• These accounts are called Demand Deposits or Demand Liabilities since the banker is

under obligation to pay the money in such deposits on demand
• These accounts are generally opened by Business Organization, Public Institution, and

Corporate Bodies.
• An STD account may be opened by an individual person.
• It is an interest bearing deposit. Interest is calculated on daily basis as per Banks

Prescribed Rate and is credited to account on half yearly basis.
Current interest rate on STD account is presented in the following table:

N.B. For the Senior Citizenship Scheme 0.50% higher rate may be offered.


5.10.3 Monthly Benefit Deposit Scheme
-This is a Deposit Scheme where the depositor gets monthly benefit out of his
deposit.
-The scheme is designed for the benefit of the persons who intend to meet the
monthly budget of their families from the income out of their deposit.
-Investment of fund of Trusts and Foundations, which award monthly
scholarships/ stipends to students, etc.
The salient features of the Scheme are given below
1. Deposit of Tk. 25,000.00 (Taka twenty five thousand) and multiples thereof, but
maximum Tk. 25, 00,000/- (Taka twenty-five lac) shall be acceptable under the
Scheme.
2. The Deposit shall be for a period of 5 (Five) years. The Principal amount is
refundable on maturity.
3. Profit shall be paid on monthly basis @ Tk. 1,000.00 per Tk. 1, 00,000.00.
4. Payment of monthly profit shall start from the subsequent month after a clear
minimum gap of 30 days from date of deposit.
5. In case of death of a depositor, the account shall cease to be operative and the
amount deposited so far shall be paid to the nominee, and in the absence of
nominee, to the legal heirs of deceased as per rules in force.
6. Normally, the deposit will not be encashable before 5 (Five) years. But if any
depositor intends to withdraw his deposit before maturity due to certain
unavoidable reasons, he would be allowed to do so in the following manner:
a) No benefit including interest shall be allowed for pre-mature encashment within
one year.
b) If the accounts / deposits are closed/ encashed after one year of its opening,
benefit shall be allowed on the deposit at existing normal Savings Deposit rate.


c) If the amount of monthly profit already paid exceeds the amount payable at
normal Savings rate, the difference shall be realized from the principal deposit
amount, if and when necessary.
7. Separate Application Form specially designed for the purpose shall be obtained
duly filled in and signed by the depositor. In addition to this, the depositor must
have a separate Savings Bank Account with the branch wherein the benefit on the
amount so deposited shall be credited every month.
8. A specially designed Receipt shall be issued for the deposit under the Scheme in
the same manner as issued in case of FDR.
9. The Receipt will not be transferable.
10. Advance against lien on such Receipt can be allowed up to 80% of the deposit
bearing normal rate of interest prevalent at the time on Overdraft/ Loan.
11. During the period of such Overdraft/ Loan, the monthly benefit shall be credited
to the concerned Overdraft/Loan.
12. Payment will be made after deduction of taxes as fixed by the Govt. from time to
time.
13. In case the instrument is lost, the procedure for issuance of a duplicate will be the
same as applicable in case of loss of FDR.
N.B. Senior Citizens will get 0.50% higher rate of interest as permissible for
all other deposits of our Bank. Monthly benefit shall be Tk. 1042/- per Tk. 1,
00,000/- per month for Senior Citizens.

5.10.4 Double Benefit Deposit Scheme

1. The Scheme shall be implemented through all the branches of Prime Bank Limited.
2. Deposit of Tk. 25,000/- (Taka twenty five thousand) and multiplies thereof but
maximum limit of Tk. 25, 00,000/- (Taka twenty five lac) at a time will be acceptable
under the scheme.
3. The instrument shall be issued for 06 (six) years term.
4. At maturity after 06 (six) years double the amount of deposit will be paid to the
depositor.


5. Photograph of Nominee, duly attested by the depositor, shall be obtained at the time of
opening the account.
6. Normally no withdrawal will be allowed before maturity. But if any depositor intends to
withdraw his deposit before maturity, the following rules will applyNo benefit including interest/profit shall be allowed for pre-



mature encashment within one year.
If the accounts / deposits are closed / encashed after one year



of its opening, benefit shall be allowed on the deposit at normal Savings
Deposit rate.
7. The instrument will be acceptable as collateral security against any investment subject
to registering lien with the issuing branch.
8. In case of death of a depositor, the amount of instrument will be paid to the nominee,
to the legal heirs of the depositor on production of succession certificate.
9. In case of instrument is lost the procedure for the issuance of a duplicate receipt will be
the same as applicable in case of loss of FDR.
10. Under the scheme depositor can get free insurance facility.
11. Insurance coverage is only applicable to personal accident and serious illness related
insurance policy.
12. Depositor can take loan against his/her deposit under this scheme.
At present no income tax will be deducted from the interest earned. But in future for
any change in the government policy Bank reserves the right to deduct income tax.

5.10.5 Education Savings Scheme

The educational expenses particularly the expenses for higher education are sharply
increasing day by day in our country. Sometimes, the children are deprived of getting
the desired level of education because of the inability of the parents to meet their
educational expenses. But the parents would not feel any difficulty to defray such
expenses if a proper financial planning is made much ahead of time.


Moreover, we are receiving demands from the Islamic minded people of our country for
an attractive Savings Scheme on the basis of Islamic Sariah so as to encourage them to
save in Islamic way for education of their children.
With this end in view, Prime Bank Limited has introduced a Savings Scheme entitled
“Education Savings Scheme” in accordance with the principles of Islamic Sariah i.e., on
the basis of profit and loss sharing. The scheme provides a unique opportunity to the
parents to make a future provision for the educational expenses of their children when
they enter into Schools, Colleges and Universities out of the benefit of a small amount of
savings with the Bank at an opportune moment.

The salient features of the Scheme are given below1. The Scheme shall be implemented through all our branches, though it is specially
designed for Islamic Banking branches.
2. Deposit of Tk. 50,000/- and multiples thereof but maximum limit of Tk. 5,
00,000/- at a time will be acceptable under the Scheme.
3. A specially designed Receipt shall be issued for the deposit under the Scheme in
the same manner as issued in case of FDR. Branches shall use the ESS receipts
that used for existing scheme.
4. The instrument shall be issued for a period of 5 years term.
5. On maturity a lump sum amount of Tk. 85,382/- shall be payable or education
allowance @ Tk. 1,854/- per month per Tk. 50,000/- shall be payable on the basis
of deposit amount for next 5 years starting from the completion of the term as per
following table. Income Tax @10% on interest may be deducted at source at the
time of payment of lump sum amount

Initial Deposit (Taka)

Lump
sum
payable
at
(Taka)

amount Amount of Education
maturity allowance per month
(Taka)

50,000/-

85,382/-

1,854/-

1,00,000/-

1,70,763/-

3,705/-


1,50,000/-

2,56,145/-

5,558/-

2,00,000/-

3,41,526/-

7,410/-

2,50,000/-

4,26,908/-

9,263/-

3,00,000/-

4,69,704/-

11,115/-

3,50,000/-

5,47,988/-

12,968/-

4,00,000/-

6,26,272/-

14,820/-

4,50,000/-

7,04,556/-

16,673/-

5,00,000/-

7,82,840/-

18,525/-

6. To avail the monthly allowances the depositor is required to surrender the savings
instrument to the Bank duly discharged with a written instruction to the Bank to pay the
installments to his ward on monthly installment basis as stipulated in the scheme.
7. Separate Application form specially designed for the purpose shall be obtained duly
filled in and signed by the depositor.
8. Photograph of the Nominee and Ultimate Beneficiary, if any, duly attested by the
depositor, shall be obtained at the time of opening the account.
9. Normally no withdrawal will be allowed before maturity. But if any depositor intends to
withdraw his/her deposit before maturity, the following rules will be applicable:
a) No benefit including interest shall be allowed for pre-mature encashment within one
year.
b) If the accounts/deposits are closed/encashed after one year of its opening, benefit shall
be allowed on the deposit at normal Savings Deposit rate.
10. The instrument will be acceptable as collateral security against any investment subject
to registering lien with the issuing Branch.
11. In case of death of the depositor, the amount of instrument will be paid to the nominee
or, in the absence of a nominee, to the legal heirs of the depositor on production of
succession certificate.


12. But if the nominee after the demise of the depositor intends to continue the deposit to
enjoy the monthly educational allowance for five years, as admissible under the rules of
the scheme, the receipt should be surrendered to the Bank on maturity duly discharged
by the nominee and duly authenticated by the legal guardian.

5.10.6 Lakhopati Deposit Scheme
Monthly Installment size, tenure and terminal value of the scheme will be
as follows:
Monthly Installment
Tenure
Size (Taka)

Amount to be paid after
maturity (Taka)

250/-

15 years

1,00,000/-

500/-

10 years

1,00,000/-

1,285/-

5 years

1,00,000/-

2,400/-

3 years

1,00,000/-

1. At present no income tax will be deducted from the interest earned. But in future
for any change in the government policy Bank reserves the right to deduct income
tax.
2. The depositor will have the option to choose any installment size and period at the
time of opening of the account and will not be allowed to change the size of
installment afterwards.
3. Account in the name of minors can be opened too under the Scheme as per
standard procedure for minor accounts.
4. A person can open more than one account for any size of installment in any
branch of the Bank.
5. The specified amount on maturity at any slab shall be paid after one month from
the date of deposit of the final installment.


6. The installment shall be payable by the 8th day (in case of holiday the next
working day) of every month. Advance payment of any number of installment is
acceptable.
7. Normally no withdrawal shall be allowed before maturity, if any depositor intends
to withdraw his/her savings due to certain unavoidable reasons before 3 years, 5
years, 10 years and 15 years, he/she will not be allowed any benefit if the
premature encashment takes place before completion of 1 year. But the depositor
shall be allowed interest on the prevailing Savings Deposit rate after completion
of 1 year from the date of opening of the account.
8. When a depositor fails to deposit any installment, he/she will have to pay a fine
5% of the overdue amount payable at the time of depositing the next installment
or Tk. 20/- whichever is higher.
9. If a depositor fails to pay 3 (three) consecutive installments he will have to pay
5% fine of the overdue installments to regularize the account. If he fails to pay
more than 3 (Three) installments he will cease to remain under the purview of the
scheme and the deposit will be treated as Savings Bank deposit and interest will
be paid on the deposited amount at prevailing SB A/C rate subject to completion
of 1 (one) year of its opening.
10. Loan may be allowed up to 80% of the deposited amount against lien on the same
where the deposited amount shall be at least Tk. 50,000/- and the interest rate of
the loan shall be as per prevailing commercial lending rate of the Bank.
11. In case of death of a depositor, the account will cease to be operative and the
amount deposited so far shall be paid to the nominee, and in absence of nominee,
to the legal heirs of deceased as per rules in force.
12. The Bank at its discretion may allow inter branch transfer of the A/C under the
Scheme.
13. The clients are encouraged to give standing instructions to the Bank to deposit the
monthly installments, debiting their CD/SB accounts maintained with the
concerned Branch. In that case, no charge will be realized for such service.


14. Normally no statement of the account will be served to the depositor, in case of
need of any depositor, charge @ Tk. 10/- per year / per statement shall be realized
as cost of paper. This charge may be changed from time to time.

5.10.7 Prime Millionaire Scheme

The salient features of the Scheme are given below1.

Monthly installment shall be Tk. 12,465.00 /Tk. 7,890.00 /Tk. 4,570.00 for
the tenor of 5/7/10 years respectively

2.

Terminal amount on maturity shall be Tk. 10.00 lac.

Size of monthly Investment
deposit (in Taka)
Tenor (in Year)

After the investment Tenor Pension
size
of
the terminal value of the installment according
Scheme (in Taka)
to the years Invested
(in Taka )

12,465/-

5

1,000,000/-

21,748/-

7,890/-

7

1,000,000/-

17,137/-

4,570/-

10

1,000,000/-

13,786/-

3.

Income Tax on interest amount shall be as per Government rule on taxation and the
Bank reserves the right to deduct Income Tax.

4.

The depositor will have the option to choose any installment size at the time of opening
of the A/C. and will not be allowed to change the size of installment afterwards.

5.

A person can open more than one account.

6.

The installment shall be payable by the 8th day (in case of holiday the next working day)
of every month. Advance payment of any number of installments is acceptable.

7.

Normally no withdrawal shall be allowed before maturity, If any depositor intends to
withdraw his/her deposit due to certain unavoidable reasons before maturity (Min after
one year) interest on the prevailing Savings Deposit rate may be allowed.


8.

When a depositor fails to deposit any installment, he/she will have to pay a fine @5% of
the overdue amount payable at the time of depositing the next installment or maximum
Tk. 500/- .

9.

When a depositor fails to pay 3 (Three) consecutive installment at any point of time
before 2 years term, the customer will cease to remain within the purview of the
scheme and scheme will be treated as a Savings Bank deposit and interest will be paid
on the deposited amount at prevailing SB A/C rate subject to completion of 1 (One) year
of its opening.

10. In case of death of a depositor, the A/C. will cease to be operative and the amount
deposited so far shall be paid to the nominee, and in the absence of nominee, to the
legal heirs of deceased as per rules in force.
11. The Bank at its discretion may allow inter branch transfer of the A/C under the Scheme.
12. The clients are encouraged to give standing instructions to the Bank to deposit the
monthly installments, debiting their CD/SB accounts maintained with the concerned
Branch. In that case, no charge will be realized for such service.
13. Normally no statement of the account will be served to the depositor. Incase of need of
any depositor, charge @Tk.10/- per year / per statement shall be realized as cost of
paper.

5.11 Loan Products: Prime Bank Ltd.
Like Deposit Scheme,

PRIMA BANK have formulated the following Loan

Schemes
∇ General Loan Scheme
∇ Lease Finance
∇ House Building / Apartment Loan Scheme
∇ Small and Medium Enterprise (SME)
∇ Consumer Credit Scheme
∇ Hire Purchase

∇ Advance against Share

5.11.1 General Loan Scheme

Depending on the various nature of financing, all the lending activities have been
brought under the following General Loan

•

Short term Loan

•

Medium term Loan

•

Long term Loan

The loans are allowed to individual/firm/industries for a specific purpose but for a
definite period and generally repayable by installments fall under this head. This type of
lending are mainly allowed to accommodate financing under the categories (i) Large &
Medium Scale Industry and (ii) Small & Cottage Industry. Very often term financing for
(1) Agriculture (ii) Others.

5.11.2 Lease Finance


Lease financing is one of the most convenient long term sources of acquiring capital
machinery and equipment. It is a very popular scheme whereby a client is given the
opportunity to have an exclusive right to use an asset, usually for an agreed period of
time, against payment of rent. Of late, the lease finance has become very popular in
almost all the countries of the world. An obvious advantage of the lease is to use an
asset without having to buy it. The lessee is obligated to make lease payments until the
expiration of the lease agreement, which corresponds to the useful life of the asset. In a
capital scarce economy like ours, Lease Financing is suitable for firms to acquire Capital
Machinery, Equipments, Medical Instruments, and Automobiles etc. And thereby
employ their own resources more advantageously in some other investments. Lease
financing also helps a firm to reap significant economic benefit through tax saving and
by reducing the risk of the equipments becoming obsolete due to the technological
advancement.

5.11.3House Building / Apartment Loan Scheme
Loans allowed to individual/enterprises for construction of house (residential or
commercial) fall under this type of advance. The amount is repayable by monthly
installment within a specified period. Such advances are known as Loan (HBLGEN).
Loans allowed to our Bank Employees for purchase /construction of house shall
be headed Staff Loan (HBL-STAFF).

5.11.4 Small & Medium Enterprise (SME)


“Small and Medium Enterprise Credit Scheme” has been formulated as follows. It
may also be mentioned that USAID has approved our bank to receive their
guarantee facility to lend money to Small and Medium business Houses. 50% of
losses, if any, be paid by USAID
5.11.4.1 Small Enterprise

Small Enterprise refers to those enterprises: -where goods are produced, recycled, repaired or traded in traditional way;
-where total bank investment is limited to Tk.250,000;
-where 10 or less workers are engaged on wages or commission basis.

5.11.4.2 Medium Enterprise

Medium Enterprise refers to those enterprises:-Where goods are produced, recycled, repaired or traded applying some capital
machinery;
-Where 20 or less people are engaged on wages or commission basis;

-Where total bank investment does not exceed Tk.75, 00,000.
-The net fixed assets (excluding land and buildings) of borrowers may not exceed Tk.
equivalent of US $250,000.

5.11.4.3 Loan Ceiling


1.
2.

For small enterprise
: Maximum Tk.2, 50,000/For medium enterprise : Maximum Tk.75, 00,000/-

No loan proposal for less than Tk.1, 00,000/- be entertained.

Purpose

Working capital;

Delivery Van / Transport for business
purpose;

Capital machinery;

Refurbishing office/Business premises.

5.11.4.5 Mode of Finance
1.
Cash Credit (Hypo/Pledge)
2.

Hire purchase/ Lease Finance

3.

Term Loan.

5.11.5 Consumer Credit Scheme

In order to provide financial assistance to the limited income group for raising their
standard of living by acquiring domestic durables like Refrigerator, T.V., Washing
machine, Furniture, Computer, Motor Car, etc., we have introduced a Scheme to
improve the quality of life particularly of the fixed income earner of the society and this
scheme is known as Consumer Credit Scheme.

5.11.6 Eligibility for Credit


The persons having confirmed/permanent job in any one of the following organizations
and age between 20 to 50 years are eligible for availing of Credit facilities under the
Scheme.
 Government Organization
 Semi-Government and Autonomous Bodies
 Banks, Insurances Companies or any other Financial Institutions
 Armed Forces, B.D.R, Police and Ansar
 Private Organizations having corporate structure
 Teachers of Universities, Colleges and Schools
Besides the above, Professionals like Doctors, Engineers, Architects, Lawyers,
Journalists, Chartered Accountants, Self Employed Business Executives are also eligible
for enjoying credit facilities under this scheme subject to the providing of Bank
Guarantee or Insurance Guarantee for the amount of Credit.

5.12 Consumer Credit Products
o

Household Durable Loan

o

Car Loan

o

Doctors Loan

o

Advance Against Salary

o

Any Purpose Loan

o

Education Loan

o

Travel Loan

o

Marriage Loan

o

CNG Conversion Loan

o

Hospitalization Loan


5.13 Hire Purchase
Hire Purchase is a type of installment credit under which the Hire Purchase agrees
to take the goods on hire at a stated rental, which is inclusive of the repayment of
Principal as well as interest for adjustment of the loan within a specified period.

5.14 Advance against Share

In order to contribute to the development of the Capital Market of the country Prime
Bank Limited extends credit facilities against pledge of Shares to the individuals as well
as to the Member of DSE & CSE.

5.16 Services: Prime Bank Ltd.

5.16.1 Master Card

Prime Bank Limited obtained Principal Membership of Master-Card International in the
month of May 1999. Within a period of 6 months, the bank successfully launched
Master Card-Credit Card which created a new dimension in its customer service and
consumer financing.
The Special feature of the Prime Bank Master Card is that its bears the card holder’s
photo on the card, which is the first of its kind in Bangladesh and adds security against
misuse. Prime Bank Limited issues 4 types of cards. These are Gold Local & International
and Silver Local & International. Local cards can be used in Bangladesh only.

5.16.2 One Stop Utility Services Scheme

Like any other country of the world, the people living in the urban areas of our country
lead a very busy life. Time is very valuable to them. Despite this, they are to waste their
valuable time at the counter of different Banks and other Institutions for payment of
their monthly bills of different utility services like Electricity, Telephone, Water, Gas etc.
They, as such, face enormous difficulties for payment of their monthly bills in time. Such
inconveniences of the urban people can be removed by making an arrangement
to collect all the bills of various utility services at One Point.
Scope of Services
With this end in view, Prime Bank Limited has introduced a Scheme entitled “ONE STOP
UTILITY SERVICES SCHEME”. The scheme is designed to provide all the required services
to the customer in making payment of their following bills on their behalf from the
counter of the Bank:
•

To pay Electricity Bills

•

Cash deposit in his/her account at any branch of the Bank irrespective of location.

•

Cash deposit in other's account at any branch of the Bank irrespective of location.

•

Transfer of money from his/her account with any branch of the Bank.

Any amount can be deposited or transferred under Prime Line. In the system, however,
at present there is a limit for cash withdrawal through bearer or by account holder
himself.

5.16.3 Online Branch Banking Service
ONLINE BRANCH BANKING SERVICE is designed to serve its valued clients. Under this
system, you shall be able to do the following type of transactions:


Cash withdrawal from your account at any branch of the Bank.



Deposit in your account at any Branch of the Bank.



Transfer of money from your account to any other account with any

Branch of the Bank.


Capter-6
Comparative
Scenario
With
Competitive Bank


6.1 Interest Rate

A comparative picture drawn on interest rate on various deposit & loan product-

Figure 8: Interest Rate for SB A/C


Figure 9: Interest Rate for FDR A/C (1)

Figure 10: Interest Rate for FDR A/C (2)


Figure 11: Interest on various Credits

From the above Graph it has been observed that Banks are offering a very close rate
regarding Deposit & Loans.

6.2 Product & Services

In case of Deposit product/scheme BCBL are not diversifying their product/special
scheme to the client who are belong to various social ground/culture/group etc. The
competitive banks innovating product to attract the new customers as well as to satisfy


existing client. And there a huge opportunity for BCBL to launch new featured product
to attract more customer.
In our country most of the Bank providing Consumer Credit, and the approximate
recovery rate is more or less 98% from which a Bank can earn a huge return. But at
present BCBL not operating in that section and need to take that point in a great
consideration.
Additionally on the ground of services area BCBL are on back footed comparing to other
bank. BCBL providing only general services. But today customer needs are growing
enormously. So BCBL needs to expand its service area like Credit Card and ATM Card
and online banking operations for clients, Merchant Banking etc.

BCBL are on Back foot compare to other Bank on following factor-

1.

Retail banking

2.

Introduce special corporate scheme

3.

ATM

4.

Credit card and debit card system

5.

Online Banking

6.

Merchant banking

6.3 Opportunity should pick up by BCBL

 Opportunity in retail banking lies in the fact that the country’s increased
population is gradually learning to adopt consumer finance. The bulk of our
population is middle class. Different types of retail lending products have great
appeal to this class. So a wide variety of retail lending products has a very large
and easily pregnable market.
 A large number of private banks operating into the market in the recent time. In this


competitive environment BCBL must expand its product line to enhance its sustainable
competitive advantage. In that product line, they can introduce the ATM to compete
with the local and the foreign bank. They can introduce credit card and debit card
system for their potential customer.
 In order to reduce the business risk, BCBL has to expand their business portfolio. The
management can consider options of starting merchant banking or diversify into leasing
and insurance sector.
 The activity in the secondary financial market has direct impact on the primary financial
market. Banks operate in the primary financial market. Investment in the secondary
market governs the national economic activity. Activity in the national economy controls
the business of the bank.
 In addition of those things, BCBL can introduce special corporate scheme for the
corporate customer or officer who have an income level higher from the service holder.
At the same time, they can introduce scheme or loan for various service holders. And
the scheme should be separate according to the professions, such as engineers, lawyers,
doctors etc.


Capter-7

Future Prospect,
Recommendation
And
Conclusion

7.1 Future Prospect

Amid many challenges, adverse economic conditions and market scenario during the
year, the Bank maintained its growth trend through the indicators like, profitability,
deposit mobilization, asset creation and profitability, deposit mobilization, asset
creation and network expansion. Basing on convincing reasons, we strongly believe that
in the coming years also, the Bank strongly believes that in the coming years also, the
Bank would be able to attain its earning capacity at an accelerated growth rate.

Bank is also marking a headway for introduction of Credit Card and ATM Card and online
banking operations for clients, bank intends to enter into agreement with reputed
Exchange Companies in USA, UK and UAE for safe and steady flow of foreign
remittances into the country from Bangladesh expatriated working at those places.

We can safely say that we have well positioned ourselves in the banking arena of
Bangladesh with diversified products and financial services to seize the opportunities.
New custom-friendly products are being evolved in the days to come.

7.2 Recommendation

The banks are actually service organizations. The main objectives of the world famous
and successful banking organizations are to making of profit through addressing the
clients time to time with new pieces of service instruments. However my little
experience earned through this internship program took me to customers varying
demands. I had several frank discussions with the clients and officials, which has helped
me to know about the aforesaid findings and draw the following recommendation.


Competitive advantage By Bangladesh Commerce Bank Ltd

Competitive advantage By Bangladesh Commerce Bank Ltd

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