Brac Bank 2014

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LETTER OF TRANSMITTALLETTER OF TRANSMITTAL

December 26, 2013

Mr. Md. Ataur Rahman

Executive Director

B!"#$e%& B!' Tri!i!" Ac$em(

B!"#$e%& B!'

Mir)ur*02, D&'

Subject: Submission of Report on Practical Training in Brac Bank

imited+

Der Sir,

It i% ! &o!or !$ "ret )#e%ure -or u% to %ubmit t&e re)ort o! +.rctic#

Tri!i!" i! Brc B!' Limite$+, % re/uireme!t -or com)#eti!" our

Fou!$tio! Tri!i!" our%e i! B!"#$e%& B!' Tri!i!" Ac$em( e

&ve trie$ our #eve# be%t to m'e t&i% re)ort %ucce%%-u# o!e T&i% re)ort

&% "ive! u% ! o))ortu!it( to ))#( our t&eoretic# ex)erti%e !$ i$e% i!

combi!tio! it& t&e )rctic# ex)erie!ce e &ve "t&ere$ i! our

)rctic# tri!i!" i! commerci# b!'

e &o)e (ou ou#$ !$ t&e re)ort i! ))ro)rite m!!er e ))recite

(our coo)ertio! !$ &o)e (ou i## c## u)o! u% it& !( /uerie%

occ%io!e$ b( t&i% re)ort T&!'i!" (ou !$ #oo'i!" -orr$ to receive

(our cor$i# ))rov# o- our %ubmi%%io!

Si!cere#( 4our%

55555555555555555555555

Md. !abibur RamanRoll " #$

55555555555555555555555

Md. Abdur Rouf

Roll " #%

55555555555555555555555

Mohammad Saiful &slamRoll " #'

Bangladesh Bank Training Academ() Mirpur"$') *haka ."e 7

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A8NOLED9EMENTA8NOLED9EMENT

T&e %ucce%%-u# ccom)#i%&me!t o- t&i% re)ort i% t&e outcome o- t&e

co!tributio! !$ i!vo#veme!t o- !umber o- )eo)#e, e%)eci##( t&o%e &o

too' t&e time to %&re t&eir t&ou"&t-u# "ui$!ce !$ %u""e%tio!% to

)re)re t&e re)ort !$ it i% our )#e%ure to t'e t&i% o))ortu!it( to

c'!o#e$"e t&e "ui$!ce, &e#) !$ %ere!it( o- t&em

At t&e be"i!!i!", e ou#$ #i'e to )( our "rtitu$e to t&e A#mi"&t( -or

"ivi!" u% t&e bi#it( to or' &r$ u!$er )re%%ure

e ou#$ #i'e to t&!' our Or"!i:tio!# Su)ervi%or Mr M$ Atur

R&m!, Executive Director, -or "ivi!" u% t&e o))ortu!it( to im)#eme!t

our '!o#e$"e !$ %tu$ie% !$ to o;er u% t&e o))ortu!it( to u%e t&e

re%ource% o- t&i% c$em( -or t&e )ur)o%e o- t&i% re)ort e ou#$ #%o

#i'e to t&!' our &ie- our%e Director Mr S' A:i:u# Deve#o)me!t, Brc B!' Limite$ -or t&eir "ui$!ce i! our )rctic#

tri!i!"

L%t#(, e #%o ex)re%% our cor$i# t&!'% to our co##e"ue% -or t&eir 'i!$

&e#) !$ coo)ertio! &e!ever !ee$e$


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E?E@TIE S@MMAR4E?E@TIE S@MMAR4

T&i% re)ort i% )re)re$ o! t&e b%i% o- O! De%' Tri!i!" i! ommerci#

B!'i!"C t BRA B!' Lt$ T&e tri!i!" )ro"rm &e#)e$ u% to c/uire

'!o#e$"e bout t&e )rctic# %itutio! o- !!ci# i!%titutio! T&i%

)ro"rm &e#)e$ u% to im)#eme!t our t&eoretic# '!o#e$"e i! to )rctic#

!$ re#i%tic or' e!viro!me!t

I! t&e "e o- mo$er! civi#i:tio!, b!' i% )#(i!" vit# ro#e to 'ee) t&e

&ee# o- eco!omic $eve#o)me!t movi!" B!' )rovi$e% me!% !$

mec&!i%m% o- tr!%-erri!" comm!$ over re%ource% o- t&o%e &o &veexce%% o- i!come to t&o%e &o c! m'e u%e o- t&e %me -or $$i!" to

t&e vo#ume o- )ro$uctive c)it# T&ere re #r"e !umber o- %m##

mou!t o- %vi!"% t&t re "e!er##( re#uct!t to i!ve%t t&eir %ur)#u%

i!come becu%e o- t&eir #c' o- $e/ute '!o#e$"e bout com)#icte$

i!ve%tme!t ;ir% T&e b!' )rovi$e% t&em it& t&e %-et(, #i/ui$it(, !$

)rotbi#it( o- %vi!"% B!'% t'e $e)o%it% !$ i!ve%t t&o%e $e)o%it% i!

&i"&er $e"ree% o- retur! !$ mximi:e t&eir )rot i! bu%i!e%%

BRA B!' %trte$ it% bu%i!e%% i! 2001 it& c#er vi%io! to or' % ct#(%t -or t&e vibr!t (et u!b!'e$ SME %ector i! B!"#$e%& T&e B!'

-ocu%e% o! 3. .eo)#e, .#!et !$ .rot T&i% i% t&e bri! c&i#$ o- Sir F:#e

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Table of +ontents

Particulars Page ,o

-TT-R / TRA,SM&TTA 01

A+0,1-*2-M-,T 02

-3-+4T&5- S4MMAR6 03

+hapter %: &ntroduction

$78$9

1.1 Origin of the Report 06

1.2 Objective of the Report 06

1.3 Methodology of the Report 07

1.4 Limitations of the Report 07

+hapter ': erie; of BRA+ Bank imited

$

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+!APT-R " %: &,TR*4+T&,

1.1 Origin of the Report

Placement or training program is an indispensable part of /ondation raining Program in

!!" that bridges the gap bet0een the theoretical $no0ledge and practical sitation. e0ere assigned to the !R"# !an$ in Motijheel !r. ' Mirpr !r.& ead Office& !ac$ Office

and one of their (M 5onal office at (hantinogor& )ha$a to ta$e the real ban$ing e6perience

in order to reinforce $no0ledge ac7ired so far from the !!" training program. 8n this

training program& each trainee is re7ired to attend 9On )es$ raining: in a ban$ and to

prepare a report on practical e6perience. his report is tentatively prepared to complete or

!!" training program.

1.2 Objectives of the Report

he main objective of the stdy is to $no0 over all ban$ing of !R"# !an$ Ltd. and to have

an overall idea on ho0 it operates in the competitive mar$ets deliver 0ith cstomer;s

satisfaction and retain them. !esides this main objective there are some specific objectives.

o $no0 the facilities offered by the !R"# !an$ Limited to develop their cstomer;ssatisfaction and retain them.

o familiari5e rles and reglation provided by !angladesh !an$.

o $no0 abot the mar$eting process and plan of !R"# !an$ Limited that attain it

the premier financial instittion.

o be familiar 0ith day to day fnctioning and services offered by a commercial

ban$.


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o ma$e a bridge bet0een the theories and practices on ban$ing operations.

1.3 Methodology of the Report

)ifferent data and information are re7ired to meet the goal of this report. hose data and

information 0ere collected from varios sorces& sch as& primary and secondary 0hich is

sho0n belo0

u%to$i# Service%

.rob%&i B!'i!".rob%&i B!'i!"

or)orte B!'i!"

Divi%io!

or)orte B!'i!"

Divi%io!

Reti# B!'i!"Reti# B!'i!"

SME B!'i!"SME B!'i!"

Ri%' M!"eme!tRi%' M!"eme!t

Re%erc& >

Deve#o)me!t

Re%erc& >

Deve#o)me!t

or)orte A;ir%or)orte A;ir%

"R#$ )PL toc% "ro%erage

Ltd.

"R#$ *nvestment Ltd.

"R#$ ##+#, )-change Ltd.

bash

"R#$ */ ervice Ltd.

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2.0 Organogram of "R#$ "an% Limited

!R"# !an$ follo0s decentrali5ed organi5ational strctre for delegation of athority and

responsibility to do0ntheline staffs. his empo0ers the managers to ta$e 7ic$ decision in

this changing ban$ing environment.


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2. trategic "!siness nits of "R#$ "an% Limited

he main strategic bsiness nit of !R"# !an$ Limited is (M ban$ing. 9hin$ (M& thin$

!rac !an$ Limited: is the main brand ethos of the ban$. !rac !an$ has arond *?A of its

bsiness in (M to serve the missing middle of the contry. 8n addition to (M& it is also one

of the contry leaders in retail ban$ing.


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2. Prod!cts and ervices Provided by "rac "an%

Limited

!R"# !an$ has all type of ban$ing prodcts in its bas$et. hat a person needs deposit of

fnd& loan for investment or a credit card for shopping and traveling prposejst he has to go

to !R"# !an$. o0ever it can increase its =R! prodcts to serve the high remittance

providers of the contry.


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+!APT-R " =: 2-,-RA BA,0&,2

Beneral !an$ing is the most important side for every ban$. !an$ is nothing bt a middleman

bet0een lenders Csrpls nitD and borro0ers Cdeficit nitD. o provide loan ban$ need hge

amont of money from the depositors. Beneral ban$ing is the side 0here the ban$ offers

different alternatives to the client to depositors and remitted their money. o encorage the

clients& ban$ offers different option in front of the clients. Most of these options are very

mch similar among the ban$s bt the cstomer service and facilities are different.


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Beneral !an$ing

Beneral ban$ing of !R"# !an$ Ltd. is divided into for parts. hese areomen )ntreprene!r $ell 6>)$7

omen ntrepreners #ell C#D& one of its $inds in the ban$ing indstry of !angladesh&

0as lanched in 2??+ nder (M !an$ing )ivision 0ith an objective to offer access to


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formal finance along 0ith training and technical assistance to the 0omen entrepreners

across the contry. 8n line 0ith the vision of financing and developing 0omen entrepreners

across the contry& omen ntreprener #ell C#D of (M !an$ing )ivision has

accelerated the gro0th engine of 24+ (M;s 0ith !) 1?* crore in 2?1? and has also

arranged training and idea sharing programs for 0omen entrepreners. ill introdction #

has catered to fnd re7irement of 3*42 cstomers 0ith !) 14-.@3 crore. 8n order to give a

platform lo (M omen ntrepreners to discss abot different isses of (Ms 0ith

related commnities and policy ma$ers !R"# !an$ too$ an e6tra step and sponsored the 2nd

=ational (M omen ntrepreners #onference organi5ed by (M /ondation.

Medi!m "!siness nit

Manufacturing Business Unit (MBU):

he Manfactring !siness ,nit 0as lanched in "gst 2??- nder (M !an$ing

)ivision. he objective of lanching this nit is to better serve the manfactring sector by

providing sectorfocsed loan and other services. ,nderstanding the importance of

manfactring sector& one of the critical sectors for a contry;s economic gro0th& (M

!an$ing )ivision started Manfactring !siness ,nit and the phenomenal response to this

bsiness division can be apparent from the loan disbrsement of !) 1?3.4? crore to 2?-

cstomers in 2?1?.

Supplier and Distributor inance Unit (SD):

(pplier and )istribtor /inance ,nit 0as lanched in (eptember 2??- to engine the gro0th

of lin$age indstry& an indispensable sector for any indstry.

!ommercial !redit Unit (!!U):

he #ommercial #redit ,nit C##,D 0as lanched in providing financial services in the rade

/inance sector 0ith pre and post import facilities. he commercial #redit ,nit of (M

!an$ing )ivision has met L# retirement of !) 2-.3? crore of 3*1 (M clients in 2?1?.

"ehicle inancing Unit:


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his ne0ly formed bsiness nit of (M !an$ing is aimed at financing the commercial

vehicles of (Ms. his nit 0ill operate in some selected areas of the contry.

Product De#elopment and $esearch Unit:

his nit primarily assesses the mar$et and observes the potential of developing prodct or

service to cater different re7irements of the e6istingEpotential cstomers of (M !an$ing.

Prodct )evelopment 0ing also develops campaigns and ta$es initiative to design

merchandises& 0ith the help of the creative and commnication division.

SM &perational $is' Management Unit: /R-&2, -3+!A,2-

0.1 Resident 5oreign $!rrency #cco!nt 6R5$(7

Resident /oreign #rrency "ccont is an interest bearing foreign crrency accont. he fnd

in this accont is $ept as deposit. he accont can be maintained in ,()& B!P& or ro. he

accont does not have "M or )ebit card facility. "ny Resident !angladeshi national& 0ho

has retrned from abroad 0ithin the last 3? days& can open R/#) "ccont as per !angladesh

!an$ re7irement. his accont cannot be opened in joint name. Minimm amont re7ired

to open is ,() 1??? or B!P *?? or e7ivalent crrency in ro. 8nterest in foreign e6change

shall be payable on balances in sch acconts if the deposits are for a term of not less than

one month and the balance is not less than ,( 1??? or B!P *?? or its e7ivalent.

0.2 ,onAResident 5oreign $!rrency #cco!nt 6,5$(7

=onResident /oreign #rrency )eposit C=/#)D "ccont is an interest bearing foreign

crrency accont. he acconts are $ept in the natre of erm )eposits. he accont can be

maintained in ,()& B!P& or ro. he accont does not have "M or )ebit card facility.

!angladeshi nationals staying in another contry and earning foreign crrencies or after their

retrn to !angladesh 0ithin last si6 months can open =/#) "ccont. Minimm amont

re7ired to open is ,() 1??? or B!P *?? or e7ivalent crrency in ro. 8n cases of /oreign

=ationals and Organi5ations& minimm amont of term deposit shold be ,() 2*&??? or its

e7ivalent in B!P& or ro. he acconts are in the natre of term deposits matring after

one month& three months& si6 months and one year. 8n case of prematre repayments& the

interest amont 0ill be forfeited. 8nterest on deposit of =/#) accont is e6empted from the

ta6 payable nder the 8ncome a6.


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0.3 5oreign Remittance

Remittance (ervice is one of the core bsiness areas of !R"# !an$ Limited. he ban$ has

introdced a highly secred& innovative and 7ality remittance service based on advanced

technology. hrogh this service any one can send money to hisEher relatives from abroad

even to the remotest area of the contry 0ithin ma6imm -2 hors. "t present !R"# !an$

Limited is considered one of the top most leading !an$s in serving nonresident

!angladeshis. =o other ban$s in !angladesh have offered sch a 0ide range of prodcts and

7ality service to the =R! segment so far. hese 0ide ranges of prodct and services are

bac$ed by a very dynamic 8 secrity and bsiness spport team of !R"# !an$ Limited.

Remittance Receiving Methods of "R#$ "an% Limited

here are three 0ays !R"# !an$ Limited receives in0ard remittances from abroadestern nion

8n !angladesh estern ,nion is operating for abot last 14 years and !R"# !an$ is the

"thori5ed "gent of estern ,nion since March 2??4. #rrently 1+ private ban$s are

providing the service as agent of estern ,nion Money ransfer& of 0hich !R"# !an$

holds the first position. =ot only that& in 2??+& Blshan !ranch has become a member of

9#lb *?? of estern ,nion:& 0hich is the clb of top *?? , locations throghot the

0orld. /nd can be remitted from any contry of the 0orld throgh estern ,nion.

!eneficiary can get the money in either of the follo0ing 0aysea%nesses;

Less focs on main stream corporate ban$ing

igh loan provisioning Cas a legacy of lo0 7ality loan disbrsementD

igh staffing cost compared to other ban$s of same si5e

)istribtion channels is not offering fll pledged ban$ing

Opport!nities;


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commerce and ban$ing

ntering into foreign mar$et

!ndle offer of insrance 0ith ban$ing prodcts

=et0or$ bsiness of alternate channels 0ith other ban$s

(elling of ban$ing prodcts throgh !R"#EbGash offices

/hreats;

8ncreasing ' innovative frad ' forgery

#ommencement of ne0ly entrant ban$s

Political ' economic instability

Lo0 investment opportnities

.2 $R 9 )thical Practices by "R#$ "an%;


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o e6pand and carryot social activities in a focsed 0ay& !R"# !an$ has lanched a #(R

)es$ 0ith a dedicated team. he des$ is initiated in line 0ith the gidance of !angladesh

!an$& 0hich helps the ban$ to pt focs on different #(R activities and ensre transparency.

!R"# !an$ Limited follo0s the 3Ps CPeople& Planet and ProfitD philosophy in its operation.

!esides core bsiness& the ban$ carries a strong emphasis on #orporate (ocial Responsibility

initiatives that spport the people and protect the planet. !R"# !an$ prioriti5es on

sstainable development approach rather than short term #(R programs. #rrently& !R"#

!an$;s #(R program focses on nvironment4 dcation4 ealth4 Hong leadership4 #ltre

' heritage and #ommnity development.

.3 Recommendations;


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ith or little e6perience in the ban$ 0ith vast and comple6 ban$ing system& it is very

difficlt for s to recommend. o0ever on the basis of or observation 0e 0old li$e to

recommend the follo0ing points

Brac Bank 2014

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