Internship Report
An InternshipAn Internship Report Report
OnOn
Diversified PortfolioDiversified Portfolio&&
SME BankingSME Bankingofof
“Diversified Portfolio & SME Banking of Eastern Bank Limited” 1
Internship Report
Prepared forPrepared for
Rubiat BegumRubiat BegumLecturer in FinanceLecturer in Finance
Faculty of Business StudiesFaculty of Business StudiesBangladesh University of Business & TechnologyBangladesh University of Business & Technology
(BUBT)(BUBT)
Prepared byPrepared by
Md. Rezwan KabirMd. Rezwan KabirID no. 02033101015ID no. 02033101015
BBA ProgramBBA Program11stst Intake Intake
Bangladesh University of Business & TechnologyBangladesh University of Business & Technology (BUBT)(BUBT)
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Date:___________Date:___________
Date:___________
Mrs. Rubiat BegumLecturer in FinanceFaculty of Business StudiesBangladesh University of Business & Technology (BUBT)MirpurDhaka-1216
Subject: Subject: Submission of Internship Report on “Diversified Portfolio & SMESubmission of Internship Report on “Diversified Portfolio & SME Banking of Eastern Bank Limited”.Banking of Eastern Bank Limited”.
Dear Madam:
This is my pleasure to present my Internship Report on “Diversified Portfolio & SME Banking of Eastern Bank Limited (EBL)" that you have asked me to prepare as an internship report.
The report shows an analysis and overview of the subject. In preparing the report I tried to gather information which was most complete and relevant.
I have great hope that the report will meet your expectation and aid you in getting a clearer idea about the subject. I will take immense pleasure in providing you with any queries you have regarding the study.
I gained some valuable knowledge and experience while working on this report and I glad to have the opportunity to prepare this report for you.
Sincerely Yours’
____________________________Md. Rezwan KabirMd. Rezwan Kabir
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ID no. 02033101015ID no. 02033101015BBA ProgramBBA Program11stst Intake IntakeBangladesh University of Business & Technology (BUBT)Bangladesh University of Business & Technology (BUBT)
ACKNOWLEDGEMENTACKNOWLEDGEMENT
Success is only possible where there is an engaged heart. InSuccess is only possible where there is an engaged heart. In
preparing this report, it was evident that the engaged heart of minepreparing this report, it was evident that the engaged heart of mine
alone was not enough. I needed the support of significant others. It isalone was not enough. I needed the support of significant others. It is
therefore, difficult not to devote a page of this text acknowledging thetherefore, difficult not to devote a page of this text acknowledging the
assistance we received from number of people.assistance we received from number of people.
First of all, I would like to express my deep gratitude to the almightyFirst of all, I would like to express my deep gratitude to the almighty
Allah for fruitfully preparing this internship report. Allah for fruitfully preparing this internship report.
And then it is important to give credit to my supervisors Mrs. RubiatAnd then it is important to give credit to my supervisors Mrs. Rubiat
Begum, Lecturer in Finance, faculty of business studies at BUBT. ForBegum, Lecturer in Finance, faculty of business studies at BUBT. For
her guidance, constant supervision, constructive suggestions andher guidance, constant supervision, constructive suggestions and
moral support it is possible to prepare this report. moral support it is possible to prepare this report.
I am very much thankful to all the persons of EBL who help me toI am very much thankful to all the persons of EBL who help me to
complete my internship in a meaningful way, without their help it wascomplete my internship in a meaningful way, without their help it was
not possible for me to complete my internship as well as the report.not possible for me to complete my internship as well as the report.
The management of Sonargaon road SME had been extremely helpfulThe management of Sonargaon road SME had been extremely helpful
in providing necessary documents, annual report, statements, andin providing necessary documents, annual report, statements, and
brochure etc. which have helped me lot for preparing this Internshipbrochure etc. which have helped me lot for preparing this Internship
report. I would like to convey my appreciation and thanks for thosereport. I would like to convey my appreciation and thanks for those
who have guided me generously with the right knowledge for thiswho have guided me generously with the right knowledge for this
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report. Shower of thanks to those entire respondents who respondedreport. Shower of thanks to those entire respondents who responded
each and every time in collecting necessary data. each and every time in collecting necessary data.
“Table of Contents”“Table of Contents”
TopicsTopics PagePage
EXECUTIVE SUMMARYEXECUTIVE SUMMARY 0707
Chapter- 1
08-13
IntroductionIntroductionOrigin of the ReportOrigin of the ReportStatement of the reportStatement of the reportRational of the studyRational of the studyObjectives of the studyObjectives of the studyScope of the studyScope of the studyMethodologyMethodologySources and methods of data collectionSources and methods of data collectionLimitations of the studyLimitations of the study
Chapter- 2
14-17An Overview Of Eastern Bank Limited (EBL)An Overview Of Eastern Bank Limited (EBL)VisionVisionMissionMissionValuesValuesJob LevelJob Level
Chapter- 318-33Diversified Portfolio of EBL:Diversified Portfolio of EBL:
Consumer BankingConsumer BankingCorporate BankingCorporate BankingSME BankingSME Banking
Chapter- 4
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34-41SME Banking:SME Banking:The Case for the SMEsThe Case for the SMEsPlace of SMEs in the National Economy of BangladeshPlace of SMEs in the National Economy of BangladeshThe importance of the SME sectorThe importance of the SME sectorCurrent Scenario of SME financing in BangladeshCurrent Scenario of SME financing in BangladeshSME Banking of EBL:SME Banking of EBL:Products and Services (Mid Segments)Products and Services (Mid Segments)Products (Small Segments)Products (Small Segments)
Chapter- 5 42-44
CCREDITREDIT R RATINGATING R REPORTEPORT OFOF E EASTERNASTERN B BANKANK L LTDTD..
Chapter- 6 45-52
FFINANCIALINANCIAL H HIGHLIGHTSIGHLIGHTS OFOF EBL EBL
Chapter- 7 53-56
CCONCLUSIONONCLUSION
Chapter-8 57
BibliographyBibliography
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EXECUTIVE SUMMARYEXECUTIVE SUMMARY
This is an internship report based on the internship program tookThis is an internship report based on the internship program took
place in Eastern Bank Limited at Sonargaon Road in SME Banking.place in Eastern Bank Limited at Sonargaon Road in SME Banking.
The main objective of this report is to analysis the diversified portfolioThe main objective of this report is to analysis the diversified portfolio
and SME Banking of EBL. and SME Banking of EBL.
I start my internship to the 16I start my internship to the 16thth of August with an Office order issued of August with an Office order issued
by the HR of EBL. Initially I started my internship at Principalby the HR of EBL. Initially I started my internship at Principal
Branch’s SME Banking then I was shifted to the Sonargaon Road SMEBranch’s SME Banking then I was shifted to the Sonargaon Road SME
Banking. Banking.
In a word Sonargaon road SME Banking serves its customers throughIn a word Sonargaon road SME Banking serves its customers through
two segments; Small Segments and Mid Segments. two segments; Small Segments and Mid Segments.
I got only three months to gather practical knowledge from thisI got only three months to gather practical knowledge from this
branch, although it was too difficult to gather maximum and properbranch, although it was too difficult to gather maximum and proper
knowledge within this short range of time.knowledge within this short range of time.
I tried my best to study the materials related with my topic andI tried my best to study the materials related with my topic and
observed import and export performed by EBL, SME and examineobserved import and export performed by EBL, SME and examine
relevant official and others published and unpublished data, annualrelevant official and others published and unpublished data, annual
reports of EBL, in order to prepare this report.reports of EBL, in order to prepare this report.
I have equally faced coI have equally faced co--operation and many obstacles simultaneously.operation and many obstacles simultaneously.
I hope this report would be able to portray the real status ofI hope this report would be able to portray the real status of
“Diversified Portfolio & SME Banking of Eastern Bank LTD.” My effort“Diversified Portfolio & SME Banking of Eastern Bank LTD.” My effort
will be meaningful if this report serves the purpose effectively. will be meaningful if this report serves the purpose effectively.
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I have faced new challenge in every steps of banking procedure. I alsoI have faced new challenge in every steps of banking procedure. I also
tried to overcome in every case. I tried to present all the bankingtried to overcome in every case. I tried to present all the banking
activities that I have came across during my internship program.activities that I have came across during my internship program.
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1.0 INTRODUCTION1.0 INTRODUCTION
This internship program was my on the job exposure and provided me with
learning experience and knowledge in several areas. During the first few weeks
of my internship period, I was able to get accustomed to the working environment
of the Bank. As the internship continued, I not only learned about the activities
and operations of correspondent Bank, but also gathered some knowledge about
the basic business of banking in first one month of my internship period.
EBL pursues centralized management policies and gives adequate work freedom
to the employees. This result in less pressure for the workers and acts as a
motivational tool for them, also gives them encouragement and inspiration to
move up the ladder of success. Overall, I have experienced a very friendly and
supporting environment at EBL, which gave me the pleasure and satisfaction to
be a part of them for a while.
While working in here found each and every employee is friendly to me to
cooperate. They have discussed in details about their respective tasks. I also
participated with their works. So I learnt the operations regarding their works.
1.1 Origin of the Report: 1.1 Origin of the Report:
The report named “Diversified portfolio & SME Banking” of Eastern Bank Limited
was offered on August 16, 2007 as a requirement for the completion of the
Internship program as a student BBA program of Bangladesh University of
Business & Technology (BUBT).
The primary goal of the internship program is to provide the intern with the job
experience by orienting the intern with the organization and an opportunity for the
intern to relate the theoretical conceptions in the real business environment. The
program covers a period of three months of period. The duration of the internship
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attachment with the organization was from August 16, 2007 to November 16,
2007.
1.2 Statement of the report:1.2 Statement of the report:
Small and Medium Enterprises (SME) in Bangladesh contributed 25% of gross
domestic product (GDP) and 80% of the industrial jobs of the country in 2004.
According to ADB, the country's estimated 6 million SMEs and micro enterprises
firms of less than 100 employees have a significant role in generating growth and
jobs. This is a sector that has its own distinct needs and requires specialized
focus. Eastern Bank Ltd. (EBL) has launched SME Banking in early 2005 with
this view in mind. EBL Provides:
SMEs with easy access to financing.
Deliver products that ensure superior returns to our customers.
Orient customers with industry trends, regulatory issues etc, for their
success.
Value long-term relationship banking.
1.3 Rational of the study: 1.3 Rational of the study:
Bank is the heart of the economics and banking is the blood circulation of
country’s economic growth. Banks perform a significant role to serve the needs
of the society in different sectors, such as: capital formation, large scale of
production, industrialization, growth of trade and commerce etc. and banks are
contributing a lot of aspect.
EBL has already emerged as one of the world wide recognized banks due to its
foreign exchange and foreign trade trend according to their banking principles.
SME banking is a new diminution of banking where ‘Small & Medium businesses
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are highly focused. So I tried to represent their performance and problems and
prospects.
1.4 Objectives of the study: 1.4 Objectives of the study:
The objectives of this research paper are as below:
To acquire practical knowledge about the overall activities of SME
Banking of EBL.
To have a general idea about bank in terms of different functions and gain
experience on different functional departments.
To cover a comprehensive analysis of different Segments of EBL.
To study and understand the various services offered by this bank to its
clients.
To study how EBL has maintained growth in its banking business by
maintaining and enhancing its relationship with its clients.
To highlight the problems and necessary recommendations to overcome
the problems.
To know the performance of EBL in every aspects.
To understand the banking environment of private commercial bank in
Bangladesh.
By applying the theoretical knowledge in the bank to recommend on banks
operations and management.
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1.5 Scope of the study: 1.5 Scope of the study:
The scope of the study includes problems and prospects Eastern Bank Limited.
Eastern Bank Limited has 25 branches at present. Being centralized bank all the
branches treaded as AD to perform foreign exchange and foreign trade activities.
The study on mentioned topic was conducted at Sonargaon road SME banking of
with a view to find out the problems and prospects of EBL.
1.6 Methodology1.6 Methodology
In this study, exploratory research was undertaken to gain insights and
understanding of the overall different SME banking system and also to determine
some of the attributes of service quality in Banks. After that a more
comprehensive conclusive research was undertaken to fulfill the main purpose of
the study.
1.6.1 Sources and methods of data collection:1.6.1 Sources and methods of data collection:
Both primary and secondary sources have been utilized for collecting
necessary data to scrutinize EBL. Primary sources include face-to-face
interview with respective officials. Secondary sources consist of several
reading materials, such as journals, brochures, and annual reports.
1) Primary sources:
(A) Official record.
(B) Oral and informal interview of officials and employees in EBL.
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2) Secondary Sources:
(A) Annual report of EBL.
(B) Printed forms and documentation supplied by EBL.
(C)Different bruisers of EBL.
(D)Relevant books, journals, booklets etc.
1.8 Limitations of the study: 1.8 Limitations of the study:
One of the crucial limitations is time constraint. As I posted in the Sonargaon
road SME banking initially it was difficult for me to collect related documents and
necessary data. Finally, lack of previous experience in this area was another
limitation. Except these there are many points, those are given below:
SME banking is very busy as well as confidential regarding to some
important project, so getting adequate relevant information is difficult.
Unavailability of sufficient written documents as required making a
comprehensive study.
Lack of in depth understanding of banking activities that prevents me from
going into details.
Lack of enough information on head office since I am working in a branch.
Lack of time.
Lack of required data.
Lack of knowledge.
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2. AN OVERVIEW OF EASTERN BANK LIMITED (EBL)2. AN OVERVIEW OF EASTERN BANK LIMITED (EBL)
VISION
To become the Bank of Choice by transforming the way
we do business and developing a truly unique financial
institution that delivers superior growth and financial
performance and be that most recognizable brand in the
financial services industry in Bangladesh.
MISSION
We will constantly challenge our systems, procedures
and training to maintain a cohesive and professional
tem in achieving service per excellence.
We will create an enabling environment and embrace
a team based culture where people will excel.
We will ensure to maximize shareholders’ value.
We will deliver service par excellence to all our
customers, both internal and external.
VALUES
Service ExcellenceOpennessTrustCommitmentIntegrityResponsible Corporate Citizen
Service Excellence
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We passionately drive customer delight.We use customer satisfaction to accelerate growth.We believe in change to bring in timely solution.
Openness
We share the business planWe encourage two way communicationsWe recognized achievements, celebrate results
Trust
We care for each other We share learning/knowledgeWe empower our people
Commitment
We know our road mapWe believe in ‘continuous improvement’We do not wait to be told
Integrity
We say what we believe inWe respect every relationshipWe do not abuse ‘information power’
Responsible corporate Citizen
We are tax-abiding citizenWe conform to all law, norms, sentiments and values of the landWe promote protection of the environment for our children
Job Level
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Deputy Managing Director (DMD)
Senior Executive Vice President (SEVP)
Executive Vice President (EVP)
Senior Vice President (SVP)
Vice President (VP)
Senior Assistant Vice President (SAVP)
First Assistant Vice President (FAVP)
Assistant Vice President (AVP)
Senior Principal Officer (SPO)
Principal Officer (PO)
Management Trainee Officer (MTO)
Senior Officer (SO)
Officer (O)
Supervisory Officer (SO)
Junior Officer (JO)
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Diversified Portfolio of Eastern Bank Ltd.
Consumer Banking:
EBL Consumer Banking deals with the day to day financial wants of the consumer clients. Our consumer banking products are designed keeping in mind the financial necessities and affordability of the clients. The new IT platform of EBL has enabled its Consumer Banking to offer world class and comprehensive range of financial products and services. These have been fashioned in a manner to fulfill our clients' banking needs with dedicated Relationship Managers who are reaching out to the customers to make sure that the job is done in a systematic manner within the clients time frame. And with our EBL internet banking service, you can now access your EBL accounts and EBL’s services at the click of your mouse
Products:
Current Account Savings Account Fixed deposit Account Savings Insurance Account High Performance Account Monthly Income Plan Monthly Deposit Plan Fast Cash Fast Loan Executive Loan Auto Loan
Current Account:
EBL Current Account is a non-interest bearing account suitable for both corporate and consumer clients. It allows unlimited cash withdrawal facility for customers from any of the 22 EBL branches across the country. There is a minimum balance requirement of Tk. 1.000.00 for maintaining a current account
Savings Account:
EBL Savings Account is suitably designed to meet the savings requirement of the consumer customers willing to save from their hard earned income. It pays interest at competitive rate matching the needs of the customers. Savings Account is very easy to open and can be operated from any EBL branch giving the customers the demographic flexibility. Minimum balance requirement for a savings account is Tk. 15,000.00.
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Fixed Deposit:
EBL Fixed Deposits having flexible tenure ranging from one month to three years allow the customers to get more out of their long term investment. Keeping in mind the income requirement of the customers EBL offers high interest rates. It is very simple to open a fixed deposit account from any EBL branch.
High Performance Account:
You keep a minimum balance of Tk.20, 000.00 under this account. We offer very competitive rates that are tiered into two slabs for deposits up to Tk. 10 lacs and above Tk. 10 lacs.
The interest on your account is calculated on a daily basis and added to your deposit half yearly. If your deposit goes below the Tk. 20,000 limit on any day then you lose interest for that day.
As the EBL High Performance Account is a hybrid account that conjoins the security and growth of a Savings Account with the convenience of a Current Account you get more out of your money while you enjoy the convenience of unlimited cash withdrawal.
You get the highest interest rate on your deposit compared to other similar accounts on offer in the market. EBL High Performance Account is available at all the EBL branches in every major city
Monthly Income Plan (MIP):
EBL Monthly Income Plan is an income plan which helps you to earn a monthly fixed amount on your fixed deposits kept with EBL for a period of 3 years.
All you need to do is keep TK 50,000/- or multiples of it for a period of 3 years. You will earn TK. 328/-(After deduction of Tax) per month on every deposit of TK. 50,000/-, or TK. 525/-(After deduction of Tax) per month on every deposit of TK. 100,000/- for a period of 3 years. You can open any number of MIP of TK 50,000/- or multiples of TK 50,000/-
Monthly fixed interests will be automatically credited to your linked personal Current /Savings/High Performance account on due date.
General information of Monthly Income Plan (MIP):
1. Easy procedure to open MIP 2. Customer must be a Bangladeshi citizen 3. Over 18 years of age 4. Must be an Account Holder of EBL 5. Customer must appoint a Nominee
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6. Minimum balance of MIP is TK 50,000/- 7. Maximum balance any amount in multiples of TK 50,000/ 8. A competitive interest rate of 7% per annum. 9. Minimum and maximum period of MIP is 3 years or 36 months 10.Auto renewal of MIP after three years unless advised otherwise by you 11.Upto 90% Loan facility in the form of EBL FastCash/FastLoan against
MIP principal amount 12.Account access from any EBL branch
EBL Monthly Deposit Plan (MDP):
EBL Monthly Deposit Plan is a savings plan which helps you to turn your small monthly savings into a large amount over a period of 5 years. It is a convenient savings mode which helps your money to grow. To open a Monthly Deposit Plan all you need to do is choose any of the six monthly deposit amount options. You may choose more than one Monthly Deposit Plan of different denomination.
You do not have to turn up to the branch for monthly deposit payments. Monthly deposit will be automatically debited from your linked Current/Savings/High Performance account by standing instruction on due dates.
General information of Monthly Deposit Plan (MDP):1. Easy procedure to open MDP 2. Must be a Bangladeshi citizen 3. Over 18 years of age 4. Must be an Account Holder of EBL 5. Customer must appoint a Nominee 6. Minimum monthly deposit amount is TK 500/- 7. Maximum monthly deposit amount is TK 5,000/- 8. Other Monthly Deposit options are TK 1,000/-, TK 2,000/-, TK 3,000/- &
TK 4,000/- 9. Minimum and maximum period of MDP is 5 years or 60 months 10.A competitive interest @ 7.00% compounded monthly 11.Up to 80% Loan facility in the form of FastCash/FastLoan against MDP
Deposits after 2 years 12.Account access from any EBL Branch
EBL Fast Cash:
EBL Fast Cash is a revolving credit facility. FastCash allows the customer to draw up to a predetermined amount of credit from their Current Account. Customers will only be charged interest for the amount they draw. The minimum limit for EBL FastCash is Tk. 50,000.00
General information of EBL FastCash:
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1. Simple documentation to avail FastCash 2. You must be a Bangladeshi citizen 3. Over 18 years of age 4. You must be an Account Holder of EBL 5. Minimum overdraft limit is TK 50,000/- 6. Maximum overdraft limit is TK 5,000,000/- 7. EBL FDR interest rate + 2.75%: For others securities 11.00% per annum8. Interest is charged only on the withdrawn amount9. Loan is sanctioned within 24 hours of application10. Up to 90% loan facility of the offered security11. Loan tenure is one year which is renewable12. Account access from any EBL branch
Accepted Securities:
EBL Fixed Deposit Receipts (FDR) ICB Unit Certificates Wage Earners Development Bonds
EBL Executive Loan:
EBL Executive Loan is any purpose EMI (equated monthly installment) based credit facility for salaried executives.
No Cash Security No Down payments No Price Quotation/ Invoice required
Amount: Maximum 6 times gross monthly salary
Tk. 50,000/- to 10,00,000/- for Salary A/C holders and lien of Terminal Benefits
Tk. 50,000/- to 6,00,000/- for Salary A/C holders. Tk. 50,000/- to 5,00,000/- for loan against Post-dated
cheques and 1 Personal Guarantee.
Interest rate:
13.25% for Salary A/C holders and lien of Terminal Benefits 14.5% for Salary A/C holders 15% for loan against Post-dated cheques and 1 Personal
Guarantee
Tenor: 12, 24 or 36 months
Eligibility:
Age: Between 25 to 52 years
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Job experience: Minimum 4 years of which at least 1 year with current employer.
Income: Minimum Tk. 15,000/-per month for private organization and Tk. 10,000/- for government employees
Auto Loan:
EBL Auto Loan is here to help you purchase your dream car. It's easy and flexible repayment schedule erase your worries about the burden of a loan. Our Auto loan Scheme will allow you to avail credit up to 75% of the car value. You need to be a Bangladeshi national between the age of 25-55, working in a reputed multinational/ local firm or involved in a reputed business.
The maximum repayment period for EBL Auto Loan is 4 years. You can choose 12, 24, 36 or 48 equated monthly installments (EMI) to repay the loan.
Services of Consumer Banking:
Locker Services EBL 5 to 9
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Online Banking EBL Visa Electron Card Utility Services Bill Collection Tuition Fees Collection Student File
Locker services:
EBL offers three different types of lockers - small, medium and large. They can be used for the safe keeping of personal belongings (jewelry, documents etc.). However nothing illegal can be kept in the locker. The locker holder has to have an account with EBL to get this service. The yearly rate of the lockers range from the smallest one being TK 1000, the medium one being Tk 1500 and the Large one being TK 2500. This service is available at the following branches of EBL.
1. Dhanmondi 2. Uttara 3. Shantinagar 4. Mirpur 5. Gulshan 6. Sonargaon Road 7. O.R.Nizam Road 8. Rajshahi 9. Bogra 10.Chouhatta (Sylhet)
EBL 5 to 9:
This is a service that gives the customer the option to deposit money in the bank beyond banking hours. All the customer has to do is become a member of the EBL 5 to 9 services by providing a nominal yearly fee. The customer being a member will be given a bag and a lock.
He/she can put in money in the bag lock it and deposit the same in the EBL 5 to 9 safe deposit box kept in the branch any time during 24 hours time. The bag upon deposit in the 5 to 9 deposit box will directly go to the bank's secured vault. His/her deposit will be credited to the respective account the following day and the deposit bag will be returned to the customer for further deposits in the future.
This is a convenient 24 hour deposit service especially for small traders and shop owners who feels unsafe keeping their money in the shop or carry it home in the night.
Online Banking:
Flexcube@ is the Internet banking solution that delivers the Corporate, Consumer and Investment Banking products to bank's customers over the
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Net. Our Internet Banking module is a secure, robust and extensible web banking solution. It is anchored on a reusable component framework that complies with industry standards. Conceived specifically to exploit the potential of the web, our new banking platform delivers a modular solution addressing Consumer, Corporate and Investment Banking. Customers will be able to transfer funds, inquire balance, request for cheque book, pay utility bills on-line etc.
Visa Electron online debit card:
First time ever in Bangladesh!
EBL Introduces the Visa Electron online debit card:
Unique Features:
1. With EBL Visa Electron you can now draw cash from the Q-cash ATM network, 24 hours a day through out the year. No need to carry excess cash in your wallet. Your card is electronically linked to your EBL account.
2. EBL Visa Electron is also accepted at Visa merchants with Electronic P.O.S Visa Symbol, where you can pay for merchandise and services.
3. Acceptance - Hassle free acceptance at network of Q-Cash ATMs currently 10 and to be expanded up to 50 by July 2004 and approximately 1000 POS deployed in major cities.
4. Photo card - Displays your photo & signature on front of your card for enhanced security.
What else you can do:
1. Account balance checking from ATMs 2. PIN change facility 3. Cheque book request 4. Mini statement inquiry 5. Statement request
Additional EBL services:1. Avail EBL Internet Banking facility 2. Card for joint account holders as well 3. Real time online transaction. 4. Services of well-trained relationship managers at any of our 22 real-
time branches.
ATM Location Details:
1. EBL, Principal Branch, 10 Dilkusha Dhaka2. EBL, Mirpur Branch, Plot - 14, Main Road -3, Block-A, Sec -11, Mirpur Dhaka3. EBL, Uttara Branch, Plot- 1A, Road-4, Sector - 4, Uttara Model Town, Dhaka
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Eligibility:
Any EBL account holder can be issued the EBL Visa Electron. If you are an EBL account holder, just drop by at any of our sales and service centers, fill up an Application Form. We will courier your card within 7 working days. It is that easy!
Your EBL Visa Electron is the first of its kind in Bangladesh, exactly what you wanted. Become a proud member of EBL card family and discover the vast array of added conveniences- a new dimension in banking!
Utility Services Bill Collection:
1. WASA ( only Dhaka) 2. DESA ( Rajshahi, Bogra, Dhaka-Mirpur Branch) 3. PDB ( Chittagong, Rajshahi Jessore) 4. AKTEL
Internet Service Provider Bill
1. Proshikanet 2. Bdcom Online Ltd3. ConnectBd Ltd4. Access Telecom (BD) Ltd5. In-touch Communication Ltd6. Dhaka Broad Band Network (DBN)7. Spark System Ltd8. Agni Systems Ltd9. Touch Tone Bd Ltd
Tuition Fees Collection:
Scholastica ( Pvt) Ltd Scholastica Transport Service Ltd South Breeze Mirpur Bangla School Aga Khan Education Service System Shahid Smrity School
Student file:
EBL allows students who are going abroad to study to open an account in order to transfer funds to wherever they are going. We take the step to take the permission (if necessary) from Bangladesh Bank on behalf of the customers. For this we need all the documents of the student's previous completed education and his/her (s) acceptance letter from which ever University he/she is going.
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Corporate Banking:
Corporate Banking is an integrated specialized area of the Bank which addresses the diverse financial needs of Corporate Customers.
Local and Foreign Business Houses (Public and Private Limited Companies), NGO's , Associations , Not for profit Organizations , Sole Proprietorship Concerns and Various Government Bodies/Corporations etc are considered to be our Corporate Customers .
Corporate Banking has been established in EBL to cope with the banks strategy to transform into a Business Matrix from the existing Geographical Matrix Modules. Corporate Banking Relationship Teams based in Dhaka and Chittagong are available to understand your business and its requirements. They are specialists in developing high quality financial solutions and to assist you in achieving your business objective. Services provided by Corporate Banking are as follows:
Structuring of Facilities for Corporate Customers. Develops understanding of customer businesses and advises Financial
Solutions Advisory Services/ Financial Consultancy Arrange Loan Syndications Developing Relationship between the Clients and the Bank Processing credit facility requirements and arranging approvals for
credit facilities. Handles pricing issues and Wallet Sizing Exercises to maximizes the
earnings of the Bank as well as of the Client Coordinating service delivery of all EBL distribution channels viz. Sales and Service centers, Trade Services, Treasury, Credit issues as
required for the customer. Provides a one stop service for Credit facilities. Ensures Corporate customers' complaints and Service issues are
promptly addressed. Addresses Credit related issues. Coordinates activities of support unit Credit Administration unit which
prepares security documentation, security registration, and CIB related issues.
Coordinates activities of operating departments in obtaining Central Bank approvals where necessary.
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Services of Corporate Banking:
a. Structuring of Facilities for Corporate customers. b. Providing Financial Solutions c. Advisory Services d. Arrange Loan Syndications e. Developing Relationship between the Clients and the Bank f. Processing credit and other approvals for credit and other facilities. Provides an one stop service for Credit facilities. g. Handles pricing issues and Wallet Sizing Exercises to maximizes the earnings of the Bank as well as of the Client h. Coordinating service delivery of all EBL distribution channels (Sales and Service centers, Trade Services, Treasury, Credit issues as required for the customer. i. Ensures corporate customer's complaints are addressed. j. Relationship Teams of EBL are available to serve you.
Corporate Banking Relationship teams structure:
This comprises of Teams of Relationship Managers.
There are 5 Asset Teams and 1 Cash Management Team in Dhaka
There are 3 Asset Teams in Chittagong Both Dhaka and Chittagong Area have 1 Small Business Unit
each to handle requirements of small businesses (facilities below BDT 1.5 crores).
Corporate Banking Relationship Managers in each of the Outstation Branches for ensuring smooth and uninterrupted services to the Corporate Clients in Rajshahi , Jessore , Bogra , Khulna, Sylhet (Laldighir Par , Moulovibazar , Chouhatta ) .
The relation teams are composed of people specialized in dealing with the needs of business entities and coordinating EBL's service delivery across the EBL network.
Relationship Partners:
Corporate Banking believes in long term relationship. Corporate Banking is managing a well diversified portfolio and the priority is in the following sectors:-
Ceramics Tea
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Construction. Garments Textiles Service Pharmaceuticals. Health care Food & Beverages Poultry &
Hatchery Steel Industry Power car oil and
other infrastructure projects
Mobile Telecom Companies
Media Cement Soap &
detergents,cosmetics
Leather Paper and related
products
Shipping Airlines transport
Jute Building materials
finance Trades Computer &
Electronics Transportation Ship breaking Agro based Batteries and
related industries Commodities
import Steel products Chemical, plastic
& plastic products Edible oil Clinics, Hospitals
and NGO's Educational
Institutions Financial
Institutions Shrimp Export
II. Corporate Lending:
You will find an excellence inventory of products to match your business requirements. Product development is a continuous endeavor of the Relationship Teams to optimize the utility of Corporate Clients. The Product Inventory Shelve contains the following products from which you can choose any one or any combination that fits best with the requirements of your company. We tailor product to the requirements of each customers as required.
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Product of Corporate Banking:
SOD Secured Overdraft OD Overdraft CC (HYPO) Cash Credit against Hypothecation CC (PLEDGE) Cash Credit against PledgePC Packing Credit against Export L/C & Export OrderDemand Loan(Hypo)
Demand Loan against Hypothecation
Demand Loan (Pledge)
Demand Loan against Pledge
Time Loan Time Loan against Other Security/Collateral/SupportTerm Loan Term LoanSLC Sight Letter of CreditULC Usance Letter of CreditBBLC Back to Back Letter of Credit Import Loan (Hypo) Import Loan against HypothecationImport Loan (Pledge)
Import Loan against Imported Merchandise Pledged
LTR Loan Against Trust Receipt Acceptance Acceptance against ULC LBPD Local Bill Purchased DocumentaryFBPD Foreign Bill Purchased DocumentaryLAFB (CLEAN) Loan Against Foreign Bill CleanLAFBD Loan Against Foreign Bill DocumentaryLG Letter of Guarantee -BB / PG / APG / RB / Pay. Gtee BCP (Foreign) Bankers Cheque Purchase (Foreign) BCP (Local) Bankers Cheque Purchase (Local) Fwd FX Forward Contract
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SME Banking:
Small and Medium Enterprises (SME) in Bangladesh contributed 25% of gross domestic product (GDP) and 80% of the industrial jobs of the country in 2004. According to ADB, the country's estimated 6 million SMEs and micro enterprises firms of less than 100 employees have a significant role in generating growth and jobs. This is a sector that has its own distinct needs and requires specialized focus. Eastern Bank Ltd. (EBL) has launched SME Banking in early 2005 with this view in mind.
" Provide SMEs with easy access to financing." Deliver products that ensure superior returns to our customers." Orient customers with industry trends, regulatory issues etc, for their success." Value long term relationship banking.
In short, we want to be the partner in your success.
Customer Qualification:
" Your business can fall within any of these categories:(i) Manufacturing (ii) Trading (iii) Service" You should have at least 2 years of business experience (with proven track record)." The most important securities we look at are:(i) Business performance (ii) Industry reputation (iii) Experience
Our existing and prospective customers generally are in the following businesses:
(i) Manufacturing:
" Packaging" Flour Mills" Suppliers to MNC / LLC" Printing & publishing" Garments accessories " Furniture Pharmaceuticals
(ii) Trading:
" Distributors of Multinational Company (MNC) / Large local Corporate (LLC), Supplier of MNC / LLC " Importer of food & grain, dyes & chemicals, milk powder, motor parts, bicycle parts, motor car,
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electrical and electronic goods, hardware & machinery, poultry feed, garments accessories, construction materials, water pump and generator, cotton yarn, seed distributor, steel sheet, jewellery, edible oil and crude oil" Retailer of readymade garments and boutiques" Restaurant & fast food" Super market" Stationary items" Furniture & wood seller" Drug & medicine seller
(iii) Services:
" Educational institute" Travel agency" Advertisement firm" Shipping agents " Transport / container mover" Clearing & forwarding agent" Gas stations " Real estate companies" Contractors" Non profit organization" Clubs
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The Case for the SMEs
The SMEs worldwide are recognized as engines of economic growth. The commonly perceived merits often emphasized for their promotion especially in the developing countries like Bangladesh include their relatively high labor intensity, dependence on indigenous skills and technology, contributions to entrepreneurship development and innovativeness and growth of industrial linkages.
The case for fostering SME growth in Bangladesh is irrefutable as these industries offer bright prospects for creating large-scale employment and income earning opportunities at relatively low cost for the un-and unemployed especially in the rural areas strengthening the efforts towards achieving high and sustained economic growth which are critically important prerequisites for triggering an exit from endemic poverty and socio-economic deprivation.
These promotional arguments for the SMEs, while universally emphasized are often put forward by their ardent advocates in a small versus large context and thus arouse serious debates concerning their economic viability. Much of such controversies may, however breakdown if the intrinsic virtues specific to SMEs and unavailable to large-scale industries are correctly identified and carefully exploited.
A combined interaction of the forces of product-mix, locational factors, technological advantages and market advantages create opportunities for SMEs to grow and prosper at all levels of development which are often ignored by the traditional approach to their economic strengths and development potentials.
The growing economic significance of the SMEs as sources of new business creation and employment generation in the developed, OECD countries especially since 1970s is now widely recognized in an increasingly growing volume of literature (OECD1997).
The recent structural shifts in industrial production from the Florist approach of mass production to more flexible and adaptable production regime in response to constantly changing market opportunities have led to a notable resurgence of these industries in the West. The re-emergence of the SMEs in the developed world makes economic case for fostering development of these industries stronger than ever before.
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Place of SMEs in the National Economy of Bangladesh
Any precise quantitative estimate of the importance of SMEs in Bangladesh economy is precluded by non-availability of comprehensive statistical informationabout these industries at the national level. The latest BSCIC estimates suggest that there are currently 55,916 small industries and 511,612 cottage industries excluding handlooms. Including handlooms, the number of cottage units shoots upto 600,000 units indicating numerical superabundance of the SCIs in Bangladesh.
Quoting informal Planning Commission estimates, the SMDF puts the number of medium enterprises (undefined) to be around 20,000 and that of SCIs to be between 100,000 to 150,000.
This wide variation in the BSCIC and Planning Commission estimates of the numerical, size of the SMEs might be due to at least two reasons: (a) different set of definitions of the SMEs and (b) different coverage of SME families.
This strongly suggests the need for adopting and using an uniform set of definitions for SMEs by all Government agencies to help formulation of pro-active SME promotion policies. Whatever the correct magnitude, the SMEs are undoubtedly quite predominant in the industrial structure of Bangladesh comprising over 90% of all industrial units. This numerical predominance of the SMEs in Bangladesh’s industrial sector becomes visible in all available sources of statistics on them (Ahmed, M.U 2001).
Together, the various categories of SMEs are reported to contribute between 80 to 85 per cent of industrial employment and 23 per cent of total civilian employment (SEDF, 2003)2. However, serious controversies surround their relative contribution to Bangladesh’s industrial output due to paucity of reliable information and different methods used to estimate the magnitude. The most commonly quoted figure by different sources (ADB, World Bank, Planning Commission and BIDS) relating to value added contributions of the SMEs is seen to vary between 45 to 50 per cent of the total manufacturing value added. While the SMEs are characteristically highly diverse and heterogeneous, their traditional dominance is in a few industrial sub-sectors such as food, textiles and light engineering and wood, care and bamboo products.
According to SEDF sources quoted from ADB (2003), food and textile units including garments account for over 60% of the registered SMEs. However, as identified by various recent studies, (Ahme, M.U. 2001, ADB 2001, US-AID
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2001) the SMEs have undergone significant structural changes in terms of product composition, degree of capitalization and market perpetration in order to adjust to changes in technology, market demand and market access brought by globalization and market liberalization.
The importance of the SME sector
• Employment of medium to low skilled workers.• Increased cash flow in Rural/Semi-Urban Areas.• Reduction of Poverty.• Reduce Urban Migration.• Development/Formation of Linkages .• Enhance living standards and consumption.• Economic Growth (GDP growth).• Creation of a semi-urban entrepreneur class.
Current Scenario of SME financing in Bangladesh
• Commercial Banks and Financial Institutions have incorporated SME banking.
• This done by only re-designing and scaling down their current financial products for the SME customer.
• Therefore expected value addition not created in SME financing, since it continues to be traditional financing.
• Micro finance institutions (MFI’s) haven’t yet entered the Small business market.
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Enhance Living
Standards
Employment
SME
Reduce Poverty
Economic Growth
Formation of
Linkages
Creation of Entreprene
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SME Banking of EBL:
Small and Medium Enterprises (SME) in Bangladesh contributed 25% of
gross domestic product (GDP) and 80% of the industrial jobs of the
country in 2004. According to ADB, the country's estimated 6 million
SMEs and micro enterprises firms of less than 100 employees have a
significant role in generating growth and jobs. This is a sector that has
its own distinct needs and requires specialized focus. Eastern Bank Ltd.
(EBL) has launched SME Banking in early 2005 with this view in mind.
Provide SMEs with easy access to financing.
Deliver products that ensure superior returns to our customers.
Orient customers with industry trends, regulatory issues etc, for
their success.
Value long term relationship banking.
Customer Qualification:
Business can fall within any of these categories:
Manufacturing
Trading
Service
One should have at least 2 years of business experience (with proven
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track record).
The most important securities we look at are:
Business performance
Industry reputation
Experience
Products and Services (Mid Segments):
Financing Amount:
Facilities range upto Tk. 5 crore for one or multiple product(s);
products are suited for all types of business needs in every stage of
your business, which falls in cash management, lending, and trade
services categories. The products are:
Cash Management:
Current Account
Transactional account with cheque book and debit card facilities, along with online and internet banking.
Short Term Deposit (STD) Account
Interest bearing account that can be linked to the current account to combine the facilities of both accounts.
Fixed Deposit (FD)
High interest bearing time deposit that has to be kept with the bank for a time period to earn the interest.
Lending:
Overdraft/Cash Credit
Fully secured line of credit with a tenor of 12 months and can be renewed on maturity.
Demand Loan Loan for financing inventory procured locally or financing duty/tax against hypothecation of inventory and book debts.
Time Loan (Work Order Financing)
Loan for short term need against work order from reliable benefactor.
Term Loan Long term loan to finance fixed asset against
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hypothecation of the fixed asset.
Trade Services:
Letter of Credit Financing of import of goods against title of the documents or sales.
Import Loan Financing of imported merchandise against hypothecation or pledge of inventory or book debts.
Guarantee Bid bond, performance guarantee, and payment guarantee for contractual obligation.
Local Bill Purchase
Purchase or discount of local usance L/C with upfront realization of interest.
Foreign Bill Purchase
Cash against documents or negotiation of export document against sight or usance export L/C.
Products (Small Segments):
EBL ASA
Any business purpose loan from Tk. 200,000.00 to Tk.
1,000,000.00.
To be repaid within maximum 24 months (next loan is
payable within 60 months).
No requirement for collateral security.
Loan repayable in equal monthly installment.
EBL PUJI
Any business purpose loan from Tk. 1,000,000.00 to Tk.
5,000,000.00.
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To be repaid within maximum 36 months (next loan is
payable within 60 months).
Collateral security required along with charge on
business assets.
Loan repayable in equal monthly installment.
EBL UDDOG
Any business purpose loan from Tk. 600,000.00 to Tk.
5,000,000.00.
Without land/building mortgage.
To be repaid within 60 months.
Loan repayable in equal monthly installment.
50% of the loan amount in the form of fixed deposit is
needed.
EBL AGRIM
Any business purpose loan from Tk. 200,000.00 to Tk.
950,000.00.
No collateral security required.
Lone tenure 1 month to 6 months.
Single shot payment at maturity but interest will be
realized on monthly basis
Partial payment and early payment allowed no additional
fee required.
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Credit Rating of Eastern Bank Limited
RATIONALE
CRISL reaffirms “A” rating to Eastern Bank Limited in long term and St-3 rating for short term. It has been done on the basis of good fundamentals such as satisfactory capital adequacy, good asset quality, diversified product lines, significant non funded business, experienced top management etc. However the above factors are moderated to some extent by limited market share, dependency on term deposit, high loan to deposit ratio etc. Financial Institutions rated in this category are adjudged to offer adequate safety for timely repayment of financial obligations. This level of rating indicates a corporate entity with an adequate credit profile. Risk factors are more variable and greater in periods of economic stress than those rated in the higher categories. The short term rating indicates good certainty of timely payment. Liquidity factors and company fundamentals are sound. Although ongoing funding needs may enlarge total financing requirements, access to capital markets is good. Risk factors are small.
PREVIOUS RATING
CRISL earlier assigned “A” rating in the long term and ST -3 rating in the short term to Eastern Bank Limited on the basis of its strong fundamentals such as satisfactory capital base, strong non funded income base, diversified product line, satisfactory asset quality and prudent investment policy. However, the above ratings are constrained to some extent by the limited market share, marginal liquidity position, dependency on term deposits etc. These ratings were assigned on the basis of financials up to 30th June 2006. Financial Institutions rated in this category are adjudged to offer adequate safety for timely repayment of financial obligations. This level of rating indicates a corporate entity with an adequate credit profile. The short-term rating also indicated the high certainty with regard to the obligor’s capacity to meet its financial commitments.
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Credit Rating of EBL
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EBL started its journey from a meager information technology platform. The branches were operating in a standalone/decentralized environment using a local software where limitations were in abundance. It was limited from the delivery channels perspective for providing the customers with maximum benefits in terms of banking products and services. The most private banks in Bangladesh generally have been less competitive with their MNC bank counter parts. The sense of customer support and service at these private banks, literally, were not up to the par with what the customers came to expect from these MNC banks. So, for obvious reasons privates started loosing businesses to these MNC banks.
Eastern Bank Limited Provides Online banking services, E-commerce Banking, EBPP Services, E-Banking Facility, E commerce Transaction, E-commerce Banking could be provided effectively. All the branches of Eastern Bank Ltd will come under one online Banking network so that clients will enjoy the Online banking services in Bangladesh. Eastern bank Ltd will help to enjoy Online banking service in Bangladesh. Electronic Banking service in Bangladesh is provides a new step of Electronic Banking in Bangladesh. Eastern bank ltd also helps for real time banking in Bangladesh.
EBL management consisting of dynamic bankers from foreign banks working environment could assess the benefits out of Information Technology [IT] in utilizing it to the maximum through their experience. Their guideline and streamlined decision making has played a pivotal role in the implementation process of Flexcube software in the branches.
EBL is the pioneer Bank in laying foundation to the world class banking software in Bangladesh. No other private Banks in Bangladesh could implement foreign banking software with success in the past.
The concerned IT resources worked relentlessly over the months played a significant role behind the successful implementation of Flexcube banking software in EBL branches.
Essentially, EBL was not in a well connected situation. Data Communication was limited to secluded offices in a very limited fashion. EBL now is a different scenario. EBL HO is now connected with the branches all around Bangladesh. Here is a breakdown of what the data communication infrastructure looks like today:
• High Speed DDN and Radio Link connectivity between Branches and the Head Office. • Local Area Network (LAN) - providing data network connectivity at the Head Office and the Branches.• Metropolitan Area Network (MAN) - connecting the DHK branches with HO, CTG branches with Agrabad and SYL branches with Chouhatta.• Wide Area Network (WAN) - enabling the data network circle between Head
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Office and the Branches.• Solid foundation over data and network security implementation.
EBL wanted to stand up in the crowd. For moving out of the ramshackle, EBL management under the dynamic leadership of the honorable Directors of the Board switched over to a centralized platform using a world renowned banking software which was the #1 most popular software in the world for the year 2003. The result has been incredible. We list a few of the benefits of centralization here.
At a glance - Benefits from Changes
Standalone systems = > Centralized system Branch Banking = > Anywhere Banking
Anywhere Banking = > EOD at Data Centre Telegraphic Transfers = > Online Inter-branch transfer
Hold accounts = > Online Inter-branch transfer Produce MIS at Branch = > Centralized MIS
Poor ‘Control’ reports = > Improved ‘Control’ reports Audit needs branch visit = > MIS available at Head Office
Information on paper = > Information in CIF On Card Signature/Pix = > Digital Signature/Pix
No Funds Management = > Automatic Sweep-in/Out
EBL Banking Benefits:
Flexcube banking software automated in all branches of EBL has the adaptability for incorporating the delivery channels like, Internet Banking, Tele-Banking, ATM/POS, Home Banking, Wireless Access Protocol, Call Centre are all superb services which a customer can avail in due course.
EBL’s repertoire of hardware is highly sophisticated as no other banks in Bangladesh has availed this in recent times. The combination of hardware will help consolidate the backbone for the plethora of services provided to the customers by the Bank for the years to come. Moreover, EBL, country wise bade farewell to the lackluster range of hardware which were in use over the years.
Anywhere 24 hours X 7 days banking Internet banking, Tele banking and ATM/POS One Stop Shop for all your banking need Significantly reduced time in banking transactions Sophisticated Customer Information at the fingertips and can be
provided anytime
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Online Inter-branch Transfer Any Branch Pay Order System Digital Signature/Photo image while transacting Display Customers Balance, Transactions, Statements online Automatic Sweep in & out Locker Service Availability EBL 5 to 9 Extended Service Bill payment
o Utility Services Bill o Tuition Fees o Mobile Phone Bills
Versatile Products availability Fast Cash Fast Loan Auto Loan Consumer Loans High Performance Account Savings Insurance Account Monthly Income Plan Monthly Deposit Plan
EBL Internet banking application addresses the needs of small, individual and corporate account holders of the bank. This application provides a comprehensive range of banking services that enable the customer to meet most of their banking requirements over the Net.
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BIBLIOGRAPHYBIBLIOGRAPHY
1. “Financial Management” by P K Jain
2. “Financial Management” by Van Horn
3. “Basics in Report Writing” by Leisikar
4. www.ebl.com.bd
5. Annual Report- Eastern Bank Limited, 2004
6. Annual Report- Eastern Bank Limited, 2005
7. Annual Report- Eastern Bank Limited, 2006
8. Hemple & Johansson, “Bank Management”, fifth edition
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