classification of bank (Bangladesh)

1. Classification Of Bank
Group (K) :
1

2. Name: Asfia Tabassum Kabbo
Student ID: (36207)
Topic: Schedule Bank
2

3. Classification Of Bank
A bank is an institution, usually incorporated with power to issue it’s promissory notes intended to
circulate money or to joint fund that shall be used by the institution.
Role of Bank –
1. Collection of the savings of the community.
2. Loans and investment.
3. Creation of money and capital formation.
4. Help in building the infrastructure
5. Aid to global trade
The banking sector in Bangladesh consists of several types of institutions. Bangladesh Bank is the central bank of
Bangladesh and the chief regulatory authority in the banking sector.
3

4. After the independence of Bangladesh, Banking industry started it’s journey with
6 nationalized banks, 3 State owned specialized Bank and 9 Foreign Banks.
In 1980, banking industries achieved significant expansion with the entrance of
private banks.
Now banks in Bangladesh are primarily of two types:
1. Scheduled banks .
2. Non - scheduled banks.
Classification Of Bank
4

5. Scheduled banks
Scheduled banks :
Scheduled banks are licenced under the Banks company Act, 1991.
There are 61 scheduled banks in Bangladesh, who operate under full control and
supervision of Bangladesh Bank which is empowered to do so through
Bangladesh Bank order (1972) and bank company Act (1991)
Scheduled banks are classified into 4 types :
1. State owned commercial banks. 3. Private commercial banks.
2. Specialized Banks. 4. Foreign commercial Banks
5

6. Name: Shaikh Sabbir Hossain
Student ID: (36209)
Topic: State-owned commercial banks in Bangladesh
6

7. What is actually State Own Commercial Bank?
State-owned commercial banks are banks that are owned and operated by the government of a country or
a state. They are often established to serve specific policy goals, such as promoting economic growth or
supporting certain industries.
7

8. 1. Ownership structure
Differ from other types of banks
Decision-making and operations are
often subject to political influence or
government priorities.
2. Goals or Mandate
Be tasked with providing financing to
key sectors of the economy, supporting
small businesses, or promoting rural
development.
3. Access to certain privileges or advantages
Receive favorable treatment from
regulators or have access to cheaper
sources of funding due to their
government ownership.
8

9. Bangladeshi Perspective
The first state-owned commercial bank in Bangladesh was the Agrani Bank, which was established
in 1972.Over time, the government of Bangladesh has established several other state-owned
commercial banks, including the Janata Bank, Rupali Bank, and Sonali Bank.
Bangladeshi Perspective
9

10. Role of State-owned commercial banks in
Bangladesh
1. Credit to small and medium-sized enterprises.
2. Funding for key infrastructure projects
In the early years of their existence, state-owned commercial banks in Bangladesh played an important role in
providing credit to small and medium-sized enterprises, as well as funding for key infrastructure projects.
However, over time, these banks faced a number of challenges, including high levels of non-performing loans, weak
corporate governance, and political interference in their operations.
10

11. Recent Scenario
So There are 6 state-owned commercial banks (SOCBs) that are fully or majorly owned by the Government of Bangladesh.
1. Agrani Bank Limited
2. Bangladesh Development
Bank Limited
3. BASIC Bank Limited
4. Janata Bank Limited
5. Rupali Bank Limited
6. Sonali Bank Limited
11

12. Advantages and disadvantages
Benefits: Drawbacks
1. Political interference
2. Inefficiencies
3. Lack of accountability
4. Higher risk
1. Government support
2. Financial stability
3. Developmental role
4. National interest
These are just some of the benefits and drawbacks of state-owned commercial banks. The
specific advantages and disadvantages may vary depending on the country, the bank, and the
political and economic context.
12

13. How state-owned commercial banks operate in
practice in Bangladesh
1. Lending:
State-owned commercial banks in
Bangladesh provide loans and credit
facilities to a range of clients.
2. Deposits
These banks accept deposits from
individuals and businesses, including
savings accounts, fixed deposits, and
other types of accounts.
This is especially important for
promoting financial inclusion and
providing access to banking services to
underserved communities.
3. Branch network
13

14. How state-owned commercial banks operate in
practice in Bangladesh
4. Government support
State-owned commercial banks in
Bangladesh have access to government
support, which can help them maintain
financial stability and protect depositors
in times of crisis.
1. High levels of non-performing loans,
2. political interference in their
operations,
3. potential inefficiencies due to
bureaucratic processes.
5. Challenges
14

15. Performance of state-owned commercial banks
in Bangladesh
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
State Own
Commertial
Bank
Commertial
Bank
Financial stability
0.00%
0.50%
1.00%
1.50%
2.00%
State Own
Commertial
Bank
Private
Commertial
Bank
Profitability
Return on Assets (ROA)
Lower profitability compared to private
commercial banks.
This has resulted in lower capital adequacy ratios
and higher provisioning requirements, which can
negatively impact financial stability.
Overall, the performance of state-owned commercial banks in Bangladesh is mixed. While these banks have made significant
contributions to the development of the country, they face challenges in maintaining financial stability and profitability. There is
a need for continued reform and modernization of these banks to ensure their long-term viability and contribution to the
economy.
0.00%
2.00%
4.00%
6.00%
8.00%
10.00%
12.00%
14.00%
State Own
Commertial
Bank
Commertial
Bank
Financial stability
0.00%
0.50%
1.00%
1.50%
2.00%
State Own
Commertial
Bank
Private
Commertial
Bank
Profitability
Return on Assets (ROA)
15
Source
internet:
2020

16. Name: Md Arafat Alam
Student ID: (2010736205)
Topic: Specialized Bank
16

17. Specialized Bank
Specialized Bank
Specialized Banks are those banks which were established for
specific objectives like agriculture or industrial development. These
banks are fully or majorly owned by the Government of
Bangladesh.
17

18. Specialized Bank
1. Bangladesh Krishi Bank
2. Rajshahi Krishi Unnayan Bank
3. Probashi Kallayan Bank
18

19. Specialized Bank
Bangladesh Krishi Bank (BKB)
The largest specialized bank of the country was established under the President
Order No. 27 of 1973 to finance climate-dependent uncertain and Risky agriculture
sector. It has 1038 online branches including 792 rural branches covering 50
districts and 9 City corporations.
Credit Programmes:
Crop Loans, Fisheries Loan, Live stock and Continuous Loan, Farm and Irrigation
Equipment Loan, Poverty Alleviation and MCP, Mujib Borsho Credit Scheme.
19

20. Specialized Bank
Rajshahi Krishi Unnayan Bank:
Established in 15th March 1987 for the intensive care to agriculture of
Rajshahi and Rangpur Administrative Division. There are 383 branches of
the bank among which 194 are in Rajshahi and 187 are in Rangpur. This is
the only specialized nationalized bank having its main branch outside of
Dhaka.
20

21. Specialized Bank
Probashi Kallayan Bank:
The bank started its journey on 20th April 2011. Since its inception, Pravasi
Kalyan Bank has provided migrant loans to nearly lakhs of expatriate
workers. The bank approves immigration loans in just 03 days and has also
provided employment assistance to a significant number of repatriated
workers by providing rehabilitation loans. Pravasi Kalyan Bank continues
its operations through 102 branches in various districts within the country.
21

22. Name: Nirmal Trudu
Student ID: 2010936212
Topic: Private Commercial Bank in Bangladesh
22

23. Private commercial banks are financial institution that
primarily owned and operated by high-net-worth Private
individuals and business organization. In Bangladesh Private
Bank are accelerate the economic growth and create new
business scope. It was launched under the Bangladesh Bank
act. Banking industry achieve a significant expansion with
the entrance of private banks in the 1980.
Private Commercial Bank in
Bangladesh
23

24. Private Commercial Bank in
Bangladesh
There is a total of 43 private commertial banks in operation now and
Classified into two types:
1. Conventional Private Commercial Bank
There are 33 conventional PCBs that are now operating in the industry. They
perform the banking functions in conventional fashion. Which is conventional
banks offer lending facilities to their clients to fulfill their cash requirement on
the basis of loan contracts where the relationship between the bank and client is
that of lender and borrower respectively.
24

25. Private Commercial Bank in
Bangladesh
25
List of Conventional Private commercial Bank
in Bangladesh:
1.AB Bank Limited
2.Bangladesh Commerce Bank Limited
3.Bank Asia Limited
4.Bengal Commercial Bank
5.BRAC Bank Limited
6.Dhaka Bank Limited
7.Dutch-Bangla Bank Limited
8.Eastern Bank Limited
9.EXIM Bank Limited
10.IFIC Bank Limited
11.Jamuna 1Bank Ltd
12.Meghna Bank Limited
13.Mercantile Bank Limited
14.Midland Bank Limited
15.Modhumoti Bank Ltd.
16.Mutual Trust Bank Limited
17.National Bank Limited
18.National Credit & Commerce
Bank Ltd.
19.NRB Bank Limited.
20.NRB Commercial Bank
Limited.
21.One Bank Limited
22.Padma Bank Limited
23.Premier Bank Limited
24.Prime Bank Ltd
25.Pubali Bank Limited
26.South Bangla Agriculture &
Commerce Bank Limited
27.Southeast Bank Limited
28.Standard Bank Limited
29.The City Bank Ltd.
30.Trust Bank Limited.
31.Union Bank Limited.
32.United Commercial
Bank Limited.
33.Uttara Bank
Limited.

26. Private Commercial Bank in
Bangladesh
2. Islami Shariah based Private commercial bank:
That Bank executes banking activities, according to Islami Shariah-based
principles. This type of banks invest their deposit in shariah-compliant
instrument to generate profit, which can be further invested in a cyclist
fashion. The profits or losses are shared by the bank and its depositor.
There are 10 Islami Shariah-based PCBs in Bangladesh.
26

27. Private Commercial Bank in
Bangladesh
27
List of Islami Shariah based private commercial bank
1.Al-Arafah Islami Bank Limited
2.EXIM Bank Limited
3.First Security Islami Bank Limited
4.Global Islamic Bank Limited
5.ICB Islamic Bank Limited
6.Islami Bank Bangladesh Limited
7.Shahjalal Islami Bank Limited
8.Social Islami Bank Limited
9.Union Bank Limited
10.Standard Bank Limited

28. Name: MD Mizanur Mia
Student ID: (36211)
Topic: Conventional Private Commercial Bank PCBs:
28

29. Conventional Commercial Bank PCBs:
Conventional Private Commercial Bank PCBs:
33 conventional PCBs are now operating in the industry. They perform the
banking functions in conventional fashion i.e interest based operations. The
motive of conventional private commercial banks in Bangladesh is to
maximize their profits by providing financial services to individuals and
businesses. They earn revenue through various means such as interest on
loans, fees and commissions, income from investments, and foreign
exchange operations.
29

30. Conventional Commercial Bank PCBs:
Function of conventional PCBs:
1. Acceptance of deposits.
2. Advancing loans and advances.
3. Payment services
4. Foreign exchange services.
5. Investment services.
6. Issuance of credit and debit cards.
7. Safe deposit boxes.
8. Financial advisory services.
30

31. Conventional Commercial Bank PCBs:
• List of Conventional PCBs:
•
AB Bank Limited
• Bangladesh Commerce Bank
Limited
• Bank Asia Limited
• BRAC Bank Limited
• Citizens Bank PLC
• City Bank Limited
• Community Bank Bangladesh
Limited
• Dhaka Bank Limited
• Dutch-Bangla Bank Limited
• Eastern Bank Limited
• IFIC Bank Limited
• Jamuna Bank Limited
• Meghna Bank Limited
• Mercantile Bank Limited
• Midland Bank Limited
• Modhumoti Bank Limited
• Mutual Trust Bank Limited
• National Bank Limited
• National Credit & Commerce
Bank Limited
• NRB Bank Limited
• NRB Commercial Bank Ltd
• One Bank Limited Padma Bank
Limited
• Premier Bank Limited
• Prime Bank Limited
• Pubali Bank Limited
• Shimanto Bank Ltd
• Southeast Bank Limited
• South Bangla Agriculture and
Commerce Bank Limited
• Trust Bank Limited
• United Commercial Bank Ltd
• Uttara Bank Limited
• Bengal Commercial Bank Ltd
31

32. Name: MD. Sajeeb Sarder
Student ID: 2011136208
Topic: Islami Shariah Based Private Commercial Bank (PCB)
32

33. What is mean by islami shariah bank?
Islami shariah banking is a different type of banking
system. This system is based on Quranic Norms and
Sunnah. It encourages the value of justice, efficiency,
stability and growth. Islami banks always search for
productive and profitable projects.
33

34. •In Bangladesh Bank data, the total
Islami banking deposits soared to TK
4,21,375 crore at the end September
2022 from TK 1,57,492 crore in 2015.
And the total bank deposite stood at
26.8% in September 2022.
34

35. Different types of Islami
Shariah Based PCBs:
There are 10 islami shariah based private
commercial banks. And they execute
banking activities according to islami
shariah-based principles.
35

36. (1)Islami Bank Bangladesh Limited(IBBL)
It is the largest commercial bank of Bangladesh and
it is the first shariah-based islami bank in South East
Asia. It has 36.91% native shareholders and
63.09% foreign shareholders.
(2)Exim Bank Ltd (EBL):
Export-Import bank of Bangladesh limited also
known as EXIM bank. It was the first bank that
converted its banking system from commercial to
shariah based islami banking.
36

37. (3)Al-Arafah Islami Bank Ltd (AAIBL):
It has a microfinance project named Krishi O
Grameen Khudra Biniog Prokolpa. Using this
projects they are helping in the reduction of poverty,
development in agricultural sectors etc.
(4)First Security Islami Bank Ltd (FSIBL): The
authorized capital and paid up capital of this
institution are respectively TK 10,000 Million and TK
7,840.99 Million.
37

38. (5)Social Islami Bank Ltd (SIBL):
SIBL was formerly known as social investment
bank limited. It was a public limited company.
(6)Shahjalal Islami Bank Ltd (SJIBL):
SJIBL is a public limited company incorporated in
Bangladesh. It’s under the companies Act 1994 and
listed in DSE & CSE.
38

39. (7)Union Bank Ltd (UBL):
The bank is one of the shariah based interest-free
banks in the country. Its aim is to become a socially
committed world class financial institution. It is a
fourth-generation bank in this rigion.
(8)ICB Islami Bank (ICBIB):
It’s mode of operation differs significantly from that
of other banks.
39

40. (9)Standard Bank Ltd (SBL):
SBL has introduced several new products for loan and
deposite systems. The bank has also participated in the
syndication of funds with other banks. And positive
impact of the market.
(10)Global Islami Bank (GIB):
GIB is the fourth-generation bank. In June Bangladesh
Bank accepted the bank’s proposal to raise 42.5 Billion
TK from an Initial Public Offering (IPO).
40

41. Total investment loans and advances under islami
banking reached TK 3,86,221 crore at the end of
September 2022 from TK 1,35,061 crore at the end
of September 2015.
At last, 10 full-fledge Islami banks are operating in
Bangladesh with 1,605 branches out of the total
10,974 bank branches.
41

42. Name: Sahead ibn kamal
Student ID: (36202)
Topic: Foreign commercial banks in Bangladesh :
42

43. Foreign commercial banks in Bangladesh
Foreign commercial banks in Bangladesh :
The main purpose of foreign commercial banks in Bangladesh
is to provide banking services to individuals and businesses, as
well as to help facilitate foreign investment and trade.
43

44. Foreign commercial banks in Bangladesh
There are nine foreign commercial banks operating in
Bangladesh are:
1. Citibank,
2. Standard Chartered Bank,
3. HSBC,
4. Commercial Bank of Ceylon,
5. State Bank of India,
6. Habib Bank Limited,
7. National Bank of Pakistan,
8. Woori Bank,
9. and Bank Alfalah.
44

45. Foreign commercial banks in Bangladesh
Advantages and disadvantages :
Advantage
• providing access to international financial markets
• promoting foreign investment and trade. they also have some
disadvantages,
• potentially crowding out local banks,
• being less responsive to local needs and conditions,
• being more likely to engage in risky lending practices.
45

46. Foreign commercial banks in Bangladesh
Why FCB's important for a country like bangladesh?
• They can bring in foreign investment, which can help boost
the economy
• They can provide access to international financial markets
• They can introduce new technologies abd financial products
to Bangldesh
• Also can help to improve financial inclusion.
46

47. Name: Ashikur Rahman
Student ID: 1910736216
Topic: Non-scheduled banks
47

48. Non-scheduled banks
Non-scheduled banks:
Non-scheduled banks are licensed only for specific functions and
objectives, and do not offer the same range of services as
scheduled banks.
These banks are established for special and definite objective and operate
under the acts that are enacted for meeting up those objectives. These banks
cannot perform all functions of scheduled banks. At present there are 5 Non-
Scheduled banks operating in Bangladesh.
48

49. Non-scheduled banks
Ansar-VDP Unnayan Bank:
This bank was established in 1995 through an act of parliament.
This is a specialized government owned bank in Bangladesh. The
bank was founded to provide financial services to the
paramilitary Bangladesh Ansar and Village Defense Party. The
bank has 259 branches across the country under 18 regions
49

50. Non-scheduled banks
Grameen Bank:
Grameen Bank originated in October 1983 by Professor
Muhammad Yunus. This is a microfinance organisation and
community development bank founded in Bangladesh. It
makes small loans to the impoverished without requiring
collateral.
50

51. Non-scheduled banks
Grameen Bank:
Grameen Bank originated in October 1983 by Professor
Muhammad Yunus. This is a microfinance organisation
and community development bank founded in
Bangladesh. It makes small loans to the impoverished
without requiring collateral.
51

52. Non-scheduled banks
Karmasangsthan Bank:
Karmasangsthan Bank is a specialised government owned bank
in Bangladesh. The bank was founded to finance the
unemployed to set up small enterprises.
The bank was founded in 1998 by the Awami
League government, with an approved capital of 3 billion taka.
The bank was founded to increase income of people in rural
areas of Bangladesh.
52

53. Non-scheduled banks
Palli Sanchay Bank:
Palli Sanchay Bank Rural Savings Bank, is a state owned bank in
Bangladesh. On 2 July 2014, the Government of Bangladesh passed
the Palli Sanchay Act 2014 to form the Palli Sanchay Bank. The bank
was modeled after Grameen Bank.
Jubilee Bank:
Jubilee Banks is one of the oldest commercial banks in Bangladesh.
It is a non-scheduled bank, one of six in Bangladesh.
53

54. Name: Sarhan Jamila
Student ID: (36203)
Topic: Non Bank Financial Institutions (NBFIs):
54

55. Non Bank Financial Institutions (NBFIs):
Non Bank Financial Institutions (NBFIs):
Non Bank Financial institutions which are regulated under Financial Institution
Act 1993 and controlled by Bangladesh Bank.
NBFIs conduct thier business operation modes
such as ;
• Syndicated financing,
• Bridge financing,lease financing,
• Securitization instrument,
• Private placement of equity etc.
55

56. 1. Agrani SME Finance Company Ltd.
2. Bangladesh Finance & Investment Co.Ltd
3. Bangladesh Industrial Finance Co.Ltd
4. Bangladesh Infrastructure Finance Fund Ltd.
5. .Bay Leasing & Investment Ltd.
6. Delta Brac Housing Finance Corporation Ltd.
7. Fareast Finance & Ltd.
8. FAS Finance & Investment Ltd.
9. First Finance Ltd.
10. GSP Finance Company (Bangladesh)Ltd.
11. Hajj Finance Company Ltd.
12. IDLC Finance Ltd.
13. Industrial & Infrastructure Development Finance co.
14. Infrastructure Development Company Ltd.
15. International Leasing & Financial Services Ltd.
Non Bank Financial Institutions (NBFIs):
16.Investment Corporation Of Bangladesh Ltd.
17.IPDC Finance Ltd.
18.Islamic Finance & Investment Ltd.
19.LankaBangla Finance Ltd.
20. Midas Financing Ltd.
21. National Housing Finance & Investment Ltd.
22.People Leasing Financial Services Ltd.
23.Phoenix Finance & Investment Ltd.
24.Premier Leasing & Finance Ltd.
25.Prime finance & Investment Ltd.
26.Reliance Finance Ltd.
27.SABINCO.
28.Union Capital Ltd.
29. United Finance Ltd.
30.Uttara Finance & Investment Ltd.
List of Non Bank Financial Institutions :
56

57. 57
Non Bank
Financial Institutions
(NBFIs):
1
3
4
2

58. Non Bank Financial Institutions (NBFIs):
The major differences between Banks & NBFIs
are:
1. FIs cannot issue cheques,pay-orders or demand
drafts.
2. FIs cannot receive demand deposits.
3. FIs cannot be involved foreign cxchange financing.
58

59. Non Bank Financial Institutions (NBFIs):
Facilities of Non Bank Financial Institutions in
Bangladesh :
1.Instant services
2.Such as individual ( both collective & individual)
3. Risk pooling,
4.Financial consulting,
5.Brokering money, transmission & check cashing.
59

60. Non Bank Financial Institutions (NBFIs):
Facilities of Non Bank Financial Institutions in Bangladesh :
1.Instant services
2.Such as individual ( both collective & individual)
3. Risk pooling,
4.Financial consulting,
5.Brokering money, transmission & check cashing.
60

61. Non Bank Financial Institutions (NBFIs):
Types of Non Bank Financial Institutions in
Bangladesh :
1.Venture capitalist,
2.Currency exchanges,
3.Insurance firms,
4.Microloan organizations.
61

62. Name: Jannatun Naher Momo
Student ID: 2012136201
Topic: Specialized financial institutions
62

63. SPECIALIZED FINANCIAL INSTITUTIONS
In accordance with the general terms, specialized
financial institutions means those specific financial
institutional sectors of a country that have been
established by the specific laws of the government.
63

64. The main feature of the specialised financial institute is to offer
a high rate of return to those kinds of customers who have
already invested in the industrial development of the country.
The structure of these institutes and the way this financial
institute work is very complex. Therefore, as a
disadvantage, the time that the whole process consumes
to work can be discussed.
64

65. BANGLADESH HOUSE BUILDING
FINANCE CORPORATION
Bangladesh House Building Finance
Corporation (BHBFC) is a specialized public
financial institution that finances the
construction and renovation of houses and
purchasing residential apartments in all over
Bangladesh
65

66. PALLI KARMA SAHAYAK
FOUNDATION
Palli Karma Sahayak Foundation or PKSF is a
financial institution founded by the
Government of Bangladesh to finance rural
development and provide training and is
located in Dhaka, Bangladesh. It offers
financial and non-financial services to the
rural people in Bangladesh.
66

67. 67