Dbbl

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Global economic and financial crisis was showing sign of recovery in 2010. Bangladesh Bank
pursued supportive monetary policy seeking to maintain adequate credit flow for sustained high
real output while containing inflation within tolerable moderate levels.
During most of the year interest rates on deposits declined due to excess liquidity in the market.
The interest rates on loans were also lower during 2010. At the end of the year, however, interest
on deposits started rising following sudden liquidity crises trigerred by higher CRR requirement
and lower REPO facility provided by Bangladesh Bank. Foreign exchange market of the country
was relatively table in 2010. However, at the end of the year, there was pressure on forex market,
the reasons may be attributed to slower remittance flow and higher import payments following
increase of prices of some major commodities in international market.
From the onset, the focus of the bank has been financing high-growth manufacturing industries
in Bangladesh. The rationale being that the manufacturing sector exports Bangladeshi products
worldwide. Thereby financing and concentrating on this sector allows Bangladesh to achieve the
desired growth. DBBL's other focus is Corporate Social Responsiblity (CSR). Even though CSR
is now a cliche, DBBL is the pioneer in this sector and termed the contribution simply as 'social
responsiblity'. Due to its investment in this sector, DBBL has become one of the largest donors
and the largest bank donor in Bangladesh. The bank has won numerous international awards
because of its unique approach as a socially conscious bank.
DBBL was the first bank in Bangladesh to be fully automated. The Electronic-Banking Division
was established in 2002 to undertake rapid automation and bring modern banking services into
this field. Full automation was completed in 2003 and hereby introduced plastic money to the
Bangladeshi masses. DBBL also operates the nation's largest ATM fleet and in the process
drastically cut consumer costs and fees by 80%. Moreover, DBBL choosing the low profitability
route for this sector has surprised many critics. DBBL had pursued the mass automation in
Banking as a CSR activity and never intended profitability from this sector. As a result it now
provides unrivaled banking technology offerings to all its customers. Because of this mindset,
most local banks have joined DBBL's banking infrastructure instead of pursuing their own.
1.1 Introduction

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Preparing report in each semester is a mandatory item of BBA program, in BUBT. From where
this report is done. This is a Group report. We have been working at together for collecting data
and information for preparing this report from August 24, 2011 to September 02, 2011 and
supervised by experienced executives and officers of Dutch-Bangla Bank to have general idea
about the organizational culture of a private organization in Bangladesh. The standard procedure
for the long, formal report is followed here as par our teacher’s instruction.
In the Banking Industry, Dutch Bangla Bank Ltd. is trying to give the better service and proper
securities to its customers. But for running a business like Banking, it always faces the economic
force, which is really unavoidable. Sometime this economic forces force the Bank to take change
in their regular activities. By this report we will familiar to those possible change and strategies
which a Bank may take. Some recommendations are given in the recommendation part of this
report, which may help to any Bank to take proper decision.
This report has been asked to prepare for analyzing Environment influence on Bank industry, A
study on Economic force. We are focusing Dutch Bangla Bank Ltd (DBBL). This report is
covered by the different information of their Annual report of 2010 and 2009. We also collect
some important current news from their website and some theoretical information from different
kinds of Books (list is given in reference section). Hopefully this report can cover the
Environmental influence of Dutch Bangle Bank Ltd.
1.4 Scope of the Report
1.2 Background of the Report
1.3 Significance

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1.5.1. Broad/ General:
The major objective of this report is to identify & analyses for analyzing Environment influence
on Bank industry, a study on Economic force
1.5.2. Specific objectives:
“Is Dutch Bangla Bank Ltd. an Emerging Company In the Banking Sector?”
 To know the operation system of Dutch Bangla Bank Ltd (DBBL) and to give an
idea about how can manage economic force.
 To know how economic policy change the organizational environment
 To evaluate DBBL’s competency to adopt with new policy/economic force.
 To evaluate the benefit or loss of DBBL’s for economic force.
 To show how the financial condition of DBBL is affected by economic force
Methodology can properly refer to the theoretical analysis of the methods appropriate to the field
of study or to the body of the methods and principles particular to a bench of knowledge. The
methodology used by the study requires a systematic way from selection of the topic to
preparation of the report. The overall process of methodology given in the followings:
1.6.1. Type of research: Both Exploratory and Descriptive research methods are used in
here .
Research design:
The purpose of the study is to investigate overall scenarios about contributions,
potentiality, profitability and risks of DBBL which is created for economic force. Therefore, both
exploratory and descriptive research approach are selected.
1.5 Objectives
1.6 Methodology

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1.6.2. Sources of Data:
This report is based on both primary & secondary source of information. For
theoretical development of this research paper the data has been collected from the various
sources like different publications, library sources, books, articles, etc.
1.6.2.1. Primary: Customer survey, observation, in-depth interview were conducted
to collect primary data.
1.6.2.2. Secondary: Annual Report 2010, Annual Report 2009, and visiting the
DBBL’s website “www.dutchbanglabank.com” to collect secondary data.
1.6.3. Data collection procedure:
1.6.3.1. Secondary: The secondary data collection procedure includes the followings:
Relevant documents that the officers concerned provide.
Prospectus, Publications, Brochures, Magazine and newspaper.
Internal records and vast number of data collected from the internet and Company
Website.
1.6.3.2. Primary: The primary data collection procedure includes the followings:
Discussion with officers of Dutch-Bangle Bank.
Observation of practical work of the responsible officers of Dutch-Bangle Bank.
Discussion with supervisor.
Face to face conversation with the Customer Group.

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Researcher administrated type of well structure questionnaire is used for primary data collection. Both
open ended & close-ended questions are included. Average time for conducting individual questionnaire
survey was 20 minutes.
1.7.1 Size: 2 page an a4 size paper.
1.7.2. Administer time: Average 20 minutes per questionnaire.
1.7.3. Type: Both close ended and open ended questions are used in the questionnaire.
1.8.1. Target Population: The upper level employee of every department is our targeted population
1.8.2. Sample element/units: Individual manager and executive (finance/marketing etc.)
1.8.3. Sample size: 10 sample size. 2 form Finance department, 2 from marketing department, 2 from
HRM department, 4 forms IT department.
1.8.4. Sample Frame: No well structured sampling frame was found.
1.8.5. Sampling Method: Non probability convenience sampling method (Mall intercept) & non
probability judgmental sampling method was used for survey officials & clients of Duch Bangla Bank
Ltd.
1.7 Questionnaire design
1.8 Sampling plan

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Analyses the performance is very sensitive and competitive by its nature. Therefore, data of this report
may not available. The interviewees may not disclose accurate facts and figures about foreign exchange
and other activities. However, we faced the following problems during the study.
 Insufficiency of valuable data and information
 Lack of proper books, journals etc.
 Lack of experience
 Lack of time and resources.
 Lack of perfect co-operation.
 Lack of time for conducting a large scale survey.
 Lack of customer co-operation.
 The research only covers few of the customers of Dutch Bangla Bank Ltd in Dhaka city.
Best efforts have been made to make the report analytical, information and comprehensive one. In spite of
much better environment, we had to face various limitations those were uncontrollable. DBBL covers a
wide area. By this limited time it was not possible for us to know the all activities of the DBBL. We just
observed what they were doing and how. Many procedural matters were written from own observations
which may also vary from person to person.
1.9 Limitations of the Report

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FROM THE DESK OF THE MANAGINGDIRECTOR
OVERVIEW
It is gratified for me to record my observations on the performance of the Bank for the year
2010. It was another successful year for DBBL. At this juncture of passing 15 years of successful
operation, I sincerely offer my heartfelt gratitude and congratulate our valued clients, patrons,
wellwishers and honorable shareholders for their active support, co-operation and strong
association with us without which it would not be possible for us to take the Bank to the stage of
today's stratum.
HIGHER BUSINESSANDPROFITGROWTH DESPITE COMPETITIVE
MARKET CONDITION
DBBL was successful in achieving substantial growth in business and profit during the year
under review. The deposits of the Bank increased by 22.8%, loans & advances increased by
39.8%, while import and export business increased by 65.1% and 78.6% respectively. During the
year under review, operating profit increased by 55.7% and net profit after tax increased by
76.0% from Taka 1,137.7 million to Taka 2,002.3 million. Lower cost of fund resulting from
improved deposit mix, higher net interest income, higher non-interest income mainly from fees
and exchange gains from foreign trade business, income from IT & card services and, other
value added services contributed to higher profit despite higher investment cost in HR and IT
platform, and expansion of Branch, Fast Track and ATM network.
POTENTIALFOR FUTURE GROWTH
Though the expenses in HR, IT network, expansion of distribution network through branches,
establishment of ATM booths and Fast Tracks apparently contained our profit growth in 2010,
however it will substantially improve our capacity to deliver unique value to our customers by
improving productivity, distribution and communication network and strengthening IT platform
to provide faster information and customer service particularly for SME and retail customers.
STATUS OF DEPOSITAND ADVANCES

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In 2010, all out efforts were continued to diversify and improve the deposit mix to bring down
weighted average cost of fund. To increase number of deposit accounts, intensified campaign
launched earlier continued in 2010 to open new accounts. The campaign was strongly supported
by expanding branch and ATM network, introducing Fast Track and increasing promotional
activities. SME and
Retail banking divisions were further reinforced in 2010 to expand business in both retail
deposits and retail/SME lending. Risk management system was further streamlined to improve
quality of assets and protect long term interest of depositors and shareholders.
The deposit grew by Taka 15,456.2 million (22.8%) in 2010 from Taka 67,788.5 million to Taka
83,244.8 million. Deposit mix improved significantly. As a result, weighted average cost of fund
declined to 4.41% in 2010 from 6.53% of the previous year. Loans and advances stood at Taka
67,657.7 million
(39.8%) at the end of 2010 from Taka 48,411.0 million in 2009. The Bank continued to grow and
diversify its portfolio in 2010 to have a diversified client base and portfolio distributed across the
sectors to reduce client specific and industry specific concentration and to reduce overall
portfolio risk.
Considering future market direction and to capitalize on our robust IT platform and strongest
ATM and
Fast Track network, a number of retail products and
SME products aimed at specific target groups were launched in 2010 to augment fee income and
improve yield and spread on total portfolio. Because of regulatory restrictions and market
competitions, weighted average rate of return on loans & advances decreased to 11.55% in 2010
from 12.96% in 2009.
Classified loan as a percentage of portfolio remain unchanged at 2.46% as of 31 December 2010.
However, full provision was made against these classified loans.

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STRONGCAPITALADEQUACY RATIOMAINTAINED
DBBL's regulatory capital as on December 31, 2010 stood at Taka 9,125.9 million. As on
December 31, 2010, capital adequacy ratio was 9.64% under Basel II, as against Bangladesh
Bank's minimum requirement of 9.00%.
CUSTOMER SERVICE ANDONLINE BANKING
DBBL continued to be a customer focused, need based and solution-driven Bank. Our products
and services are strongly supported by IT infrastructure and online banking facilities, which are
upgraded and expanded on a continuous basis. Four hundred (400) units of ATM were installed
in 2010 to increase the number of ATM units to 1,100 at the end of 2010 along with 50 new Fast
Tracks. We are providing any branch anytime banking services to our clients 24 hours a day and
365 days a year.
SOCIALCAUSE
Dutch-Bangla Bank Limited dreams of better Bangladesh. It believes that "Profits alone" do not
hold a central focus in the Bank's operation; because "man does not live by bread and butter
alone". With this mission, Dutch-Bangla Bank Limited believes that only profit can not be the
last word for any business entity as neither society without business nor business without society
is likely to bring about any sort of development in true sense. From a common perspective,
Social Cause
Programs may be defined as an instrument to make business more committed towards social
needs and national development through ethical, legal and commercial conduct. DBBL has
always aspired to the highest standards of conduct, recognizes its wider obligation to society and
believes that there is a strong link between Social Cause Programs and long term success. DBBL
since its inception was active in various social activities which increased manifold over the past
few years.
OUTLOOK
Progressively, globalization is forcing countries and businesses operating within them to re-
evaluate their comparative advantages and to adjust to a world in which emerging markets
compete not only in terms of cost but also in skills and technology. The globalization of the
services industry, spurred on by new technology and the rapid fall in communication cost, will
afford huge opportunities but also pose significant challenges to many areas of economic

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activities, including financial services. The global financial crises that originated in 2008 is
beginning to stabilize showing the signs of recovery.
We will remain cautious about the development in global and Bangladesh economy.
Basing on its achievements, DBBL's priority for the next year is to continue to implement its
growth strategy with particular emphasis on improving deposit mix and reducing cost of fund. It
will achieve this by being distinctive, re-enforcing its brand values of trust and integrity in all its
dealings with customers. The strategy will be strongly supported by best IT and ATM network of
the country. It builds on DBBL's strength and it addresses the areas where further improvement
is considered both desirable and attainable.
DBBL aims to be the country's leading commercial Bank. In this context, leading means
preferred, admired and dynamic, and being recognized for giving the customer a fair deal. DBBL
will always strive to secure and maintain a leading position in the country. DBBL will
concentrate on growing earnings over the long term at a rate which will placid favorably when
compared with its peer banks. It will also focus on investing in its delivery platform, its
technology and its people.
HUMAN RESOURCES ANDORGANIZATIONALDEVELOPMENT
In support of its strategy, Dutch-Bangla Bank Limited focuses on attracting, developing and
motivating the very best individuals and ons encouraging talent internally. DBBL continues to
endeavor to ensure that employees' engagement with the business is maximized as this is
beneficial to shareholders, colleagues and customers alike.
DBBL recruits people from a broad cross-section of society. A high quality and competent
human resource is crucial to continued growth and success of the Bank, which can be achieved
by improving skill, knowledge and productivity of the employees. Keeping this in view, we
emphasize on the human resources development through imparting trainings both in home
country as well as aboard. In order to provide better and faster services to the clients by a team of
skilled work forces, we are offering healthy working environments and competitive
compensation package.

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KEY ISSUES ANDCHALLENGES IN 2011
Our key objective in 2011 is to achieve strong growth in business comprising deposit, loans and
advances, import and export driven by better and faster customer services. Particular emphasis
will be given on improving deposit mix and reducing cost of fund by increasing number of new
accounts.
Profitability will be increased by business growth and by increasing productivity of resources.
Customer service will be improved by upgrading our online banking system, expanding
distribution network and offering new products to provide a unique value to our customers.
Sincere thanks and heartfelt gratitude are due to our respected shareholders, valued customers,
patrons and well-wishers for their continued wholehearted supports and advices in all our
development programs. We should like to pay our special thanks and gratitude to the
Government Agencies, Bangladesh Bank, Securities and
Exchange Commission, Office of the Registrar of Joint Stock Companies and Firms, Dhaka
Stock
Exchange and Chittagong Stock Exchange for their co-operation and support for the
development of the Bank. The Management is expressing its sincere thanks and gratitude to the
Members of the Board of Directors for their prudent policy guidelines in achieving the Bank's
cherished goal. Thanks to my colleagues of all levels for their sincere efforts in uplifting the
Bank's image by rendering distinctive services to our valued clients.

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Dutch-Bangla Bank Limited (DBBL) is a Bangladeshi-European private joint venture scheduled
commercial bank, incorporated in Bangladesh in the year 1995. This public limited bank
commenced its formal operation from June 3, 1996. The Netherlands Development Finance
Company (FMO) of the Netherlands is the international co-sponsor of this bank with 30% equity
holding. Out of the rest 70%, 60% equity has been provided by prominent local entrepreneurs
and industrialists and the rest 10% shares is the public issue. During the initial operating year
(1996-1997), the bank received skill augmentation technical assistance from the Amro Bank of
the Netherlands (ABN). Starting with one branch in Dhaka, DBBL now has expanded to twenty
four branches including thirteen branches outside of the capital. To provide client services all
over Bangladesh, it has established a wide correspondent banking relationship with a number of
local banks, and in order to facilitate international trade transactions, it has arranged
correspondent relationship with large number of international banks which are active across the
globe. Moreover, DBBL has introduced ATM cards and Internet banking to ensure the
customer’s freedom to choose his/her own banking hours.
Dutch-Bangla Bank started operation is Bangladesh's first joint venture bank. The bank was an
effort by local shareholders spearheaded by M Sahabuddin Ahmed (founder chairman) and the
Dutch company FMO.
From the onset, the focus of the bank has been financing high-growth manufacturing industries
in Bangladesh. The rationale being that the manufacturing sector exports Bangladeshi products
worldwide. Thereby financing and concentrating on this sector allows Bangladesh to achieve the
desired growth. DBBL's other focus is Corporate Social Responsibility (CSR). Even though CSR
is now a cliche, DBBL is the pioneer in this sector and termed the contribution simply as 'social
responsibility'. Due to its investment in this sector, DBBL has become one of the largest donors
and the largest bank donor in Bangladesh. The bank has won numerous international awards
because of its unique approach as a socially conscious bank.
DBBL was the first bank in Bangladesh to be fully automated. The Electronic-Banking Division
was established in 2002 to undertake rapid automation and bring modern banking services into
this field. Full automation was completed in 2003 and hereby introduced plastic money to the
2.1 About the company

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Bangladeshi masses. DBBL also operates the nation's largest ATM fleet and in the process
drastically cut consumer costs and fees by 80%. Moreover, DBBL choosing the low profitability
route for this sector has surprised many critics. DBBL had pursued the mass automation in
Banking as a CSR activity and never intended profitability from this sector. As a result it now
provides unrivaled banking technology offerings to all its customers
Dutch-Bangla bank dreams of better Bangladesh, where arts and letters, sports and athletics,
music and entertainment, science and education, health and hygiene, clean and pollution free
environment and above all a society based on morality and ethics make all our lives worth living.
DBBL’s essence and ethos rest on a cosmos of creativity and the marvel – magic of a charmed
life that abounds with spirit of life and adventures that contributes towards human development.
Dutch-Bangla Bank engineers enterprise and creativity in business and industry with a
commitment to social responsibility. Profits alone do not hold a central focus in the bank’s
operation, because man does not live by bread and butter alone.
Dutch-Bangla Bank believes in its uncompromising commitment to fulfill its customer needs and
satisfaction and to become their first choice in banking. Taking cue form its pool esteemed
clientele, Dutch-Bangla Bank intends to pave the way for a new era in banking that upholds and
epitomizes its vaunted marques “Your Trusted Partner”.
2.2 Vision
2.3 Mission
2.4 Core Objectives

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THE BOARD CHAIRMAN
Mr. Zahid Hossain Khan
DIRECTORS
Mr. Sayem Ahmed
Mrs. Frey-Tang Yuen Mei, Barbara : Nominee of Ecotrim Hong Kong Limited
Mr. Md. Fakhrul Islam : Elected from General Shareholders' Group
Dr. Irshad Kamal Khan : Independent Director
Dr. Syed Fakhrul Ameen : Director from the Depositors
Mr. Chowdhury M. Ashraf Hossain : Director from the Depositors
Mr. K. Shamshi Tabrez : Ex-officio Director (Managing Director)
THE COMMITTEES OFTHE BOARD
1. Executive Committee
Mr. Sayem Ahmed : Chairman
Mr. Zahid Hossain Khan : Member
Mr. K. Shamshi Tabrez : Member
2. Audit Committee
Mr. Zahid Hossain Khan : Chairman
Mr. Sayem Ahmed : Member
Dr. Irshad Kamal Khan : Member
Chairman, Dutch-Bangla Bank Foundation & Founder Chairman, Dutch-Bangla Bank
Mr. M. Sahabuddin Ahmed
2.5 The Board and its Committees

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Managing Director
2.6 Organogram of DBBL

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Savings, investments, employment generation, productions, distribution and consumptions are
essential part of any economic system. The Bank being a financial intermediary plays a
significant role in this process by mobilizing savings & other resources, allocating such resources
to productive investments, local & international trades and consumptions. In the process the
Bank is directly or indirectly creating a lot of wealth by accelerating economic activities &
growth. By offering its unique products & services the Bank is engaged in maximizing savings,
investments, productions, trading, employment, consumptions etc. to maximize economic growth
and welfare of the society. Therefore banking company is holding a key position in economic
and social development of a country.
DBBL is a corporate citizen. It cannot act on its own without its stakeholders. The stakeholders
as a whole help, direct and monitor the Bank to perform its operations in an effective way to
create and maximize value for the economy and society. Shareholders provide the vital equity
capital, depositors & lenders put their money in the Bank, borrowers take the credits for
production, trading or consumptions, employees put their services to serve the customers, and
government, Bangladesh Bank and Securities and Exchange Commission provide legal &
regulatory framework, infrastructure, economic & business environment etc. to ensure smooth
operations of banking activities with transparency and accountability.
With the support & resources from various stakeholders, DBBL conducts its businesses to
provide services to the customers and society at large and in the process creates and maximizes
value for all its stakeholders in a fair, transparent and ethical way. Maximization of profit cannot
be the only objective of the Bank, rather maximizing benefits & value for all stakeholders in a
fair and balanced way thereby maximizing welfare of the economy & society as a whole is the
objective of DBBL. However, profit is also important to give satisfactory returns to all the
stakeholders and to ensure sustainable operations, growth and longterm solvency of the Bank
which in turns enable the Bank to contribute in a greater way to the economy & society.
2.7 Economic contribution

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As DBBL is dependent on its stakeholders to continue its operation and wealth creation
activities, therefore, wealth created by the Bank is also distributed to its various stakeholders.
Shareholders get dividends, depositors get interest, employees receive salaries and government
gets tax, VAT etc.
Measures taken by DBBL to maximize value for its stakeholders and to increase its contribution
to the economy & society in a sustainable way. DBBL as a responsible citizen has taken
effective measures to sustain its operations in a sustainable way thereby to increase its
contribution to the economy & society. DBBL has undertaken due process, procedures and
systems in compliance with best practices in corporate governance, risk management, regulatory
requirements, environmental issues, staff welfare, customer services and business practices to
strengthen its ability to serve the stakeholders and society increasingly in a greater way.

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Listing on Stock Exchanges
DBBL is offering Products and Services in three main forms:
Deposit
Term Deposit
Loan and Advances
1. DEPOSIT
Under Deposit the following products are available:
Savings Deposit Account
Current Deposit Account
Short Term Deposit Account
Resident Foreign Currency Deposit
Foreign Currency Deposit xi
Convertible Taka Account
Non-Convertible Taka Account
Exporter's FC Deposit (FBPAR)
Current Deposit Account-Bank
Short Term Deposit Account-Bank
2.9 Useful information of DBBL
2.10 Products and Services of DBBL

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2. TERM DEPOSIT
Under Term Deposit the following products are offered:
Monthly Term Deposit
Term Deposit 3 Months
Term Deposit 24 Months 1 Year Payout
Term Deposit 36 Months 6 Months Payout
Term Deposit 36 Months 1 Year Payout
Term Deposit above 36 Months
Monthly Term Deposit Banks
Term Deposit 3 Months Banks
1 Month TD NFCD
Months TD NFCD
6 Months TD NFCD

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3. LOAN AND ADVANCE
The followings are known as Loan and Advances products:
Loan against Trust Receipt
Transport Loan
Consumer Credit Scheme
Real Estate Loan (Res. & Comm.)
Loan against Accepted Bill
Industrial Term Loan
Agricultural Term Loan
Lease Finance
Other Term Loan
FMO Local Currency Loan for SME
FMO Foreign Currency Loan
Cash Credit (Hypothecation)
Small Shop Financing Scheme
Overdraft

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DBBL'S IT INFRASTRUCTURE:PRESENTAND FUTURE
Since the start of its operation, under the vision of Mr. M. Sahabuddin Ahmed -the founder
chairman of the Bank, Dutch-Bangla Bank has been continuously striving towards bringing
world-class technology driven banking services, and conveniences to its customers. As a result,
DBBL is the first and only Bank in Bangladesh to invest more than Taka 2 billion in developing
the largest ICT infrastructure in the banking sector of the Country.
OVERVIEW
DBBL owns and operates the largest ATM network of the Country comprising of 700 ATMs as
of December 2009. The Bank is also the leader in POS terminal and internet banking services.
As a technology driven Bank, DBBL has implemented world reputed online banking software at
all its 79 branches and 10 SME centers. DBBL also provides the following ancillary services:
Any Branch banking;
Online ATM/POS service;
Internet banking service; and
SMS and Alert banking service.
The Bank also implemented Online Synchronous Disaster Recovery Site (DRS) to provide
uninterrupted and reliable banking convenience to the valued customers. DBBL's Synchronous
DRS is the first of its kind in Bangladesh. This makes DBBL the only Bank in the Country that
can best responds to natural disaster recovery.
MOBILE BANKING
To provide banking services to the remote customers of the Country, DBBL plans to reach them
by phone. All unbanked customers having a phone number will be able to get basic banking
services like cash withdrawal, cash deposit, loans, bill payment, local & foreign remittance etc.
from all over the Country very cheaply. Even all Government payments, corporate salaries can
be made through this service almost at no cost. Just like the DBBL ATM network, DBBL's
version of mobile banking will be affordable, secure and ubiquitous. It is centered around
providing the majority of the rural population access to a wide array of modern banking services.
2.11 Automation

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The mobile banking system will be an 'open' system (similar to its ATM network), which will
give third party service providers unhindered access. DBBL's current system already has the
capability of providing mobile banking services. The Bank is in the process of obtaining
necessary permissions from regulatory bodies and will launch a nationwide mobile-banking
revolution within 1 month of receiving the regulatory permission.
BANGLADESH AUTOMATEDCLEARINGHOUSE (BACH)
Bangladesh Bank is going to introduce first paperless Automated Clearing House in the Country
which is called as Bangladesh Automated Cheque Processing System (BACPS) and Bangladesh
Electronic Fund Transfer Network (BEFTN). Both the systems will be implemented under
Bangladesh Automated Clearing House (BACH) project. These projects are being implemented
under several reform measures taken by Bangladesh Bank to improve the safety and efficiency in
the payment system. DBBL has always been a leader in complying to the requirements of the
projects, like, cheque personalization, Magnetic Ink Character Recognition (MICR) encoded
cheque book issue, System Integration Test (SIT) with Bangladesh Bank's live & DR sites.
DBBL was the first Bank to conduct a successful live test with Bangladesh Bank. The project is
progressing smoothly and expected start full fledged operation soon.
NEXT-GENERATION CARDS
All the distribution channels are EMV-compliant. The EMV security policy has been introduced
by Europay, MasterCard and VISA jointly to protect capturing card data and duplication of a
card. DBBL is the first Bank in Bangladesh to ensure such security for our valued customers.
DBBL has also introduced EMV compliant chip based Credit Cards for the first time in
Bangladesh -which is the most secure card in the world. The ATM / POS network of the DBBL
accepts the following cards: EMV compliant chip cards of all the banks in the world; Non-EMV
Visa & MasterCard cards of all the banks in the world; DBBL's proprietary cards (Nexus); and
Proprietary cards of all the partner banks in Bangladesh.

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ATM
DBBL has put its level of innovation and standard of customer support to a new height by setting
another milestone in the history of banking sector by adding two units of Mobile ATM booths to
its existing ATM network. DBBL has become the first Bank in the Country to provide such
unique service and convenience to the customers. The DBBL Mobile ATM Booth, which is
outfitted in a custom-made van provides free anywhere anytime banking services in short notice.
DBBL has allowed other banks to join its ATM/POS network. Partner banks are charged a
subsidized Tk.10 by DBBL (but partner banks may levy additional charges for end-consumer).
Customers of the following partner banks in Bangladesh are enjoying access to the DBBL
ATM/POS network:
-Mutual Trust Bank Limited
- Commercial Bank of Ceylon
- Standard Chartered Bank
- Bank Asia Limited
- National Credit & Commerce Bank Limited
- United Commercial Bank Limited
- South East Bank Limited
- The Prime Bank Limited
- The City Bank Limited
- First Security Bank Limited
- Mercantile Bank Limited
- Trust Bank Limited
- Jamuna Bank Limited
- Shahjalal Islami Bank Limited
- Janata Bank Limited
- Sonali Bank Limited
- National Bank Limited

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GREEN IT
Dutch-Bangla Bank has always been careful about environment. DBBL has taken initiatives to
make its IT infrastructure a "Green IT". Environment friendly options like virtualization, power
management and proper recycling habits towards certifying our data centers as "Green" are under
process.
CALL CENTER
Considering the growing number of customers, card holders & transactions, DBBL has taken
steps to setup a Call Center. It will be a world renowned Cisco hardware-based call center
comprising of all the services a call center can provide, e.g, Interactive Voice Response (IVR) by
virtue of which the customer will be able to choose his options using the keypads of a touch or
cell phone and listen to the responses related to his account or card or transactions from the
system. The hardware has already been setup. At present, the integration with the existing
systems are in progress.
UP GRADATION OF CORE BANKINGSYSTEMS & ATM SWITCHING
SYSTEMS
The number of branches of DBBL is growing steadily every year. The customer base is growing
everyday. To cope with the huge volume of transaction and provide the customers the best
services using latest technology the Bank has decided to upgrade its core banking system and
other related software & hardware. The Board of Directors has already approved required budget
and international tender has already been floated. The evaluation of the submitted proposals are
under process.

26
DBBL'S FUTURE IT PROJECTS
ATM EXPANSION
Dutch-Bangla Bank has planned to install another 1000 ATMs by the end of 2010 mainly to
cover rural areas.
REORGANIZATION ANDREDESIGN OFDELIVERYCHANNELS
Dutch-Bangla Bank is redesigning the delivery channels to make the entire system more efficient
and faster for the end consumers. After the redesign, clients will experience more faster and
more personalized service.
E-PAYMENTGATEWAY
A payment gateway is an essential part of an Online Payment System. It is
necessary in order to process all of the following inter-bank on-line transactions:
1. Account-to-account transfer transactions or debit / credit card transactions on the web for
on-line merchant payment against purchase of goods and services;
2. Inter-bank ATM/POS transactions using debit / credit cards; and
3. Inter-bank Internet or SMS banking transactions for fund transfer (instant remittance) and
utility bill payment. Since there is no such system in Bangladesh, Dutch-Bangla Bank is actively
considering to implement a payment gateway to facilitate the above e-commerce transactions.
This will be the first payment gateway setup in the Country to drive e-commerce transactions.

27
IMPLEMENTATION OFMULTI-FACTOR AUTHENTICATION FOR
INTERNETBANKING
Internet banking has never taken off in Bangladesh due to an absence of identity verification.
DBBL's EMV compliant system allows accurate identity verification to allow full-fledged
internet banking services. DBBL will shortly implement this solution. DBBL's IT infrastructure
is working like the arteries of a human body. The effective, robust and reliable IT infrastructure
is ensuring the strong health for the Bank. DBBL is working round the clock without any
downtime, offering its customers the enjoyment of banking services. Banking has never been so
easy, comfortable, enjoyable, and yet secure. DBBL is relentlessly striving every moment to
facilitate its customers with the most advanced and secure technological environment. DBBL is
undertaking new projects in the field of automation to help meet customers’ needs.

28
Savings, investments, employment generation, productions, distribution and consumptions are
essential part of any economic system. The Bank being a financial intermediary plays a
significant role in this process by mobilizing savings & other resources, allocating such resources
to productive investments, local & international trades and consumptions. In the process the
Bank is directly or indirectly creating a lot of wealth by accelerating economic activities &
growth. By offering its unique products & services the Bank is engaged in maximizing savings,
investments, productions, trading, employment, consumptions etc. to maximize economic growth
and welfare of the society. Therefore banking company is holding a key position in economic
and social development of a country. DBBL is a corporate citizen. It cannot act on its own
without its stakeholders. The stakeholders as a whole help, direct and monitor the Bank to
perform its operations in an effective way to create and maximize value for the economy and
society. Shareholders provide the vital equity capital, depositors & lenders put their money in the
Bank, borrowers take the credits for production, trading or consumptions, employees put their
services to serve the customers, and government, Bangladesh Bank and Securities and Exchange
Commission provide legal & regulatory framework , infrastructure, economic & business
environment etc. to ensure smooth operations of banking activities with transparency and
accountability. With the support & resources from various stakeholders, DBBL conducts its
businesses to provide services to the customers and society at large and in the process creates and
maximizes value for all its stakeholders in a fair, transparent and ethical way. Maximization of
profit cannot be the only objective of the Bank, rather maximizing benefits & value for all
stakeholders in a fair and balanced way thereby maximizing welfare of the economy & society as
a whole is the objective of DBBL. However, profit is also important to give satisfactory returns
to all the stakeholders and to ensure sustainable operations, growth and long-term solvency of
the Bank which in turns enable the Bank to contribute in a greater way to the economy &
society.
As DBBL is dependent on its stakeholders to continue its operation and wealth creation
activities, therefore, wealth created by the Bank is also distributed to its various stakeholders.
Shareholders get dividends, depositors get interest, employees receive salaries and government
gets tax, VAT etc.
2.12 Economic contribution report

29
MEASURES TAKEN BY DBBL TO MAXIMIZE VALUE FOR ITS STAKEHOLDERS
AND TO INCREASE ITS CONTRIBUTION TO THE ECONOMY & SOCIETY IN A
SUSTAINABLE WAY
DBBL as a responsible citizen has taken effective measures to sustain its operations in a
sustainable way thereby to increase its contribution to the economy & society. DBBL has
undertaken due process, procedures and systems in compliance with best practices in corporate
governance, risk management, regulatory requirements, environmental issues, staff welfare,
customer services and business practices to strengthen its ability to serve the stakeholders and
society increasingly in a greater way.
SOME OF THE MEASURESTAKEN BY DBBL TO MAXIMIZE VALUE ARE GIVEN
BELOW
Corporate governance ensuring best practices DBBL complies with good corporate governance
practices in line with industry best practices and regulatory requirements ensuring transparency,
accountability and fairness at every step of its business operations to maximize performance with
governance.
MANAGING RISKS TO ENSURE QUALITY AND VALUE OF ASSETS AND
UNINTERRUPTED OPERATIONS
Risk management covering credit risks, operational risks and market risks is at the heart of all
business operations and transactions of DBBL. Risk management systems are designed and
implemented to ensure quality and value of assets and smooth banking operations and services in
a sustainable way to protect interest of shareholders, depositors and all the stakeholders. Risk
management system also
complies with Bangladesh Bank's core risk management guidelines.

30
BUSINESS ENVIRONMENT
All the surroundings in which we continue our business activities. These surroundings directly
and/or indirectly influence the business.
TYPES OF BUSINESS ENVIRONMENT
Firstly business environment can be classified into two types.
A) External Environment -that influences business directly or indirectly.
B) Internal Environment -that influences business directly.
A) External Environment
The external environment is composed of two layers.
1. General environment
The general environment includes nonspecific elements of the organization's surroundings that
might affect its activities in a broad and general sense.
2. Task environment
The task environment consists of specific dimensions of the organization's surroundings that are
very likely to influence the organization in a more direct and immediate sense.
B) Internal Environment
The internal environment consists of conditions and forces within the organization. It includes
owner, employees, board of directors and culture-each of which play an important role in the
internal environment of the organizations.

31
TYPES OF ENVIRONMENT
A) EXTERNALENVIRONMENT
A. The general environment
1. Economic dimension
The economic dimension of an organization's general environment the overall health of the
economic system in which the organization operates.
Factors are: inflation, interest rates, and employment all of which affect demand for different
products.

32
2. Technological dimension
The technological dimension of the general environment refers to the methods available for
converting resources into products or services.
Although Technology is applied within the organization, it may vary with the forms and
availability.
3. Socio-cultural dimension
The socio-cultural dimension of the general environment includes the customs, norms, values,
and demographic characteristics of the society in which the organization functions.
Socio-cultural processes are important because they determine the products, services,
and standards of conduct the society is likely to value.
4. Political-legal dimension
It refers to government regulation of business and the general relationship between business and,
government. The legal system partially defines what an organization can and can't do. Political
stability that has important role for planning.
5. International dimension:
International dimension of an organization refers to the extent to which an organization is
involved in or affected by business in other countries.
The customs, norms, values and government rules of host country are likely to affect
foreign business operation
B. TASK ENVIRONMENT
1. Competitors
2. Customers
3. Suppliers
4. Regulators
5. Regulatory agencies:

33
QUESTIONNAIRE
The surveyis done by a structured questionnairesandthe detail about questionnairesisgivenin
attachments section.
FINDINGS
Explain:we have conductedsurveywith10 employeesin10differentorganizations.We asked11
differentquestions(eachquestionisgivenwithdetailsresultinattachmentof the report) abouttraining
and developmentprogram.The findingsof thissurveyisgiven below
1st question
Explain:Our 1st questionforemployeesis “Economicpolicy which is changed by thelegal authority,
forcesthe organization to chanceits internalenvironment.” Eightof themare stronglyagree withthis
question.One isagreedandotherone disagreeswiththisquestion.
2nd
question
Explain:Our 2nd
questionforemployeesis“Yourorganizationtakessuchkindsof changes?”All ten
employeesare agreeingwiththisquestion.
0
1
2
3
4
5
6
7
8
Strongly
agree
Agree Undecided Disagree Strongly
disagree
QUESTION: Economic policy
which is changed by the legal
authority, forces the organization
to chance its internal
environment
YES (15 persons)
100%
NO (0 person)
0%
Your organizationtakes such kinds of changes

34
3rd question
Explain:Our 3rd questionforemployeesis “Interestrate,capitalstructure,Shortterm financing,long
term financing,dividend policy are affected by businessenvironment especially economicforces.” Eight
of themare stronglyagree withthisquestion.One isagreedandotherone disagreeswiththisquestion.
4th
question
Explain:Our 4th
questionforemployeesis“Yourorganizationtakessuchkindsof changes?”All ten
employeesare agreeingwiththisquestion.
0
1
2
3
4
5
6
7
8
Strongly
agree
disagree
QUESTION: Interest rate,
capital structure, Short term
financing, long term financing,
dividend policy are effected by
business environment specially
economic forces
YES (15 persons)
100%
NO (0 person)
0%
Is Such kind of changes are taken place in here?

35
5th
question
Explain:Our 1st questionforemployeesis “If theorganization adoptwith new environment,itshows
thatthe organization ismoreeffective and competencewith respect to others.” Eightof themare
stronglyagree withthisquestion.One isagreedandotherone disagreeswiththisquestion.
6th
question
Explain:Our 2nd
questionforemployeesis“Doyouthinkyourorganizationiscompetence andefficienty
adoptingnewandchangingenvironment?”All tenemployeesare agreeingwiththisquestion.
0
1
2
3
4
5
6
7
8
Strongly
agree
disagree
QUESTION: If the organization
adopt with new environment, it
shows that the organization is
more effective and
competence with respect to
others.
YES (15 persons)
100%
NO (0 person)
0%
Do you think your organizationis competence
and efficient y adopting new and changing
environment

36
7th
question
Explain:Our 1st questionforemployeesis “Asa bankits benefitand lossare directly influenced by
economicforces….?”Eightof themare stronglyagree withthisquestion.One isagreedandotherone
disagreeswiththisquestion.
8th
question
Explain:Our 2nd
questionforemployeesis“Doyouthinkit happenstoyourbank.?”All tenemployees
are agreeingwiththisquestion.
0
1
2
3
4
5
6
7
8
Strongly
agree
disagree
QUESTION:As a bank its
benefitandlossare directly
influencedbyeconomic
forces….
YES (15 persons)
100%
NO (0 person)
0%
Do you think it happens to your bank.

37
9th
question
Explain:Our 1st questionforemployeesis “Macroeconomicsforces(GDP,GNP,inflation,
unemployment, and foreign exchange) arethestrong factorsto takenew decision in a Bank..” Eightof
themare stronglyagree withthisquestion.One isagreedandotherone disagreeswiththisquestion.
10th
question
Explain:Our 2nd
questionforemployeesis“Forachievingthe success yourBankanalysisthisfactors?”
All tenemployeesare agreeingwiththisquestion.
0
1
2
3
4
5
6
7
8
Strongly
agree
disagree
QUESTION: Macroeconomics
forces (GDP, GNP, inflation,
unemployment, and foreign
exchange) are the strong
factors to take new decision in
a Bank.
YES (15 persons)
100%
NO (0 person)
0%
For achieving the success your Bank analysis this
factors.

38
11th
question
Explain:Our 1st questionforemployeesis “Theoverallfinancialcondition is dependson overall
country’seconomiccondition”Eightof themare stronglyagree withthisquestion.One isagreedand
otherone disagreeswiththisquestion.
0
1
2
3
4
5
6
7
8
Strongly
agree
disagree
QUESTION: The overall financial
condition is depends on overall
country’s economic condition

39
Banking sector is one of the leading sectors of our economy no doubt. Commercial bank is
ensuring money supply through short and middle term loan. In some cases, they also provide
conditional long-term loan. On the other hand, Dutch-Bangla Bank established for
industrialization. As a result, it issued long-term loan for industries.
After evaluation, we found that the role of Dutch-Bangla Bank in the industrial sector of
Bangladesh is tremendous. It is establishing new industries and helping them all sorts of
its kind. On the other hand, it is contributing for creating new employment opportunities
that is essential for economy;
Now Dutch-Bangla Bank is a profitable Bank. The financial statement says that it
increase its profit day by day. We believe if it runs right way it will be the leading private
Bank very soon.
Role of Dutch-Bangla Bank, in case of, entrepreneurship development, is very great. Our
cultural heritage is not favorable to business but Dutch Bangla Bank able to encourage
people to become businessman through their advisory services, seminar and symposium;
Dutch-Bangla Bank was formed to stimulate industrialization. Mainly it grants term loan,
working capital loan and bridge loan;
The inefficient allocations of resources have created a huge amount of bad debt. In some
cases, security against the loan is not sufficient to recover the loan. As a result, large
numbers of project become sick. Loan recovery is below the satisfactory level. But they
are trying to overcome such problem.
Major Findings

40
As a Development Financial Institution, Dutch-Bangla Bank plays a vital role for
industrialization. Dutch-Bangla Bank is continuing its bolstering endeavor for up-gradation of
our economy. Although there are a lot of favorable and strengthen positions of Dutch-Bangla
Bank in respect of its activities. One important problem of Bangladesh Shilpa Bank is that, it is a
decentralized organization and each department is responsible for particular activities but they
have lack of co-ordination to achieve the central objectives. I think rules and regulations are
sufficient but problem and controversial area is implementation. We observed a large number of
projects are sick and they are loan defaulter. I criticize the loan appraisal procedure because it is
the vital documents for loan issue. It is clear that some invisible hands may control this beyond
the process. And there is a question of failure ness: -
Loan appraisal procedure is time consuming and to some extent, project plan become
irrelevant after getting the loan. Since all the processes are completed so he is bound to
take this loan because some expenditure already been incurred (suck cost). As a result,
loan recovery may slow and some time difficult. My suggestion is that Bangladesh Shilpa
Bank should rearrange appraisal procedure so that the entrepreneur can take loan within
short period of time;
Dutch-Bangla Bank should avoid unnecessary political interfere that becoming outside
the ban. Political problem of our country is a major problem now. If it influence, the
banking activity must create new problem no doubt;
Some time real entrepreneur does not get bank loan. Dutch-Bangla Bank must have to
identify profitable project and actual entrepreneur for issuing loan. And employees who
are directly involved with loan recovery should also be motivated;
Recommendations

41
Dutch-Bangla Bank should introduce modern communication system so that every
department personnel or unit can get information in his or her desk. Now, one department
must have to go other departments for information. It is also time consuming. Preserving
documents also need to be computerized instead of traditional filing system;
Encouraging the borrower to repay the loan in time. Special arrangements should be
introduced in this respect. Legal steps should be dynamic so that default loan recovery is
accelerated. And security against the loan should be sufficient to recover the loan.

42
Dutch-Bangla Bank Ltd. is an Exclusive private bank in Bangladesh. It has the enormous
opportunity to business with its customer both in Bangladesh and worldwide. Its international
and local safety and security is popular to customer and it has the growth opportunities in
Bangladesh.
From the throughout analysis of the study, it has been clearly obvious that overall performance
of Dutch Bangla Bank is very good in our economic situation. It should care about the products
for its marketing activity lead time and distribution. Then DBBL can acquire a huge share in
both Dhaka and Chitagong Stoch Exchange.
Conclusion

43
01) Dutch-Bangla Bank – 2006 – Annul Report 2010
02) Manual of the project Appraisal - Dutch-Bangla Bank, August, 1984;
03) Chandra, P. - Project Planning - Analysis Selection Implementation & Review;
04) B. N. Ghosh - Scientific Methods and Social Research - Sterling Publishers Ltd.;
05) Fred N. Kerlinger - Foundation of Behavioral Research - Holt Rinehart Winston;
06) M/S Pack Stone Ltd - Appraisal Report - March 2002;
07) William G. Zikman - Business Research Methodology;
08) T. S. Wilkinson & P. I. Bhandarkar - Methodology and Techniques of Social Research;
09) Dutch-Bangla Bank - 2006 - Annual Report 2006
10) Dutch-Bangla Bank - 2007. - Annual Report 2007
11) Dutch-Bangla Bank - 2008 - Annual Report 2008
12) Dutch-Bangla Bank – 2009 - Annual Report 2009
13) Dutch-Bangla Bank – 2010 - Annual Report 2010
Bibliography

44
Questionnaires
Bangladesh University of Business & Technology (BUBT)
Founded by Dhaka Commerce College
Dhaka Commerce College Road, Mirpur- 2, Dhaka-1216
Phone: 8057581-3, Fax: 8057583
Dear Sir/ Madam,
This is an academic exercise intended to evaluate “Environment influence on Bank industry
A study on Economic force.”. The responses will be used for academic purposes and its confidentiality
will be strictly maintained. For further enquiry please contact with:
Md. Maniruzzaman
Lecturer, Department of Marketing
Faculty of Business, BUBT. Cell: 01718128866.
Please carefully read the questions and just put a tick ()in the respective box (◊) and kindly give your
response where necessary.
SECTION -1: GENERAL INFORMATION ABOUT RESPONDENT
1. Name:………………………………………… Contact No. ………………….……………
2. Gender: i. □ Male ii. □ Female
3. Age (in Years):………………………..
4. Marital Status: i. Single ii. Married iii. Divorced / Separated iv. Widow
5. Religion: i. Muslim ii. Hindu iii. Christian iv. Buddhist v. Others
6. Education level:
i. Below S.S.C. ii. S.S.C. iii. H. S. C iv. Diploma v. Graduation.
vi. Post Graduation. vii. Others: …………………………..
SECTION -2: GENERAL JOB INFORMATION
1. Name of your organization: …………………………………………………..…..
2. Designation in the Organization: …………………………………………………
3. Level of the Designation: i. Operational level ii. Mid level
4. Length of service in this organization (in Years):………………………….…….

45
Sec 03: Economic force on Your Bank
No. Statements Level of agreement
Strongly
agree
Agree Undecided Disagree
Strongly
disagree
1.
Economic policy which is changed by the legal
authority, forces the organization to chance its
internal environment
2. Your organization takes such kinds of changes
a. Yes b. No
3.
Interest rate, capital structure,Short term
financing, long term financing, dividend policy are
effected by business environment specially
economic forces
4.
Is Such kind of changes are taken place in here? a. Yes b. No
5.
If the organization adopt with new environment, it
shows that the organization is more effective and
competence with respect to others.
6.
Do you think your organization is competence and
efficient y adopting new and changing
environment
a. Yes b. No
[
7.
As a bank its benefit and loss are directly
influenced by economic forces
[
8.
Do you think it happens to your bank? a. Yes b. No
9.
Macroeconomics forces (GDP, GNP, inflation,
unemployment, and foreign exchange) are the
strong factors to take new decision in a Bank.
10.
For achieving the success yourBank analysis this
factors.
a. Yes b. No
11.
The overall financial condition is depends on
overall country’s economic condition

46
Tables
Table no 01
Economic policywhich is changed by the legal authority, forces the organization to chance its internal
environment
Strongly agree Agree Undecided Disagree Strongly disagree
8 1 0 1 0
Table no 02
Your organization takessuch kindsof changes
YES NO
10 0
Table no 03
Interestrate, capital structure, Short term financing,long term financing,dividendpolicyare effected
by businessenvironmentspeciallyeconomicforces
8 1 0 1 0
Table no 04
Is Such kind of changesare taken place in here?
YES NO
10 0
Table no 05
If the organizationadopt with new environment,itshows that the organization ismore effective and
competence withrespect to others.
8 1 0 1 0
Table no 06
Do you think your organization is competence and efficient y adopting new and changing environment?
YES NO
10 0

47
Table no 7
As a bank its benefitandloss are directlyinfluencedbyeconomic forces
8 1 0 1 0
Table no 8
Do you think it happens to your bank?
YES NO
10 0
Table no 9
Macroeconomicsforces (GDP,GNP,inflation,unemployment,andforeignexchange) are the strong
factors to take newdecisionin a Bank.
8 1 0 1 0
Table no 10
For achievingthe successyour Bank analysis thisfactors.
YES NO
10 0
Table no 11
The overall financial conditionis depends on overall country’s economiccondition
8 1 0 1 0

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