Competitive advantage By Bangladesh Commerce Bank Ltd

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Bangladesh Commerce Bank Ltd incorporated in Bangladesh on 1 June 1998 as a banking company, it started banking operations on 16 September 1999 with an authorized and paid up capital of Tk 2,000 million and Tk 920 million respectively.

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Competitive advantage By Bangladesh Commerce Bank Ltd

  1. 1. Internship Report On Investment policies and analysis of competitive advantage By Bangladesh Commerce Bank Ltd www.AssignmentPoint.com
  2. 2. Letter of Transmittal October 03,2009 Al Mahmud Senior Lecturer Department of Business Administration Subject: Submission of the “Internship report”. Dear Sir, With due respect, I, Shib Shankar Gope student of BBA, 17th batch have great pleasure to submit my “Internship Report” under your supervision. In preparing the report I faced inconvenience relating to collection of pertinent information. I respectfully acknowledge your guidance, leadership and helping for preparation of this paper. It is worthwhile to mention that there might be some errors and mistakes in my report due to limited knowledge. I am still at learning stage. So I respect that you will pardon my unintentional mistakes in preparing this paper. Sincerely Yours, ………. www.AssignmentPoint.com
  3. 3. Declaration I’ m student of Business Administration Department (BBA program) major in Banking and Finance of Dhaka International University. I hereby declare that the internship report on “Investment policies and analysis of competitive advantage by Bangladesh Commerce Bank Ltd.” which I have not submitted for any other degree before. Department of Business Administration. www.AssignmentPoint.com
  4. 4. Preface This report is the outcome of the internship program under the Bachelor of Business Administration (BBA) course of the Department of Business Administration. During the period of three months the objectives of the program was to theoretical aspects of the practical life. Hence the internship program works as the link between the theory & practical. It is my pleasure to submit my internship titled “Investment policies and analysis of competitive advantage by BCBL” during 15th May to 15th August. While preparing this report, I have tried together as much information as possible & to gather all the information pertain the report to enrich it. I believe that it was a fascinating experience to work in the banking sector and it has enriched both my knowledge and experience. This report is not free from limitations. There might have problems regarding luck and limitations in some aspects. ……… www.AssignmentPoint.com
  5. 5. Acknowledgement I have much pleasure and kindness of the Almighty God, the supreme of the earth, for giving me the ability to work hard successfully. Words will never be enough to express how grateful I am but nevertheless I will try my best level to express my gratefulness towards some people. To this regard I would like to take the opportunity to express my gratitude to my faculty supervisor, Al Mahmud , Senior lecturer, Department of Business Administration. His suggestions and comments to make the report a good one was really a great source of sprit for me. A single individual can achieve no noble objectives. I am indebted to a number of persons for their kind advice, suggestions, directions & co-operations which have, enable me to have an experience in the dynamic environment of the banking sectors & ultimately to prepare this report. I like to thank from the core of my heart to Md. Atiur Rahman, Br. Manager, 2nd manager Abu Taher chawdhary & loan division, Mahmud Hassan by Bangladesh Commerce Bank Ltd. for their co-operation and kind help. I would also like to gratefully acknowledge co-operation of all the stuff members of zigatola Branch, Bangladesh Commerce Bank Limited. It would not have been possible for me to complete this study, successfully without their help. www.AssignmentPoint.com
  6. 6. Executive Summary This report is prepared as a partial requirement of BBA program of the Department of Business Administration. It is prepared on performance evaluation through product and service of Bangladesh Commerce Bank Limited. Operation provided By Bangladesh Commerce Bank Ltd., zigatola Branch and guided by internship supervisor Al Mahmud , senior Lecturer of Department of Business Administration. The Performance Evaluation of Bangladesh Commerce Bank Limited in this report, I am just trying to analyze how they can perform in their banking system. Financial soundness of any financial institution is the prime concern for its survival in the competitive & changing business environment. This is the most important in case of the banking institution. In this study “Investment policies and analysis of competitive advantage by Bangladesh Commerce Bank Ltd.” has been described. www.AssignmentPoint.com
  7. 7. www.AssignmentPoint.com
  8. 8. Abbreviation A/C Account CCI and E Chief controller of import & export DD Demand Draft TT Telegraphic Transfer FC Foreign Currency FDR Fixed Deposit Receipt FER Foreign Exchange Reserve IMP Import IRC Import Registration Certificate ERC Export Registration Certificate L/C Letter of credit LIM Loan Against Import Merchandise LTR Loan Against Trust Receipt PAD Payment Against Document PO Payment Order STD Short Term Deposit TIN Tax Identification number VAT Value added tax SWIFT Society for Worldwide Inter bank Financial Telecommunication. IBC Inter Branch Clearing OBC Outside Bank Clearing SOD Security Over Draft PC Packing Credit ABP Accepted bills payable EDF Export Development Fund www.AssignmentPoint.com
  9. 9. Table of Content Chapter Contents Page Chapter – 1 Introduction 1 1.1. Introduction of the report 2 1.2. Objectives of the Study 2 1.3. Scope of the Study 3 1.4. Methodology 3 1.5. Limitations 4 Chapter - 2 Bangladesh Commerce Bank Limited 5 2.1. Historical Background of BCBL 8 2.2. Objectives and Targets 8 Chapter - 3 Product & Services of BCBL 9 3.1. Product & Services: Deposit product 10 3.2. The rates of interest are given 10 www.AssignmentPoint.com
  10. 10. below 3.3. Special Savings Scheme 10 3.4. The Attractive Savings Schemes of 10 BCBL 3.5. Product & Services: Loan & 21 advances 3.6. Product & Services: Services 3.7. Various services of BCBL Charges 24 3.8. Hierarchy of position in BCBL Chapter - 4 24 26 Investment policy 27 4.1. Investment policy of the Bank with 28 Financial overview 4.2. Bank’s Performance at Glance Chapter - 5 Product Services Banks 33 & Rival 34 5.1. Deposit Products: Standard Bank 35 Ltd. 5.2. (DI+) Double Income Plus 36 5.3. LSDIP- Life Secured Double Income 37 Program www.AssignmentPoint.com
  11. 11. 5.4. Revised Rate of Interest 38 5.5. Loan Products: Standard Bank Ltd. 38 5.6. Mood of Finance that we provide 40 5.7. Retail Products: Standard Bank 40 Ltd. 5.8. Price: Loan 44 5.9. Services: Standard Bank Ltd. 44 5.10. Deposit Products: Prime Bank 46 Ltd. 5.11. Loan Products: Prime Bank Ltd. 56 5.12. Consumer Credit Products 60 5.13. Hire Purchase 60 5.14. Advance against Share 61 5.15. Interest Rate: Prime Bank Limited 62 5.16. Services: Prime Bank Ltd. Chapter – 6 Comparative Scenario 62 64 With 6.1 Interest Rate Competitive Bank 65 6.2 Product & Services 67 6.3 Opportunity should pick up by 67 BCBL Chapter – 7 Future Prospect, Recommendation 69 And 7.1 Future Prospect www.AssignmentPoint.com 70
  12. 12. Conclusion 7.2 Recommendation 70 7.3 Conclusion 71 7.4 Reference 72 www.AssignmentPoint.com
  13. 13. Chapter-1 Introduction 1.1 Introduction of the report The internship program is full credit subject of the BBA program of the Stamford University Bangladesh, Which constructs a relation between the real life state of affairs and theoretical concepts. www.AssignmentPoint.com
  14. 14. As a student of Business Administration of BBA program I prefer to prepare a report on banking sector rather than other product and service. This internship report of my BBA program that performed by me as a student of Stamford University Bangladesh, Department of Business Administration. In a way I select the banking sector and my supervisor Md. Gulam Sharoar Hossain offered me prepare the report on title as “Investment policies and analysis of competitive advantage by Bangladesh Commerce Bank Ltd”. 1.2 Objectives of the report Objectives The objective of the analysis is to evaluate the procedure of “Investment policy and product & Service” of Bank Asia Limited. There are also many objectives. The primary objective of this report is to comply with the requirement of the Bangladesh Commerce Bank Limited. But the objective behind this study is something broader. Objectives of study are summarized in the following manner: o To evaluate product & Service procedures. o To evaluate the performance of the bank. o To apply theoretical knowledge in the practical field. o To make bridge between the theories and practical procedures of banking day-to-day operations. o To gain practical knowledge by working in different desks of zigatola branch office of Bangladesh Commerce Bank Ltd. o To observe the working environment in commercial banks. o To study existing banker-customer relationship. o To know the overall functioning of Bangladesh Commerce Bank Limited. o To have some practical exposures that will be helpful for my future career. Specific Objectives  To submit a report, for the fulfillment of my BBA program. www.AssignmentPoint.com
  15. 15.  Is to find out the “Investment policy and analysis of competitive advantage by Bangladesh Commerce Bank Ltd.” Broad Objectives  Together comprehensive knowledge on total banking functions.  To identify the factors contributing to the attractive & operative performance of the local branch of the bank.  To make a study of the facts in order to arrive at certain conclusion about product & Service system.  Critically analyze the functions and the operations of each level of the organization of Bangladesh Commerce Bank Limited. 1.3. Scope of the report Scope of this assignment was very confined concentrate only on the generalization banking system of Bangladesh Commerce Bank Limited development of capital market of Bangladesh. Besides this, for evaluating the performance I kept my thinking on general banking, loan and advances, product & Service. 1.4. Methodology of the report www.AssignmentPoint.com
  16. 16. This report has been prepared on the basis of experience gathered during the period of Internship from May 15, 2009 to August 15, 2009. For preparing this report, I have undergone group discussion, collected data and sent some questionnaires to the selected Officers and interviewed with some of them. I also studied different circulars and files of the bank. I hope these criteria will be enough to find out different picture of product & Service procedure and financial performance of the selected Bangladesh Commerce Bank Ltd. Sources of Data In order to make the report more meaningful and presentable, two sources of data and information have been used widely. The “Primary Sources” of Data are as follows:  Face-to-face conversation with the respective officers and staffs of the Branch.  Informal conversation with the clients.  Practical work exposures from the different desks of the departments of the Branch covered.  Relevant file study as provided by the officers concerned. The “Secondary Source” of Data and Information are:  Annual Report of Bangladesh Commerce Bank Ltd.  Various Books, articles, compilations etc. regarding general banking functions, and product & Service.  Different Procedure Manual published by Bank. 1.5. Limitation of the report www.AssignmentPoint.com
  17. 17. There are some limitations in every analysis. I have also faced some problems at the time analyzing the performance of the bank. The limitations of my analysis are given below: i. Time is limited (3 month) ii. Insufficiency of information. iii. The bank personnel are very busy. iv. It was very difficult to collect the information from various personnel for their job constraint. v. As some of the fields of banking are still not covered by our courses, there was difficulty in understanding some activities. vi. Another limitation of this report is Bank’s policy of not disclosing some data and information for obvious reason, which could very much useful. vii. I carried out such a study for the first time, so inexperience is one of the main constraints or the study. www.AssignmentPoint.com
  18. 18. Capter-2 Bangladesh Commerce Bank Limited 2.1 Historical Background of BCBL www.AssignmentPoint.com
  19. 19. Bangladesh Commerce Bank Ltd incorporated in Bangladesh on 1 June 1998 as a banking company, it started banking operations on 16 September 1999 with an authorized and paid up capital of Tk 2,000 million and Tk 920 million respectively. The share of the government of Bangladesh in the bank's paid up capital is Tk 300 million while depositors of the former Bangladesh Commerce and Investment Limited (BCIL) contributed Tk 520 million. The balance of Tk 100 million is to be subscribed by banks and financial institutions under guidance and supervision by Bangladesh bank. The former BCIL was set up on 27 January 1986 as a non-bank financial institution. It continued its business till April 1992. Consequent upon its liquidity crisis, Bangladesh Bank suspended its operations in April 1992. As a result, the investors of the company suffered a lot and its employees became jobless. Both the depositors and the jobless employees launched a movement for reopening the company in some form or other and demanded return of their money and dues. With a view to safeguarding the interest of the depositors, employees and the general public, and to protecting the banking system itself from contagious effects of bank failures, the government of Bangladesh established the Bangladesh Commerce Bank on the ashes of the collapsed BCIL. Subsequently, the government on 8 February 1998 constituted a 10-member board of directors to organize and transform BCIL into BCBL and to administer the affairs of the bank. The 24 branches of BCIL were reopened as full-fledged branches of BCBL. The broad objective of the bank is to carry out all kinds of commercial banking activities and to respond quickly to the changing demands for modern banking products. www.AssignmentPoint.com
  20. 20. In its three months of operations in 1999 starting on 16 September and ending on 31 December, BCBL had mobilized deposits of Tk 83 million. To augment its deposit collection further, BCBL introduced a number of deposit schemes suited to the needs of all classes of people in society. These schemes include a) Monthly Profit Based Deposit Scheme, b) Pension Saving Scheme, c) Interest Free Deposit and Loan Scheme, d) Consumers' Credit Scheme, and e) Money Plantation Against Saving Certificates. It has also offered competitive rates of interest on its deposit holdings, which varied between 7.75% and 12% since the inception of its operations through May 2000. Total deposits stood at Tk 1,294.2 million on 31 December 2000, when its gross loans and advances amounted to Tk 1,311 million. The first priority of the bank in 1999 and 2000 was the recovery of the past loans of the BCIL. It has managed to recover Tk 523.3 million in cash and Tk 1,788 million by adjustment against past liabilities. The bank is overburdened with the liabilities and the non-performing classified loans of BCIL. The bank also suffered losses in the years 1999 and 2000 and was not able to maintain necessary provisions for classified loans. Investment of the bank has increased from Tk 20 million in 1999 to Tk 95 million in 2000, mainly in government treasury bills. Because of the huge stuck up loans inherited from the BCIL, the bank's creditdeposit ratio stood at 101.30%. Total assets of BCBL, including the Tk 1,423.99 million of former BCIL stood at Tk 3,763.7 million on 31 December 2000. The bank's off-balance-sheet reserve was only Tk 95.8 million, a figure which has contributed little to the increase of its asset-mix. In 2000, BCBL maintained liquid assets of Tk 1,052.6, a sum hardly sufficient to meet its accumulated short-term/current obligations. On the other hand, statutory liquid assets of the bank were 15.08% in 2000, which is below the www.AssignmentPoint.com
  21. 21. 20% SLR requirement envisaged by Bangladesh Bank. Because BCBL had absorbed huge amount of liabilities and non-performing assets of BCIL, it was not possible for the bank to make net profits during the short period of its existence in the new set-up. The bank is managed by a 9-member board of directors appointed by the government. A total of 590 officers and other staff work in the head office and the 24 branches of the bank. It has inherited a training institute from BCIL. This institute is being reorganized to provide training to its employees in modern banking services. 2.2 Objectives and Targets 1. Offering maximum services to the clients and shareholders as per rules. 2. Providing services by diversification to the door step of people in the economic sector. 3. Ensuring maximum utilization of professional manpower by developing skill & creativeness. 4. Creating savings attitude among various classes of people. 5. Increasing investment for keeping the market economy operative. 6. Earning confidence of all concerned by easing foreign trade and international transaction. 7. Assessment of consumer need and provide short term and long term finance on the basis of real need. 8. Proper maintenance of Bank’s resources through appropriate investment and active participation of various welfare programs of the country. 9. Activate capital market by more participation in the capital market. 10. Involves customers with modern banking through proper usage of modern information technology. www.AssignmentPoint.com
  22. 22. 11. Providing best services to the customers to establishing firm discipline in Bank management and building long term relation. 12. Achievement of economic growth through various socio-economic activities. 13. Building image of the Bank home and abroad. Upgrading socio-economic aspects of Bangladesh financing Agro-based Prakalpa. www.AssignmentPoint.com
  23. 23. Capter-3 Product & Services of BCBL 3.1 Product & Services: Deposit Product A savings account at BCBL will provide you with healthy returns on your savings www.AssignmentPoint.com
  24. 24. at the same time as you help support projects bringing lasting benefits to communities and the environment. Our range of personal savings accounts has been designed to offer something for everyone. So whether you want to invest a lump sum, put by a little every month or you simply want to move your savings to a bank with a uniquely ethical approach, there is a BCBL savings account to suit your needs. 3.2 The rates of interest are given below STD Savings FDR Account Account One Two month months 5.00% 6.00% 9.00 9.50% % Three months 13.00 % Six months 12.50 % One year 13.00% 3.3 Special Savings Scheme Under the special savings scheme against regular deposit of particular amount per month a substantial amount after 5/8/10/12/15 & 20 years will be given. This scheme is popularly known as Deposit Pension Scheme 3.4 The Attractive Savings Schemes of BCBL are 3.4.1 Lakhopati Scheme (LDS) 3.4.2 Millionaire Scheme (MIDS) 3.4.3 Kotipati Scheme (KDS) 3.4.4 Marriage Scheme (MDS) 3.4.5 Sikha Sanchaya Scheme (ESS) 3.4.6 Double Benefit (DGDS) 3.4.7 Triple Benefit (TGDS) www.AssignmentPoint.com
  25. 25. 3.4.1 Lakhopati Scheme (LDS) 1. Under this Scheme the amount of Deposit is Tk. 1,260/- & Tk. 460/- gradually for period 5 (Five) & 10 (Ten) years. 2. Depending on maturity the return will be as followsLakhopati Scheme (LDS) Duration Monthly Deposit 5 (Five) Years 1260/- Tk 10 (Ten) Years 460/- Tk On Maturity 1,00,000/- Taka 1,00,000/- Taka 3. If Government Tax is imposed on earned income, depositors account will be debited to pay such Taxes. 4. Under this Scheme client could open any of above account. But after opening account the amount & maturity period could be changed. 5. The depositor must maintain a saving account with any of the brunches of BCBL. By paying a certain fee bank will automatically deposit the monthly deposit amount from the general saving account upon a special instruction of client. 6. Any Bangladeshi above 18 years of age can open this Account. A minor can also open this account by his/her own name. In this case his/her legal guardian will operate the account. 7. Client would receive the return after one month of depositing the last monthly payment. 8. Monthly payment have to deposited within 10 (Ten) of every calendar month (incase of holyday, next working day will be effective). Any number of advance “Deposit” will be accepted. 9. If the depositor wants to encash this ‘Deposit Receipt” prior to maturity, profit will be paid at normal saving rate. But profit will be given if such encashment is made before completion of 6 (Six) month. 10. If client fail to deposit within the prescribed time, he/she have to pay 5% of deposit amount or Tk. 25/- whichever is greater with the next deposit. www.AssignmentPoint.com
  26. 26. 11. Bank contains the right to close the account upon a failure to deposit three (3) consecutive “Deposit”. If a client fail to deposit three (3) consecutive “Monthly Deposit”, the account will be treated as ESS account and upon completion of 6 (Six) month, profit will be paid at normal saving rate. 12. After completion of 2 (Two) years, credit facility upto 80% may be availed against the deposit. In that case the client will be required to pay interest on the loan amount as determined by the Bank. This requires minimum Tk. 10,000/deposit on the account. 13. In the event of death of the depositor prior to maturity of principal with profit will be disbursed his/her nominee(s). in absence of nominee(s), lawful heir(s) may receive the above on submission of succession certificate. 14. No monthly transaction report will be provided on this account. But if needed a charge of Tk. 10/- would be charged for the monthly transaction report. 15. If Government Tax is imposed on earned income, depositors account will be debited to pay such Taxes. 16. Money laundering prevention act, shall be exercise as per rules of BB. 17. BCBL reserves the right to change/enhance the above terms & condition including revision of rate of interest. 18. Photograph of Nominee duly attested by the applicant is to be enclosed herewith. 3.4.2 Millionaire Scheme (MIDS) 1. Under this Scheme the amount of Deposit is Tk. 4600/- & Tk. 2170/- gradually for period 10 (Ten) years & 15 (Fifteen) Years. 2. Depending on maturity the return will be as followsMillionaire Scheme (MIDS) Duration Monthly Deposit 10 (Ten) Years 4,600/- Tk 15 (Fifteen) Years 2,170/- Tk On Maturity 10,00,000/- Taka 10,00,000/- Taka 3. If Government Tax is imposed on earned income, depositors account will be www.AssignmentPoint.com
  27. 27. debited to pay such Taxes. 4. Under this Scheme client could open any of above account. But after opening account the amount & maturity period could be changed. 5. The depositor must maintain a saving account with any of the brunches of BCBL. By paying a certain fee bank will automatically deposit the monthly deposit amount from the general saving account upon a special instruction of client. 6. Any Bangladeshi above 18 years of age can open this Account. A minor can also open this account by his/her own name. In this case his/her legal guardian will operate the account. 7. Client would receive the return after one month of depositing the last monthly payment. 8. Monthly payment have to deposited within 10 (Ten) of every calendar month (incase of holyday, next working day will be effective). Any number of advance “Deposit” will be accepted. 9. If the depositor wants to encash this ‘Deposit Receipt” prior to maturity, profit will be paid at normal saving rate. But profit will be given if such encashment is made before completion of 6 (Six) month. 10. If client fail to deposit within the prescribed time, he/she have to pay 5% of deposit amount or Tk. 25/- whichever is greater with the next deposit. 11. Bank contains the right to close the account upon a failure to deposit three (3) consecutive “Deposit”. If a client fail to deposit three (3) consecutive “Monthly Deposit”, the account will be treated as ESS account and upon completion of 6 (Six) month, profit will be paid at normal saving rate. 12. After completion of 2 (Two) years, credit facility upto 80% may be availed against the deposit. In that case the client will be required to pay interest on the loan amount as determined by the Bank. This requires minimum Tk. 50,000/deposit on the account. 13. In the event of death of the depositor prior to maturity of principal with profit will be disbursed his/her nominee(s). in absence of nominee(s), lawful heir(s) may receive the above on submission of succession certificate. 14. No monthly transaction report will be provided on this account. But if needed a www.AssignmentPoint.com
  28. 28. charge of Tk. 10/- would be charged for the monthly transaction report. 15. If Government Tax is imposed on earned income, depositors account will be debited to pay such Taxes. 16. Money laundering prevention act, shall be exercise as per rules of BB. 17. BCBL reserves the right to change/enhance the above terms & condition including revision of rate of interest. 18. Photograph of Nominee duly attested by the applicant is to be enclosed herewith. 3.4.3 Kotipati Scheme (KDS) 1. Under this Scheme the amount of Deposit is Tk. 21,950/- & Tk. 11,100/gradually for period 15 (Fifteen) Years & 20 (Twenty) Years. 2. Depending on maturity the return will be as followsKotipati Scheme (KDS) Duration Monthly Deposit 15 (Fifteen) Years 21,950/- Tk 20 (Twenty) Years 11,100/- Tk On Maturity 1,00,00,000/- Taka 1,00,00,000/- Taka 3. If Government Tax is imposed on earned income, depositors account will be debited to pay such Taxes. 4. Under this Scheme client could open any of above account. But after opening account the amount & maturity period could be changed. 5. The depositor must maintain a saving account with any of the brunches of BCBL. By paying a certain fee bank will automatically deposit the monthly deposit amount from the general saving account upon a special instruction of client. 6. Any Bangladeshi above 18 years of age can open this Account. A minor can also open this account by his/her own name. In this case his/her legal guardian will operate the account. 7. Client would receive the return after one month of depositing the last monthly payment. 8. Monthly payment have to deposited within 10 (Ten) of every calendar month www.AssignmentPoint.com
  29. 29. (incase of holyday, next working day will be effective). Any number of advance “Deposit” will be accepted. 9. If the depositor wants to encash this ‘Deposit Receipt” prior to maturity, profit will be paid at normal saving rate. But profit will be given if such encashment is made before completion of 6 (Six) month. 10. If client fail to deposit within the prescribed time, he/she have to pay 5% of deposit amount or Tk. 25/- whichever is greater with the next deposit. 11. Bank contains the right to close the account upon a failure to deposit three (3) consecutive “Deposit”. If a client fail to deposit three (3) consecutive “Monthly Deposit”, the account will be treated as ESS account and upon completion of 6 (Six) month, profit will be paid at normal saving rate. 12. After completion of 2 (Two) years, credit facility upto 80% may be availed against the deposit. In that case the client will be required to pay interest on the loan amount as determined by the Bank. This requires minimum Tk. 2,50,000/deposit on the account. 13. In the event of death of the depositor prior to maturity of principal with profit will be disbursed his/her nominee(s). in absence of nominee(s), lawful heir(s) may receive the above on submission of succession certificate. 14. No monthly transaction report will be provided on this account. But if needed a charge of Tk. 10/- would be charged for the monthly transaction report. 15. If Government Tax is imposed on earned income, depositors account will be debited to pay such Taxes. 16. Money laundering prevention act, shall be exercise as per rules of BB. 17. BCBL reserves the right to change/enhance the above terms & condition including revision of rate of interest. 18. Photograph of Nominee duly attested by the applicant is to be enclosed herewith. 3.4.4 Sikha Sanchaya Scheme (ESS) 1. Under this Scheme the amount of Deposit is Tk. 500/- for period 8 (Eight) & 12 www.AssignmentPoint.com
  30. 30. (Twelve) years. 2. Depending on maturity the return will be as follows- Sikha Sanchaya Scheme (ESS) Duration Monthly Deposit 8 (Eight) Years 500/- Tk 12 (Twelve) Years 500/- Tk On Maturity 76,500/- Taka 1,48,800/- Taka 3. If Government Tax is imposed on earned income, depositors account will be debited to pay such Taxes. 4. Under this Scheme client could open any of above account. But after opening account the amount & maturity period could be changed. 5. The depositor must maintain a saving account with any of the brunches of BCBL. By paying a certain fee bank will automatically deposit the monthly deposit amount from the general saving account upon a special instruction of client. 6. Any Bangladeshi above 18 years of age can open this Account. A minor can also open this account by his/her own name. In this case his/her legal guardian will operate the account. 7. Client would receive the return after one month of depositing the last monthly payment. 8. Monthly payment have to deposited within 10 (Ten) of every calendar month (incase of holyday, next working day will be effective). Any number of advance “Deposit” will be accepted. 9. If the depositor wants to encash this ‘Deposit Receipt” prior to maturity, profit will be paid at normal saving rate. But profit will be given if such encashment is made before completion of 6 (Six) month. 10. If client fail to deposit within the prescribed time, he/she have to pay 5% of deposit amount or Tk. 25/- whichever is greater with the next deposit. 11. Bank contains the right to close the account upon a failure to deposit three (3) consecutive “Deposit”. If a client fail to deposit three (3) consecutive “Monthly Deposit”, the account will be treated as ESS account and upon completion of 6 www.AssignmentPoint.com
  31. 31. (Six) month, profit will be paid at normal saving rate. 12. After completion of 2 (Two) years, credit facility upto 80% may be availed against the deposit. In that case the client will be required to pay interest on the loan amount as determined by the Bank. This requires minimum Tk. 10,000/deposit on the account. 13. In the event of death of the depositor prior to maturity of principal with profit will be disbursed his/her nominee(s). in absence of nominee(s), lawful heir(s) may receive the above on submission of succession certificate. 14. No monthly transaction report will be provided on this account. But if needed a charge of Tk. 10/- would be charged for the monthly transaction report. 15. If Government Tax is imposed on earned income, depositors account will be debited to pay such Taxes. 16. Money laundering prevention act, shall be exercise as per rules of BB. 17. BCBL reserves the right to change/enhance the above terms & condition including revision of rate of interest. 18. Photograph of Nominee duly attested by the applicant is to be enclosed herewith. 3.4.5 Marriage Scheme (MDS) 1. Under this Scheme the amount of Deposit is Tk. 1,000/- for period 12 (Twelve) years & 18 (Eighteen) years. 2. Depending on maturity the return will be as followsMarriage Scheme (MDS) Duration Monthly Deposit 15 (Fifteen) Years 1,000/- Tk 20 (Twenty) Years 1,000/- Tk On Maturity 2,97,600/- Taka 6,36,000/- Taka 3. If Government Tax is imposed on earned income, depositors account will be debited to pay such Taxes. 4. Under this Scheme client could open any of above account. But after opening account the amount & maturity period could be changed. www.AssignmentPoint.com
  32. 32. 5. The depositor must maintain a saving account with any of the brunches of BCBL. By paying a certain fee bank will automatically deposit the monthly deposit amount from the general saving account upon a special instruction of client. 6. Any Bangladeshi above 18 years of age can open this Account. A minor can also open this account by his/her own name. In this case his/her legal guardian will operate the account. 7. Client would receive the return after one month of depositing the last monthly payment. 8. Monthly payment have to deposited within 10 (Ten) of every calendar month (incase of holyday, next working day will be effective). Any number of advance “Deposit” will be accepted. 9. If the depositor wants to encash this ‘Deposit Receipt” prior to maturity, profit will be paid at normal saving rate. But profit will be given if such encashment is made before completion of 6 (Six) month. 10. If client fail to deposit within the prescribed time, he/she have to pay 5% of deposit amount or Tk. 25/- whichever is greater with the next deposit. 11. Bank contains the right to close the account upon a failure to deposit three (3) consecutive “Deposit”. If a client fail to deposit three (3) consecutive “Monthly Deposit”, the account will be treated as ESS account and upon completion of 6 (Six) month, profit will be paid at normal saving rate. 12. After completion of 4 (Four) years, credit facility upto 80% may be availed against the deposit. In that case the client will be required to pay interest on the loan amount as determined by the Bank. This requires minimum Tk. 50,000/deposit on the account. 13. In the event of death of the depositor prior to maturity of principal with profit will be disbursed his/her nominee(s). in absence of nominee(s), lawful heir(s) may receive the above on submission of succession certificate. 14. No monthly transaction report will be provided on this account. But if needed a charge of Tk. 10/- would be charged for the monthly transaction report. 15. If Government Tax is imposed on earned income, depositors account will be debited to pay such Taxes. www.AssignmentPoint.com
  33. 33. 16. Money laundering prevention act, shall be exercise as per rules of BB. 17. BCBL reserves the right to change/enhance the above terms & condition including revision of rate of interest. 18. Photograph of Nominee duly attested by the applicant is to be enclosed herewith. 3.4.6 Double Benefit (TGDS) 1. Minimum Tk. 5,000/- or any multiple of this amount may be deposited to open this DGDS A/C 2. This deposit shall be accepted only for the period of 6 (Six) years. The depositor must maintain a saving or current account with any of the brunches of BCBL. 3. “Deposit Receipt” will be issued to the customer while receiving deposit. 4. Any Bangladeshi above 18 years of age can open this Account. A minor can also open this account by his/her own name. In this case his/her legal guardian will operate the account. 5. If the depositor wants to encash this ‘Deposit Receipt” prior to maturity, profit will be paid at normal saving rate. But profit will be given if such encashment is made before completion of 6 (Six) month. 6. In the event of death of the depositor prior to maturity of principal with profit will be disbursed his/her nominee(s). in absence of nominee(s), lawful heir(s) may receive the above on submission of succession certificate. 7. Credit facility upto 80% may be availed against the deposit. In that case the client will be required to pay interest on the loan amount as determined by the Bank. 8. If the “Deposit Receipt” is lost prevailing terms/condition in force fro issuing a duplicate receipt for term deposit will be applicable for issuing a “Duplicate Receipt” 9. If Government Tax is imposed on earned income, depositors account will be debited to pay such Taxes. 10. Money laundering prevention act, shall be exercise as per rules of BB. 11. BCBL reserves the right to change/enhance the above terms & condition including revision of rate of interest. 12. Photograph of Nominee duly attested by the applicant is to be enclosed herewith. www.AssignmentPoint.com
  34. 34. 3.4.7 Triple Benefit (TGDS) 1. Minimum Tk. 5,000/- or any multiple of this amount may be deposited to open this TGDS A/C 2. This deposit shall be accepted only for the period of 9 (Nine) years 9 (Nine) months. The depositor must maintain a saving or current account with any of the brunches of BCBL. 3. “Deposit Receipt” will be issued to the customer while receiving deposit. 4. Any Bangladeshi above 18 years of age can open this Account. A minor can also open this account by his/her own name. In this case his/her legal guardian will operate the account. 5. If the depositor wants to encash this ‘Deposit Receipt” prior to maturity, profit will be paid at normal saving rate. But profit will be given if such encashment is made before completion of 6 (Six) month. 6. In the event of death of the depositor prior to maturity of principal with profit will be disbursed his/her nominee(s). in absence of nominee(s), lawful heir(s) may receive the above on submission of succession certificate. 7. Credit facility upto 80% may be availed against the deposit. In that case the client will be required to pay interest on the loan amount as determined by the Bank. 8. If the “Deposit Receipt” is lost prevailing terms/condition in force fro issuing a duplicate receipt for term deposit will be applicable for issuing a “Duplicate Receipt” 9. If Government Tax is imposed on earned income, depositors account will be debited to pay such Taxes. 10. Money laundering prevention act, shall be exercise as per rules of BB. 11. BCBL reserves the right to change/enhance the above terms & condition including revision of rate of interest. 12. Photograph of Nominee duly attested by the applicant is to be enclosed herewith. www.AssignmentPoint.com
  35. 35. 3.5 Product & Services: Loan & advances Like Deposit Scheme, BANGLADESH COMMERCE BANK LIMITED have formulated the following Loan Schemes 1. Financing of Trade 2. Term Loan 3. Financing of small and medium Industries 4. Agriculture Loan 5. House Building Loan 6. Financing of Transport 7. Financing of Non-Banking Financial Institute 8. Syndicate/Club Loan 9. Loan against FDR/Loan against Special Scheme 10. Financing of Export-Import 11. Stuff Loan 12. Bill Purchase/Loan against Share 13. CCS 14. Special Credit Scheme for Service holder 15. Credit Scheme for Women entrepreneurs 16. Prime Customer (5.00 crore or higher ) 3.5.1 Financing of small and medium Industries The main thrust of financing is given on small and medium Industries. This is the www.AssignmentPoint.com
  36. 36. priority sector of our Bank. 3.5.2 Financing of Trade Trade Finance includes CC (Cash Credit), SOD (Secured Overdraft) FO (Financial Obligation) and SOD (Secured Overdraft) RE (Real Estate) working capital. This will help the local trades and Businessmen to expand their trade and business unhindered. . 3.5.3 Financing of Import & Export All necessary Financing for Import & Export are done by opening L/C, buying documents providing, LIM, PAD, PC and LTR facilities for smooth functioning of foreign Trade. 3.5.4 Micro Credit and Micro Enterprise Scheme For poverty alleviation micro credit is provided to poor people without security for their self-sustenance to rehabilitate them in the society 3.5.5 Credit Scheme for Women entrepreneurs For developing Women entrepreneurship in the country this type of credit is extended to unemployed and skilled women, through which they can transform their micro credit in to small enterprises 3.5.6 Consumers Credit Scheme www.AssignmentPoint.com
  37. 37. Domestic useable items i.e. Computer, Photocopier, Furniture, Washing Machine, Air Cooler, Refrigerator, Sewing Machine, Car, Pressure Cooker etc are financed for comfortable and modern living of the people of limited source of income. 3.5.7 Special Credit Scheme for Service holder Under this scheme service holders of govt. bank or autonomous bodies are provided with 6 month's basic salary as loan realizable in 18 equal installments. Professionals are also covered enter this special credit scheme The Interest Rate of above Loans & Advances criteria are given below- SL LOANS & ADVANCES INTEREST RATE (Applicable From 01.07.2008) 1 Financing of Trade a CC (Hypo) 16.00% b CC (Pladge) 16.00% c SOD (RE) 16.50% d LTR/LIM 17.00% 2 Term Loan a Big & Medium Industry 14.75% b Small Industry (SME) 18.00% 3 Financing of small and medium Industries a Big & Medium Industry 14.50% b Small Industry (SME) 18.00% 4 Agriculture Loan 12.00% www.AssignmentPoint.com
  38. 38. 5 House Building Loan a Residential 16.50% b Commercial 16.50% 6 Financing of Transport 16.50% 7 Financing of Non-Banking Financial Institute 16.00% 8 Syndicate/Clab Loan 15.50% 9 Loan against FDR/Loan against Special Scheme 03.00% more 10 Financing of Export-Import 07.00% (Fixed) 11 Stuff Loan a Vehicle Bank Rate b Against PF 09.50% c House Building 08.00% 12 Bill Purchase/Loan against Share 16.50% 13 CCS 17.00% 14 Special Credit Scheme for Service holder 17.00% 15 Credit Scheme for Women entrepreneurs 16.00% 16 Prime Customer (5.00 crore or higher ) 16.00% www.AssignmentPoint.com
  39. 39. 3.6 Product & Services: Services BCBL provides specialized services to its clients3.6.1 Capital Market Operation The Bank operates capital market operation which will include Portfolio Management, Investors Account etc. 3.6.2 Counter for Payment of Bills Dedicated counters are available at BCBL's branches to receive the payment of various utility (DESA, Titas, BTCL) bills. 3.6.3 Other Services • Remit funds from one place to another through DD, TT and MT etc. • Conduct all kinds of foreign exchange business including issuance of L/C, Travelers’ Cheque etc • Collect Cheques, Bills, Dividends, Interest on Securities and issue Pay Orders, etc. • Act as referee for customers. 3.7 Various services of BCBL: Charges Revised Schedule of ChargesSL Type of Services Service Charge+15.00% VAT (where applicable) 1 Remittance -Inland 0.15%, Min. Tk.50/- (DD/TT/MT issuance) At actual At actual, Min. Tk.20/- 2 Issuance of Payment Order Up to Tk.1.00 Tha Tk.20/Up to Tk.1.00 lac Tk.30/- www.AssignmentPoint.com
  40. 40. Up to Tk.5.00 lac Tk.50/Above Tk.5.00 lac Tk.100/3 Issuance of instrument 4 Cancelation Of DD/TT/PO 5 Cancellation DD/TT/MT/PO 6 duplicate At actual Min. Tk.50/At actual Min. Tk.50/of Out of Clearing area, 0.15%, MaxTk.1000/-, Min-Tk.100/If Dishonored, Tk.50/At Actual conveyance Cancellation of Out of 0.15%, Max-Tk.1000/-, Min-Tk.100/Station Cheque/Document If Dishonored, Tk.50/Bill At Actual conveyance 7 Standing Instructions At actual Min. Tk.50/Every Instruction Tk.50/- @ monthly applicable 8 Inland Bill/Cheaque Cross 0.15%, Max-Tk.1000/-, Min-Tk.50/Tk.20/At actual Min. Tk.50/Interest @ OT Rate 9 Guarantee (Internal) First 3 months @ 0.75% 100% margin Tk.1000/- 10 Locker Small Per Year Tk.2000/- (Without Insurance Premium) Medium Per Year Tk.2000/- (Without Insurance Premium) Large Per Year Tk.2000/- (Without Insurance Premium) 11 Incidental Charge Personal Tk.300/Commercial Tk.500/- www.AssignmentPoint.com
  41. 41. 12 Account Close Personal Tk.100/Commercial Tk.200/- 13 A/C Statement First Time Free, Next every Tk.100/- 14 Loan Processing Fee (SME) 1.00% on approved Loan 15 Loan Appraisal Fee 0.25% on approved Loan Tk.400000/- Renewal Tk.200000/- 16 Certificate Issue 17 Service Charge Yearly Tk.100/- 18 Cheaque Book Issue Tk.1.00 per leaf and Tk.2.50 per leaf for new MICR 19 Cheaque Bounce/Return Tk.200/- Max Issue/Solvency Tk.200/- 3.8 Hierarchy of position in BCBL www.AssignmentPoint.com
  42. 42. Figure i: Organization Structure www.AssignmentPoint.com
  43. 43. Chapter-4 Investment policy 4.1 Investment policy of the Bank with Financial overview 4.1 Deposit www.AssignmentPoint.com
  44. 44. At the end of December 2008 the deposit of the Bank was Tk. 678.69. The growth of deposit is 19.43% compared to last year. The Bank has given great stress on procurement of low cost fund including cost free fund for bringing down the average cost of fund. Depos it 800 700 T aka in C rore 600 500 400 300 200 100 0 2001 2002 2003 Ye a r 2005 2006 2008 Figure iiii: Deposit, 2001-2008 4.2 Loans & Advances The Loans & advances of the Bank registered an impressive growth during the year 2008. The total loans & advances amounting to Tk. 578.60 Crore. The advance portfolio of the Bank is well diversified and covers funding to a wide spectrum of business and industries including agro-based and agro processing, ship scraping, steel& engineering, paper & paper products chemical, construction, real-estate and loans under consumers, credit schemes, various trading business, service holders loan and women entrepreneurs of the country. www.AssignmentPoint.com
  45. 45. L oans & A dvanc es 578.69 57 2001 170 2002 291.1 307.29 2003 2005 381.54 2006 2008 Ye a r Figure iiii: Investment, 2001-2008 4.3 International trade The international trade constitutes a major business activity conducted by the Bank. The important business of the Bank indicated a significant increase in the year. The import business during the year 2003 reached to Tk. 200.00 crores against Tk. 100.00 crores of the previous year which reflected a growth of 100%. The import business made by the Bank resulted in steady increase of revenues for the bank in spite of the downward trend in international trade. The export business handled by the Bank during the year 2003 was Tk. 210.00 crores compared to Tk. 85 crores in the previous year. The slow growth in export business is due to debacle in geopolitical arena, surrounding economic instability. www.AssignmentPoint.com
  46. 46. e o r C n i k a T Import Business 250 200 150 100 50 0 200 100 2002 2003 Year Figure iv: Import Business, 2002-2003 Export Business 250 210 200 150 100 o l M n i k a T 85 50 0 2002 2003 Year Figure v: Export Business, 2002-2003 4.4 Advance Deposit Ratio If we observe the Ratio on Investment and Deposit, it appears that the MFI uses most of there deposits to investment which refers that the MFI mobilize its resources for the best reproduction. www.AssignmentPoint.com
  47. 47. Advance Deposit Ratio 90 80 70 60 ) % ( 50 40 30 71 2003 61 73 2005 82 20 10 0 2002 2006 Year Figure vi: Advance Deposit Ratio, 2002-2006 In 2002 the ratio was 61.00%. It rises to 82.00% in 2006. 4.5 Operating Result and Profit The Bank earned an operating profit of Tk. 7.04 crore during the year before making any provisions. The operating profit of the Bank during the year 2002 was Tk. 3.15 crore and this the Bank attained a growth of 124% in respect of operating profit. Due to having a cumulative loss of Tk. 5.43 crore no provision for income tax has been provided. After keeping a provision for loans & advances amounting to Tk. 2.23 crores the rest amount has been adjusted with cumulative loss which reduced the cumulative loss to Tk. 1.58 crores. www.AssignmentPoint.com
  48. 48. Performance Acceleration 8 6 4 e o r C n i k a T 2 0 2001 2002 2003 2008 Year Operating Profit Figure vvii: Performance Acceleration, 2001-2003, and 2008 4.6 Guarantee Business The Bank issued guarantees amounting to Tk. 50.00 crores during the year compared to Tk. 20.00 crores in the previous year registering a growth of 250%. The guarantees were issued in favour of different Govt. authorities, Autonomous bodies, Corporations, Multinational Companies etc. against proper securities on behalf of the clients of the Bank. 4.7 Investment The Investment portfolio of the Bank during the year 2003 was Tk. 14.00 crore against Tk. 6.15 crore in the previous year registering a growth of 133%. The portfolio of investment included Govt. Treasury Bills, Prize Bonds, Share in Public Limited Companies etc. The Bank has always given emphasis on investment of fund in high yield areas and maintains Statutory Liquidity Requirement (SLR) as fixed by Bangladesh Bank. www.AssignmentPoint.com
  49. 49. 4.2 Bank’s Performance at Glance BCBL at a Glance Figure in Crore Sl. No. Particulars 2001 2002 2003 2008 01. Authorized Capital 200.00 200.00 200.00 200.00 02. Paid-up Capital 82.00 692.00 92.00 105.79 03. Loans & Advances 57.00 170.00 291.10 578.60 04. Deposits 176.00 280.00 409.39 678.69 05. Investment 1.00 1.02 0.90 - 08. Operating Profit 0.22 3.15 7.04 3.25 09. Loan as a % of total Deposit 71.00% 61.00% 32.00% - 11. Number of Employees 384 375 436 433 12. Number of Branches 24 25 25 25 Table i: BCBL's Performance, 2001-2003, 2008 www.AssignmentPoint.com
  50. 50. Capter-5 Product & Services Rival Banks 5.1 Deposit Products: Standard Bank Ltd. www.AssignmentPoint.com
  51. 51. 5.1.1 SRDP – SBL Regular Deposit Program SRDP is a special savings plan that allows you to save and a monthly basis and gets a handsome amount at maturity. SRDP Account gives you the convenience of saving regularly in time with your monthly income stream. So, if you want to create a big savings to fulfill your cherished dream SRDP in the right solution. -To open a SRDP Account all you need is to be over 18 years of age and a Bangladeshi Citizen. -You can open a SRDP Account within 10 days of the month by filling up a prescribed account opening form at any Branch of Standard Bank Limited. -You need to open a SRDP Account for 3 (three) or 5 (five) years, i.e. 36 and 60 equal monthly deposits respectively. -Under the SRDP you can choose between a minimum monthly deposit amount of Tk.300.00 and a maximum amount of Tk.1000.00 Monthly deposit amount and amount receivable after 3/5 years Installment Amount Matured Value 3 years 5 Years Tk. 300.00 12,550.00 22,800.00 Tk. 500.00 20,900.00 38,000.000 Tk. 1,000.00 41,800.00 76,000.000 Tk. 2,000.00 83,600.00 1,52,000.00 Tk. 2,500.00 1,04,500.00 1,90,000.00 Tk. 5,000.00 2,09,000.00 3,80,000.00 Tk. 10,000.00 4,18,000.00 7,60,000.00 www.AssignmentPoint.com
  52. 52. 5.1.2 Flexibilities  Easy procedure to open SRDP  Upto 80% loan facility against SRDP deposit. 5.1.3 SRIP – SBL Regular Income Program SBL Regular Income Program is an income program, which helps you to earn a monthly fixed amount on your deposits at SBL for a period of 3 years.If you are over 18 years of age, a Bangladeshi citizen and an account holder of SBL, you are eligible to open SBL Regular Income Program with our any branch and any time you want. It’s that easy. Deposit Amount Monthly Interest Payable 50,000.00 450.00 100,000.00 900.00 2,00,000.00 1800.00 3,00,000.00 2700.00 4,00,000.00 & above 3600.00 & above www.AssignmentPoint.com
  53. 53.  Easy procedure to open SRIP  Automatic profit transfer to linked account  Upto 80% loan facility against SRIP deposit. 5.2 (DI+) Double Income Plus Double Income Plus is a 06 (six) years Program. Your deposit doubled plus in 06 (six) Months. Minimum initial deposit for the program is tk from 10,000/- (Ten Thousand) to Tk.25,00,000/- (twenty five lac). 5.2.1 Features of the Product are To start with the Double Income Plus (DI +) deposit program one customer has to put Tk from 10,000/- (Ten Thousand) to Tk.25,00,000/- (twenty five lac) after maturity the deposited Double Plus. If the accounts/deposits are closed/encashed after one year of its opening, interest shall be allowed on the deposit at prevailing FDR interest rate. 5.2.2 Features & Regulations of the Program -Deposit range is from 10,000/- (Ten Thousand) to Tk.25, 00,000/- (twenty five lac). -Term of Deposit 06 (six) years 06. -Double Plus amount will be paid after completion of the 06 (six) years term. www.AssignmentPoint.com
  54. 54. -Income Tax may be deducted as imposed by the government on the interest amount at the time of maturity/payment. 5.2.3 Special attractions 80% loan is allowed upon the deposit balance instantly. Payment Matrix [(for amount of tk from 10,000/- (Ten Thousand) to Tk.25, 00,000/- (twenty five lac).] At Maturity is shown below Tenure Deposit Value at Maturity 6 years 10,000/- 20,200.00 20,000/- 40,400.00 50,000/- 1,01,000.00 1,00,000/- 2,02,000.00 6 months 6 years 6 months 6 years 6 months 6 years 6 months 5.3 LSDIP- Life Secured Double Income Program We know Savings increase Deposit and Deposit creates the opportunity of Investment. The Investment patronizes the establishment of Industry and presents wealthy economy of the country. So, the importance of Savings is vital for the country. Moreover, in www.AssignmentPoint.com
  55. 55. personal life savings ensure our future. Out of all uncertainty death is the universal message of truth for all of us. Focusing on that SBL introduced Insurance Covered & life secured a special deposit program for fruitful utilization of its client’s hard earned savings. 5.3.1 Features & Regulations of the Program -Deposit range is from Tk.1, 00,000.00 (One Lac) to Tk.25, 00,000.00 (Twenty Five Lac). -Term of Deposit 07 years. -Double amount will be paid after completion of the 7 years term. -Saving rate will be allowed for any pre-mature encashment. -In case of death of the depositor nominee will get double amount of the deposit balance. But it will effect after 12 (twelve) months from the date of account opening. 5.3.2 Special terms of the scheme -Depositor's age will be maximum 50 years. www.AssignmentPoint.com
  56. 56. -40 years above depositors will provide physical fitness certificate from the competent medical authority in case of the deposit amount of Tk.2, 00,000.00 (Two lac) above. -In all cases depositors will provide a declaration about health fitness in a prescribed form -Income Tax may be deducted as imposed by the government on the interest amount at the time of maturity/payment. 5.3.3 Special attractions -In case of death of the depositor nominee will get double amount of the up to date deposit balance. -80% loan is allowed upon the deposit balance instantly. 5.4 Revised Rate of Interest Savings Deposit 7.00% & STD Deposit 6.00% www.AssignmentPoint.com
  57. 57. Deposit Products FDR for below FDR for Tk. 50 Tk. 50 Lac Lac & above FDR ( 1 Month but less than 3 Months) 9.00% 9.00% FDR ( 3 Month but less than 6 Months) 11.50% 13.50% FDR ( 6 Month but less than 1 Year) 12.00% 13.00% FDR (1 Year and above) 12.50% 13.50% 5.5 Loan Products: Standard Bank Ltd. Standard Bank Limited, occupied the leading position in 3rd generation private commercial bank, to explore a new horizon in innovative modern Banking creating an automated computerized environment providing one stop service and prepare itself to face the new challenges of globalization of 21st century. Bank provides assistance for local and international trade using every mood of finance to the traders, exporters, manufactures, individual etc. The international trade encompasses a substantial portion of business conducted by the Bank. During the year 2004, the bank has contributed in the national economy after www.AssignmentPoint.com
  58. 58. successfully handling of foreign exchange transactions viz. Import, Export (Both local and foreign). In the wake of recession of business, the government is currently pursuing an accommodative monetary policy through a number of measures such as reduction in Bank rate, reduction in interest rate in government bonds and reduction on SLR requirement, simultaneously adoption of floating exchange rate and open market operation fueling incentives towards private investment with the aim of creating more capital avenues thereby generating more income to add to the GDP of the economy. In the juncture, it is very tough for a Bank to remain on track of competition to achieve desired goal in international trade. In order to achieve our cherished goal of achieving consumer satisfaction we extend our hand in the following sector:  Trade Finance  Small & Medium Business  House Building loan  Consumer Credit  Transport Loan  International Trade  Project Financing  Lease Financing  Financing for BMRE  Agricultural loan  Special finance for non-traditional item  Syndication Finance 5.6 Mood of Finance that we provide www.AssignmentPoint.com
  59. 59.  Secured Overdraft: For Work Order, General purpose etc.  Cash Credit (Hypothecation)  Cash Credit (Pledge)  Letter of Credit  Back to Back L/C  Loan against Trust Receipt  Loan against Import Merchandise  Bank Guarantee 5.7 Retail Products: Standard Bank Ltd. Consumer financing products are ∇ Salary loan scheme ∇ Car/auto vehicles loan ∇ House renovation loan ∇ Household durables loan ∇ Self employed professional loan ∇ Land purchase loan ∇ Marriage loan 5.7.1 Salary loan scheme This scheme will cover all salaried executives/officers having confirmed / permanent job in any of the following organizations: - Government Organizations www.AssignmentPoint.com
  60. 60. - Semi Government & autonomous bodies - Banks, well-established and reputed insurance companies and any other alike financial institutions. - Multinational companies, Large NGOs, Aid Agencies, UN Bodies. - Large Private organization having corporate structure. - Teachers of reputed Universities, Colleges & Schools. - Hospitals, Pathology Labs, Air lines, 5 Star Hotel & Restaurants. - Length of service: Minimum 2 (two) years for type A,B,C - Minimum Monthly Salary: TK. 20,000 (Twenty Thousand) Gross. - Loan limit: ranges up to 2.00 Lac but not exceeding 3 (three) times of gross salary. - All other conditions as stated in serial 1 to 13 to be followed. 5.7.2 Auto loan (car, auto-rickshaw, micro-bus, taxi, pick-up van Features  Loan amount ranges from Tk. 1.00 Lac to 10.00 Lac  Debt equity ratio 60:40.( Bank contribution 60% & Client 40%)  Repayment tenure12, 24,36,48 or60 months.  Loan amount excludes insurance, Vat, registration etc.  Option of pre-paying after a minimum of 6 months from loan disbursement.  The car /auto will be registered in joint name where in Standard Bank Will be the first party. Customer will bear the insurance charges.  All other conditions as stated in serial 1 to 13 to be followed. 5.7.3 Self employed professional loan www.AssignmentPoint.com Ltd.
  61. 61.  Self employed professional Loan is a loan facility offered by the Retail Banking Division to facilitate the registered Doctors, Dentists, Pathologists, Engineers, Architects ,Scientists, Chartered accountants who are salaried as well as self employed.  Minimum of 3 years continuos service experience.(Both salaried & self employed)  Age-30 years to 57 years.  Monthly Income- Tk. 15,000/- gross.( Minimum).  Maximum Limit TK. 5.00 Lac.  Maximum loan upto 10 times of gross salary or net income of self-employed.  All other conditions as stated in serial 1 to 13 to be followed. 5.7.4 Marriage loan Marriage Loan is a personal loan facility offered to executives/officers intends to marry to incur his/her marriage expenditure or their sons and daughters.  Limit: Maximum Tk. 2.00 lac.  Age: 25 years to 57 years.  All other conditions as stated in serial 1 to 13 to be followed. No marriage loan will be provided against 2 nd Marry. 5.7.5 Household durables loan  Household durable loan is a personal loan offered to salaried /self employed persons to make their wishes true for purchasing computer, Refrigerator, A.C., T.V., Motorcycle, Washing Machine etc.  All other conditions & eligibility as stated in serial 1 to 13 to be followed.  Limit: Minimum Tk. 20000/- Maximum Tk. 1.00 Lac  Product quotation to be obtained. www.AssignmentPoint.com
  62. 62. 5.7.6 House renovation loan  House renovation Loan scheme is a Personal Loan facility offered to salaried/self- employed persons to furnish & renovate their house.  Limit: Maximum: Tk. 4.00 lac. Debt equity ratio 50:50  Applicant must be owner of the land & building.  The house must be situated at Cities.  Age Limit: 30 years to 60 years.  All other conditions as stated in serial 1 to 13 to be followed. 5.7.7 Land purchase loan - Land purchase loan scheme is a personal loan facility offered to salaried / self employed persons to purchase lands in the city areas. - Limit maximum TK. 10.00 Lac - Applicant must be purchaser of the land. - The land will be mortgaged to the Bank as per registration Act. - Debt equity Ratio 50:50 - All other conditions as stated in serial 1 to 13 to be followed. 5.7.8 Lease Finance Standard Bank Limited offered Lease Finance facilities to its valued client’s with a view to facilitate client’s to acquire equipments and machineries without investing any fund in spite of paying fixed lease rentals. Fixed lease rentals can be tailored both in terms of amount and timing to the profit and cash flow position of www.AssignmentPoint.com
  63. 63. the Lease Holder. At the end of the lease contract the lease assets back to the client with a nominal and depreciated value. 5.8 Price: Loan Types of Loan ( Effective Form 03 November 2007) Agriculture/Agro based/ Agro processing 1 9.00% Term loan on large & Medium Scale Industry 2 15.00% Term loan on small Industry 3 15.00% Working Working Capital On large & 4(a) Capital On Medium Scale Industry Industry Working Capital On small 4(b) Industry 15.00% Export 5 7.00% Commercial Loan 6 15.00% Housing Loan 7 15.00% Consumer Credit 8 16.00% Credit Card 9 Not Applicable Loan to NBFIs 10 16.00% Others 11 15.00% www.AssignmentPoint.com 15.00%
  64. 64. 5.9 Services: Standard Bank Ltd. Standard Bank provide different services 1. Remittance Service 2. Locker Service 3. Utility Bills collection Services a. T&T Bill Collection b. PDB Electricity Bill c. DESCO Bill Collection d. Rural Electricity Board (REB) Bill Collection (Revised Schedule of Charges w.e.f. 17.12.2008) Sl. No. Type of Services Nature of Charges Revised Rate of Charges Service Charge / Incidental Charge 1 Current Account A/C Closing Charge Service Charge / Incidental Charge 2 Savings Account A/C Closing Charge Tk.100/- www.AssignmentPoint.com
  65. 65. Service Charge / Incidental Charge 3 @Tk.300/- half yearly on each A/C irrespective of balance (for rural branches Tk.150/- half yearly) except Employees A/C STD Account A/C Closing Charge A/C Closing Charge 4 Tk.100/Tk. 300/- half yearly on each A/C irrespective of balance (for Metropolitan Area) Scheme Account (for Rural Branches Tk.200/- half yearly) except Employees A/c 5 Standing Instruction Charge Small Size 6 Tk.150/- Tk.200/- half yearly on each A/C irrespective of balance (for Metropolitan Area) (for Rural Branches Tk.150/- half yearly) except Employees A/C Locker & Save Custody Medium Size Large Size Charge Tk.200/- per case Free (For each monthly/quarterly), Tk.50/other than above Mail Charge 8 Tk.3500/- per locker Charge Issuance of Solvency Certificate Tk.3500/- P.A. Security Money (Refundable) 7 Tk.2000/- P.A. Tk.50/- per Statement within Bangladesh and outside Bangladesh Tk.50/- plus at actual postage. Supply of Original Statement of Account 9 Issuance of Cheque Book 10 Issuance of Foreign Currency Charge Balance Certificate 11 Local Collection of Cheques Charge Commission Tk.1.00 per leaf for CD/STD and Tk.0.50 per leaf for SB Account (except Employees A/C) Tk.100/- per certificate Free (where there is clearing house) www.AssignmentPoint.com
  66. 66. Local Collection of Cheques (where there is no clearing house) At actual Charges Bounce cheque drawn on us Charges (cash, clearing or transfer) Min. Tk.50/- per case Tk.100/- per instance 12 Local currency cheque returned Charges unpaid sent on collection Tk.100/- per instance Commission Up to Tk.25000/Tk. 25001/- to 100000/13 0.20%, Min. Tk.100/0.20%, Min. Tk.100/- Collection of outstation Tk.100001/- to 500000/cheques/bills (clean / documentary) Over Tk.500000/- 0.10%, Min. Tk.200/0.05%, Min Tk.500/- Max.2500/- Postage (Registered) At actual, Min. Tk.50/- Telex/Telegram Charges At actual, Min. Tk.50/- Telephone Commission Remittance -Inland Additional Charges for TT (Postage) At actual (DD/TT/MT issuance) Telex/SWIFT At actual, Min. Tk.40/- Telephone/Fax Tk.50/- Charge of Cancellation Tk.100/- Postage / Courier 14 0.15%, Min. Tk.50/- Tk.50/- Cancellation of DD/TT/MT/PO Tk.50/-, up to Tk.1000/Telex/SWIFT/Fax Tk.100/- above Tk.1000/- Issuance of duplicate instrument Charge for issuance Tk.100/- Plus actual Telex or Postage Charges incurred there against Up to Tk.1.00 lac Tk.25/- Issuance of Payment Order Charge for issuance Up to Tk.5.00 lac Tk.60/Above Tk.5.00 lac Tk.100/- www.AssignmentPoint.com
  67. 67. 15 Duplicate issue of FDR Charge Tk.200/- 16 Issuance of Bangladesh Bank Cheque at the request of theCharge client Tk.200/- per instance Up to Tk.25000/- @Tk.0.25% Min. Tk.100/Above Tk.25000/- to 1.00 lac @0.25% Min. Tk.200/- Commission Above Tk. 1.00 lac to Tk.5.00 lac @0.25% Min. Tk.300/Above Tk. 5.00 lac to10.00 lac @0.10% Min. Tk.500/- 17 Above Tk.10.00 lac @0.10% Purchase of Cheques and Inland Bills Min. Tk.1000/Postage (Registered) At actual Min. Tk.25/- Telegram At actual Min. Tk.50/- Telex / Fax At actual Min. Tk.50/- Telephone At actual Min. Tk.50/- Interest Interest to be charged as per lending rate from date of purchase up to the date of realization of proceeds and handling charges Tk.500/Half Yearly 18 yearly - Free Free Balance Confirmation Certificate Charge For more then two times in a year, Tk.200/- for issuance of each Certificate 19 Certificate for BO A/c Charge Tk.100/- 5.10 Deposit Products: Prime Bank Ltd. www.AssignmentPoint.com
  68. 68. Bank is the largest mobilizer of surplus domestic savings. For poverty alleviation, we need self employment, for self-employment we need investment and for investment we need savings. In the other words, savings help capital formations and the capital formations help investments in the country. The investment in its turn helps industrialization leading towards creation of wealth of the country. And the wealth finally takes the country on road to progress and prosperity. As such, savings is considered the very basis of prosperity of the country. The more the growth of savings, the more will be the prosperity of the nation. The savings rate in Bangladesh is one of the lowest in the world. In order to improve the savings rate, Financial Institutions responsible for mobilization of savings should offer attractive Savings Schemes so that the marginal propensity to save increases. The savings do not, of course, depend only on the quantum of income but largely depend on the habit of savings of the people. Interest rate of Savings Deposit Account is 6.00% for the year 2008. Prime Bank have formulated following Deposit Scheme 1. Contributory Savings Scheme 2. Monthly Benefit Deposit Scheme s 3. Education Savings Scheme 4. Fixed Deposit Scheme 5. Short Term Deposit 6. Lakhopati Deposit Scheme 7. Double Benefit Deposit Scheme 8. Foreign Currency Account 9. Resident Foreign Currency Deposit Account 10. Non-resident Foreign Currency Deposit Account 11. Non-resident Taka Account www.AssignmentPoint.com
  69. 69. 12. Non-resident Investors Taka Account 13. House Building Deposit Scheme 14. Prime Millionaire Scheme 5.10.1 Rate of Fixed Deposit This type of deposit should be kept for a fixed term or period. Prime Bank Limited deals with the following terms deposit. Sl. No. 1 2 Particulars Interest Rate 1 (One) month 7.50 % 3 (Three) months i) ii) Tk. 1.00 crore & above but below 13.00 % Tk. 5.00 crore iii) 3 Below Tk. 1.00 crore 11.50 % Tk. 5.00 crore & above 13.00 % 6 (Six) months i) ii) Tk. 1.00 crore & above but below 13.00 % Tk. 5.00 crore iii) 4 Below Tk. 1.00 crore 11.50 % Tk. 5.00 crore & above 13.00 % 1 (One) year & above i) Below Tk. 1.00 crore www.AssignmentPoint.com 12.00 %
  70. 70. ii) Tk. 1.00 crore & above but below 13.00 % Tk. 5.00 crore iii) Tk. 5.00 crore & above 13.00 % N.B. For Senior Citizenship Scheme 0.50% higher rate may be offered. Particulars Interest Rate Below Tk. 1 crore 5.00% Tk. 1 crore and above 6.00% 5.10.2 Short Term Deposit • A short term deposit (STD) account is a running account with amounts being paid into and drawn out of the account continuously. • These accounts are called Demand Deposits or Demand Liabilities since the banker is under obligation to pay the money in such deposits on demand • These accounts are generally opened by Business Organization, Public Institution, and Corporate Bodies. • An STD account may be opened by an individual person. • It is an interest bearing deposit. Interest is calculated on daily basis as per Banks Prescribed Rate and is credited to account on half yearly basis. Current interest rate on STD account is presented in the following table: N.B. For the Senior Citizenship Scheme 0.50% higher rate may be offered. www.AssignmentPoint.com
  71. 71. 5.10.3 Monthly Benefit Deposit Scheme -This is a Deposit Scheme where the depositor gets monthly benefit out of his deposit. -The scheme is designed for the benefit of the persons who intend to meet the monthly budget of their families from the income out of their deposit. -Investment of fund of Trusts and Foundations, which award monthly scholarships/ stipends to students, etc. The salient features of the Scheme are given below 1. Deposit of Tk. 25,000.00 (Taka twenty five thousand) and multiples thereof, but maximum Tk. 25, 00,000/- (Taka twenty-five lac) shall be acceptable under the Scheme. 2. The Deposit shall be for a period of 5 (Five) years. The Principal amount is refundable on maturity. 3. Profit shall be paid on monthly basis @ Tk. 1,000.00 per Tk. 1, 00,000.00. 4. Payment of monthly profit shall start from the subsequent month after a clear minimum gap of 30 days from date of deposit. 5. In case of death of a depositor, the account shall cease to be operative and the amount deposited so far shall be paid to the nominee, and in the absence of nominee, to the legal heirs of deceased as per rules in force. 6. Normally, the deposit will not be encashable before 5 (Five) years. But if any depositor intends to withdraw his deposit before maturity due to certain unavoidable reasons, he would be allowed to do so in the following manner: a) No benefit including interest shall be allowed for pre-mature encashment within one year. b) If the accounts / deposits are closed/ encashed after one year of its opening, benefit shall be allowed on the deposit at existing normal Savings Deposit rate. www.AssignmentPoint.com
  72. 72. c) If the amount of monthly profit already paid exceeds the amount payable at normal Savings rate, the difference shall be realized from the principal deposit amount, if and when necessary. 7. Separate Application Form specially designed for the purpose shall be obtained duly filled in and signed by the depositor. In addition to this, the depositor must have a separate Savings Bank Account with the branch wherein the benefit on the amount so deposited shall be credited every month. 8. A specially designed Receipt shall be issued for the deposit under the Scheme in the same manner as issued in case of FDR. 9. The Receipt will not be transferable. 10. Advance against lien on such Receipt can be allowed up to 80% of the deposit bearing normal rate of interest prevalent at the time on Overdraft/ Loan. 11. During the period of such Overdraft/ Loan, the monthly benefit shall be credited to the concerned Overdraft/Loan. 12. Payment will be made after deduction of taxes as fixed by the Govt. from time to time. 13. In case the instrument is lost, the procedure for issuance of a duplicate will be the same as applicable in case of loss of FDR. N.B. Senior Citizens will get 0.50% higher rate of interest as permissible for all other deposits of our Bank. Monthly benefit shall be Tk. 1042/- per Tk. 1, 00,000/- per month for Senior Citizens. 5.10.4 Double Benefit Deposit Scheme 1. The Scheme shall be implemented through all the branches of Prime Bank Limited. 2. Deposit of Tk. 25,000/- (Taka twenty five thousand) and multiplies thereof but maximum limit of Tk. 25, 00,000/- (Taka twenty five lac) at a time will be acceptable under the scheme. 3. The instrument shall be issued for 06 (six) years term. 4. At maturity after 06 (six) years double the amount of deposit will be paid to the depositor. www.AssignmentPoint.com
  73. 73. 5. Photograph of Nominee, duly attested by the depositor, shall be obtained at the time of opening the account. 6. Normally no withdrawal will be allowed before maturity. But if any depositor intends to withdraw his deposit before maturity, the following rules will applyNo benefit including interest/profit shall be allowed for pre-  mature encashment within one year. If the accounts / deposits are closed / encashed after one year  of its opening, benefit shall be allowed on the deposit at normal Savings Deposit rate. 7. The instrument will be acceptable as collateral security against any investment subject to registering lien with the issuing branch. 8. In case of death of a depositor, the amount of instrument will be paid to the nominee, to the legal heirs of the depositor on production of succession certificate. 9. In case of instrument is lost the procedure for the issuance of a duplicate receipt will be the same as applicable in case of loss of FDR. 10. Under the scheme depositor can get free insurance facility. 11. Insurance coverage is only applicable to personal accident and serious illness related insurance policy. 12. Depositor can take loan against his/her deposit under this scheme. At present no income tax will be deducted from the interest earned. But in future for any change in the government policy Bank reserves the right to deduct income tax. 5.10.5 Education Savings Scheme The educational expenses particularly the expenses for higher education are sharply increasing day by day in our country. Sometimes, the children are deprived of getting the desired level of education because of the inability of the parents to meet their educational expenses. But the parents would not feel any difficulty to defray such expenses if a proper financial planning is made much ahead of time. www.AssignmentPoint.com
  74. 74. Moreover, we are receiving demands from the Islamic minded people of our country for an attractive Savings Scheme on the basis of Islamic Sariah so as to encourage them to save in Islamic way for education of their children. With this end in view, Prime Bank Limited has introduced a Savings Scheme entitled “Education Savings Scheme” in accordance with the principles of Islamic Sariah i.e., on the basis of profit and loss sharing. The scheme provides a unique opportunity to the parents to make a future provision for the educational expenses of their children when they enter into Schools, Colleges and Universities out of the benefit of a small amount of savings with the Bank at an opportune moment. The salient features of the Scheme are given below1. The Scheme shall be implemented through all our branches, though it is specially designed for Islamic Banking branches. 2. Deposit of Tk. 50,000/- and multiples thereof but maximum limit of Tk. 5, 00,000/- at a time will be acceptable under the Scheme. 3. A specially designed Receipt shall be issued for the deposit under the Scheme in the same manner as issued in case of FDR. Branches shall use the ESS receipts that used for existing scheme. 4. The instrument shall be issued for a period of 5 years term. 5. On maturity a lump sum amount of Tk. 85,382/- shall be payable or education allowance @ Tk. 1,854/- per month per Tk. 50,000/- shall be payable on the basis of deposit amount for next 5 years starting from the completion of the term as per following table. Income Tax @10% on interest may be deducted at source at the time of payment of lump sum amount Initial Deposit (Taka) Lump sum payable at (Taka) amount Amount of Education maturity allowance per month (Taka) 50,000/- 85,382/- 1,854/- 1,00,000/- 1,70,763/- 3,705/- www.AssignmentPoint.com
  75. 75. 1,50,000/- 2,56,145/- 5,558/- 2,00,000/- 3,41,526/- 7,410/- 2,50,000/- 4,26,908/- 9,263/- 3,00,000/- 4,69,704/- 11,115/- 3,50,000/- 5,47,988/- 12,968/- 4,00,000/- 6,26,272/- 14,820/- 4,50,000/- 7,04,556/- 16,673/- 5,00,000/- 7,82,840/- 18,525/- 6. To avail the monthly allowances the depositor is required to surrender the savings instrument to the Bank duly discharged with a written instruction to the Bank to pay the installments to his ward on monthly installment basis as stipulated in the scheme. 7. Separate Application form specially designed for the purpose shall be obtained duly filled in and signed by the depositor. 8. Photograph of the Nominee and Ultimate Beneficiary, if any, duly attested by the depositor, shall be obtained at the time of opening the account. 9. Normally no withdrawal will be allowed before maturity. But if any depositor intends to withdraw his/her deposit before maturity, the following rules will be applicable: a) No benefit including interest shall be allowed for pre-mature encashment within one year. b) If the accounts/deposits are closed/encashed after one year of its opening, benefit shall be allowed on the deposit at normal Savings Deposit rate. 10. The instrument will be acceptable as collateral security against any investment subject to registering lien with the issuing Branch. 11. In case of death of the depositor, the amount of instrument will be paid to the nominee or, in the absence of a nominee, to the legal heirs of the depositor on production of succession certificate. www.AssignmentPoint.com
  76. 76. 12. But if the nominee after the demise of the depositor intends to continue the deposit to enjoy the monthly educational allowance for five years, as admissible under the rules of the scheme, the receipt should be surrendered to the Bank on maturity duly discharged by the nominee and duly authenticated by the legal guardian. 5.10.6 Lakhopati Deposit Scheme Monthly Installment size, tenure and terminal value of the scheme will be as follows: Monthly Installment Tenure Size (Taka) Amount to be paid after maturity (Taka) 250/- 15 years 1,00,000/- 500/- 10 years 1,00,000/- 1,285/- 5 years 1,00,000/- 2,400/- 3 years 1,00,000/- 1. At present no income tax will be deducted from the interest earned. But in future for any change in the government policy Bank reserves the right to deduct income tax. 2. The depositor will have the option to choose any installment size and period at the time of opening of the account and will not be allowed to change the size of installment afterwards. 3. Account in the name of minors can be opened too under the Scheme as per standard procedure for minor accounts. 4. A person can open more than one account for any size of installment in any branch of the Bank. 5. The specified amount on maturity at any slab shall be paid after one month from the date of deposit of the final installment. www.AssignmentPoint.com
  77. 77. 6. The installment shall be payable by the 8th day (in case of holiday the next working day) of every month. Advance payment of any number of installment is acceptable. 7. Normally no withdrawal shall be allowed before maturity, if any depositor intends to withdraw his/her savings due to certain unavoidable reasons before 3 years, 5 years, 10 years and 15 years, he/she will not be allowed any benefit if the premature encashment takes place before completion of 1 year. But the depositor shall be allowed interest on the prevailing Savings Deposit rate after completion of 1 year from the date of opening of the account. 8. When a depositor fails to deposit any installment, he/she will have to pay a fine 5% of the overdue amount payable at the time of depositing the next installment or Tk. 20/- whichever is higher. 9. If a depositor fails to pay 3 (three) consecutive installments he will have to pay 5% fine of the overdue installments to regularize the account. If he fails to pay more than 3 (Three) installments he will cease to remain under the purview of the scheme and the deposit will be treated as Savings Bank deposit and interest will be paid on the deposited amount at prevailing SB A/C rate subject to completion of 1 (one) year of its opening. 10. Loan may be allowed up to 80% of the deposited amount against lien on the same where the deposited amount shall be at least Tk. 50,000/- and the interest rate of the loan shall be as per prevailing commercial lending rate of the Bank. 11. In case of death of a depositor, the account will cease to be operative and the amount deposited so far shall be paid to the nominee, and in absence of nominee, to the legal heirs of deceased as per rules in force. 12. The Bank at its discretion may allow inter branch transfer of the A/C under the Scheme. 13. The clients are encouraged to give standing instructions to the Bank to deposit the monthly installments, debiting their CD/SB accounts maintained with the concerned Branch. In that case, no charge will be realized for such service. www.AssignmentPoint.com
  78. 78. 14. Normally no statement of the account will be served to the depositor, in case of need of any depositor, charge @ Tk. 10/- per year / per statement shall be realized as cost of paper. This charge may be changed from time to time. 5.10.7 Prime Millionaire Scheme The salient features of the Scheme are given below1. Monthly installment shall be Tk. 12,465.00 /Tk. 7,890.00 /Tk. 4,570.00 for the tenor of 5/7/10 years respectively 2. Terminal amount on maturity shall be Tk. 10.00 lac. Size of monthly Investment deposit (in Taka) Tenor (in Year) After the investment Tenor Pension size of the terminal value of the installment according Scheme (in Taka) to the years Invested (in Taka ) 12,465/- 5 1,000,000/- 21,748/- 7,890/- 7 1,000,000/- 17,137/- 4,570/- 10 1,000,000/- 13,786/- 3. Income Tax on interest amount shall be as per Government rule on taxation and the Bank reserves the right to deduct Income Tax. 4. The depositor will have the option to choose any installment size at the time of opening of the A/C. and will not be allowed to change the size of installment afterwards. 5. A person can open more than one account. 6. The installment shall be payable by the 8th day (in case of holiday the next working day) of every month. Advance payment of any number of installments is acceptable. 7. Normally no withdrawal shall be allowed before maturity, If any depositor intends to withdraw his/her deposit due to certain unavoidable reasons before maturity (Min after one year) interest on the prevailing Savings Deposit rate may be allowed. www.AssignmentPoint.com
  79. 79. 8. When a depositor fails to deposit any installment, he/she will have to pay a fine @5% of the overdue amount payable at the time of depositing the next installment or maximum Tk. 500/- . 9. When a depositor fails to pay 3 (Three) consecutive installment at any point of time before 2 years term, the customer will cease to remain within the purview of the scheme and scheme will be treated as a Savings Bank deposit and interest will be paid on the deposited amount at prevailing SB A/C rate subject to completion of 1 (One) year of its opening. 10. In case of death of a depositor, the A/C. will cease to be operative and the amount deposited so far shall be paid to the nominee, and in the absence of nominee, to the legal heirs of deceased as per rules in force. 11. The Bank at its discretion may allow inter branch transfer of the A/C under the Scheme. 12. The clients are encouraged to give standing instructions to the Bank to deposit the monthly installments, debiting their CD/SB accounts maintained with the concerned Branch. In that case, no charge will be realized for such service. 13. Normally no statement of the account will be served to the depositor. Incase of need of any depositor, charge @Tk.10/- per year / per statement shall be realized as cost of paper. 5.11 Loan Products: Prime Bank Ltd. Like Deposit Scheme, PRIMA BANK have formulated the following Loan Schemes ∇ General Loan Scheme ∇ Lease Finance ∇ House Building / Apartment Loan Scheme ∇ Small and Medium Enterprise (SME) ∇ Consumer Credit Scheme ∇ Hire Purchase www.AssignmentPoint.com
  80. 80. ∇ Advance against Share 5.11.1 General Loan Scheme Depending on the various nature of financing, all the lending activities have been brought under the following General Loan • Short term Loan • Medium term Loan • Long term Loan The loans are allowed to individual/firm/industries for a specific purpose but for a definite period and generally repayable by installments fall under this head. This type of lending are mainly allowed to accommodate financing under the categories (i) Large & Medium Scale Industry and (ii) Small & Cottage Industry. Very often term financing for (1) Agriculture (ii) Others. 5.11.2 Lease Finance www.AssignmentPoint.com
  81. 81. Lease financing is one of the most convenient long term sources of acquiring capital machinery and equipment. It is a very popular scheme whereby a client is given the opportunity to have an exclusive right to use an asset, usually for an agreed period of time, against payment of rent. Of late, the lease finance has become very popular in almost all the countries of the world. An obvious advantage of the lease is to use an asset without having to buy it. The lessee is obligated to make lease payments until the expiration of the lease agreement, which corresponds to the useful life of the asset. In a capital scarce economy like ours, Lease Financing is suitable for firms to acquire Capital Machinery, Equipments, Medical Instruments, and Automobiles etc. And thereby employ their own resources more advantageously in some other investments. Lease financing also helps a firm to reap significant economic benefit through tax saving and by reducing the risk of the equipments becoming obsolete due to the technological advancement. 5.11.3House Building / Apartment Loan Scheme Loans allowed to individual/enterprises for construction of house (residential or commercial) fall under this type of advance. The amount is repayable by monthly installment within a specified period. Such advances are known as Loan (HBLGEN). Loans allowed to our Bank Employees for purchase /construction of house shall be headed Staff Loan (HBL-STAFF). 5.11.4 Small & Medium Enterprise (SME) www.AssignmentPoint.com
  82. 82. “Small and Medium Enterprise Credit Scheme” has been formulated as follows. It may also be mentioned that USAID has approved our bank to receive their guarantee facility to lend money to Small and Medium business Houses. 50% of losses, if any, be paid by USAID 5.11.4.1 Small Enterprise Small Enterprise refers to those enterprises: -where goods are produced, recycled, repaired or traded in traditional way; -where total bank investment is limited to Tk.250,000; -where 10 or less workers are engaged on wages or commission basis. 5.11.4.2 Medium Enterprise Medium Enterprise refers to those enterprises:-Where goods are produced, recycled, repaired or traded applying some capital machinery; -Where 20 or less people are engaged on wages or commission basis; -Where total bank investment does not exceed Tk.75, 00,000. -The net fixed assets (excluding land and buildings) of borrowers may not exceed Tk. equivalent of US $250,000. 5.11.4.3 Loan Ceiling www.AssignmentPoint.com
  83. 83. 1. 2. For small enterprise : Maximum Tk.2, 50,000/For medium enterprise : Maximum Tk.75, 00,000/- No loan proposal for less than Tk.1, 00,000/- be entertained. Purpose Working capital; Delivery Van / Transport for business purpose; Capital machinery; Refurbishing office/Business premises. 5.11.4.5 Mode of Finance 1. Cash Credit (Hypo/Pledge) 2. Hire purchase/ Lease Finance 3. Term Loan. 5.11.5 Consumer Credit Scheme In order to provide financial assistance to the limited income group for raising their standard of living by acquiring domestic durables like Refrigerator, T.V., Washing machine, Furniture, Computer, Motor Car, etc., we have introduced a Scheme to improve the quality of life particularly of the fixed income earner of the society and this scheme is known as Consumer Credit Scheme. 5.11.6 Eligibility for Credit www.AssignmentPoint.com
  84. 84. The persons having confirmed/permanent job in any one of the following organizations and age between 20 to 50 years are eligible for availing of Credit facilities under the Scheme.  Government Organization  Semi-Government and Autonomous Bodies  Banks, Insurances Companies or any other Financial Institutions  Armed Forces, B.D.R, Police and Ansar  Private Organizations having corporate structure  Teachers of Universities, Colleges and Schools Besides the above, Professionals like Doctors, Engineers, Architects, Lawyers, Journalists, Chartered Accountants, Self Employed Business Executives are also eligible for enjoying credit facilities under this scheme subject to the providing of Bank Guarantee or Insurance Guarantee for the amount of Credit. 5.12 Consumer Credit Products o Household Durable Loan o Car Loan o Doctors Loan o Advance Against Salary o Any Purpose Loan o Education Loan o Travel Loan o Marriage Loan o CNG Conversion Loan o Hospitalization Loan www.AssignmentPoint.com
  85. 85. 5.13 Hire Purchase Hire Purchase is a type of installment credit under which the Hire Purchase agrees to take the goods on hire at a stated rental, which is inclusive of the repayment of Principal as well as interest for adjustment of the loan within a specified period. 5.14 Advance against Share In order to contribute to the development of the Capital Market of the country Prime Bank Limited extends credit facilities against pledge of Shares to the individuals as well as to the Member of DSE & CSE. 5.16 Services: Prime Bank Ltd. 5.16.1 Master Card Prime Bank Limited obtained Principal Membership of Master-Card International in the month of May 1999. Within a period of 6 months, the bank successfully launched Master Card-Credit Card which created a new dimension in its customer service and consumer financing. The Special feature of the Prime Bank Master Card is that its bears the card holder’s photo on the card, which is the first of its kind in Bangladesh and adds security against misuse. Prime Bank Limited issues 4 types of cards. These are Gold Local & International and Silver Local & International. Local cards can be used in Bangladesh only. 5.16.2 One Stop Utility Services Scheme www.AssignmentPoint.com
  86. 86. Like any other country of the world, the people living in the urban areas of our country lead a very busy life. Time is very valuable to them. Despite this, they are to waste their valuable time at the counter of different Banks and other Institutions for payment of their monthly bills of different utility services like Electricity, Telephone, Water, Gas etc. They, as such, face enormous difficulties for payment of their monthly bills in time. Such inconveniences of the urban people can be removed by making an arrangement to collect all the bills of various utility services at One Point. Scope of Services With this end in view, Prime Bank Limited has introduced a Scheme entitled “ONE STOP UTILITY SERVICES SCHEME”. The scheme is designed to provide all the required services to the customer in making payment of their following bills on their behalf from the counter of the Bank: • To pay Electricity Bills • Cash deposit in his/her account at any branch of the Bank irrespective of location. • Cash deposit in other's account at any branch of the Bank irrespective of location. • Transfer of money from his/her account with any branch of the Bank. Any amount can be deposited or transferred under Prime Line. In the system, however, at present there is a limit for cash withdrawal through bearer or by account holder himself. 5.16.3 Online Branch Banking Service ONLINE BRANCH BANKING SERVICE is designed to serve its valued clients. Under this system, you shall be able to do the following type of transactions:  Cash withdrawal from your account at any branch of the Bank.  Deposit in your account at any Branch of the Bank.  Transfer of money from your account to any other account with any Branch of the Bank. www.AssignmentPoint.com
  87. 87. Capter-6 Comparative Scenario With Competitive Bank www.AssignmentPoint.com
  88. 88. 6.1 Interest Rate A comparative picture drawn on interest rate on various deposit & loan product- Figure 8: Interest Rate for SB A/C www.AssignmentPoint.com
  89. 89. Figure 9: Interest Rate for FDR A/C (1) Figure 10: Interest Rate for FDR A/C (2) www.AssignmentPoint.com
  90. 90. Figure 11: Interest on various Credits From the above Graph it has been observed that Banks are offering a very close rate regarding Deposit & Loans. 6.2 Product & Services In case of Deposit product/scheme BCBL are not diversifying their product/special scheme to the client who are belong to various social ground/culture/group etc. The competitive banks innovating product to attract the new customers as well as to satisfy www.AssignmentPoint.com
  91. 91. existing client. And there a huge opportunity for BCBL to launch new featured product to attract more customer. In our country most of the Bank providing Consumer Credit, and the approximate recovery rate is more or less 98% from which a Bank can earn a huge return. But at present BCBL not operating in that section and need to take that point in a great consideration. Additionally on the ground of services area BCBL are on back footed comparing to other bank. BCBL providing only general services. But today customer needs are growing enormously. So BCBL needs to expand its service area like Credit Card and ATM Card and online banking operations for clients, Merchant Banking etc. BCBL are on Back foot compare to other Bank on following factor- 1. Retail banking 2. Introduce special corporate scheme 3. ATM 4. Credit card and debit card system 5. Online Banking 6. Merchant banking 6.3 Opportunity should pick up by BCBL  Opportunity in retail banking lies in the fact that the country’s increased population is gradually learning to adopt consumer finance. The bulk of our population is middle class. Different types of retail lending products have great appeal to this class. So a wide variety of retail lending products has a very large and easily pregnable market.  A large number of private banks operating into the market in the recent time. In this www.AssignmentPoint.com
  92. 92. competitive environment BCBL must expand its product line to enhance its sustainable competitive advantage. In that product line, they can introduce the ATM to compete with the local and the foreign bank. They can introduce credit card and debit card system for their potential customer.  In order to reduce the business risk, BCBL has to expand their business portfolio. The management can consider options of starting merchant banking or diversify into leasing and insurance sector.  The activity in the secondary financial market has direct impact on the primary financial market. Banks operate in the primary financial market. Investment in the secondary market governs the national economic activity. Activity in the national economy controls the business of the bank.  In addition of those things, BCBL can introduce special corporate scheme for the corporate customer or officer who have an income level higher from the service holder. At the same time, they can introduce scheme or loan for various service holders. And the scheme should be separate according to the professions, such as engineers, lawyers, doctors etc. www.AssignmentPoint.com
  93. 93. Capter-7 Future Prospect, Recommendation And Conclusion www.AssignmentPoint.com
  94. 94. 7.1 Future Prospect Amid many challenges, adverse economic conditions and market scenario during the year, the Bank maintained its growth trend through the indicators like, profitability, deposit mobilization, asset creation and profitability, deposit mobilization, asset creation and network expansion. Basing on convincing reasons, we strongly believe that in the coming years also, the Bank strongly believes that in the coming years also, the Bank would be able to attain its earning capacity at an accelerated growth rate. Bank is also marking a headway for introduction of Credit Card and ATM Card and online banking operations for clients, bank intends to enter into agreement with reputed Exchange Companies in USA, UK and UAE for safe and steady flow of foreign remittances into the country from Bangladesh expatriated working at those places. We can safely say that we have well positioned ourselves in the banking arena of Bangladesh with diversified products and financial services to seize the opportunities. New custom-friendly products are being evolved in the days to come. 7.2 Recommendation The banks are actually service organizations. The main objectives of the world famous and successful banking organizations are to making of profit through addressing the clients time to time with new pieces of service instruments. However my little experience earned through this internship program took me to customers varying demands. I had several frank discussions with the clients and officials, which has helped me to know about the aforesaid findings and draw the following recommendation. www.AssignmentPoint.com

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