Presentation on Remittance trend of IBBL Presented by: Sakiba Ahsan Dept. of MIS University of Dhaka
Remittance Growth rate of Bangladesh• Bangladesh ranked 5th in 2011 among the highest remittance recipients of the world.
Why This Robust Growth?• Stable macro-economic indicators including GDP growth• Steady growth in manpower export specially in the middle east• Substantial devaluation of the local currency• Increased focus of Central Bank and the Government to channel funds through formal channels• Expansion of branch network of various commercial banks• Anti-Money Laundering rules and regulations came in force
Prospect: Challenges Ahead To Bangladesh• The government needs some 5.0 billion US dollar to stabilize economy at this moment. NRBs can set up a business conglomerate in the country where they will invest their hard-earned money. NRBs are keen to invest in the country. The government should come forward to provide facility for the investment.
Remittance Services of IBBL FDDExpress Remittance AS SOON AS presentedHighest time within 12 hours money isdeposited in receiver’s account and it is deposited inthrough BEFTN money is depositedwithin the 2nd working day in other receiver’s accountbank’s account Spot Cash Instant cashReceivers can get easycash taka
Steps taken by IBBL• Accolades for best use of remittance organized by RMMRU-IBBL• IBBL holds views exchange meeting with remittance beneficiaries• Win 200 Mobile Phones
Remittance trend and services Year Wise Remittance Growth of IBBL
Country Wise Remittance of IBBL Contribution of different countries in remittance (%) in 2011 Malaysia Singapore Canada Others Bahrain 9% 1% 0% 0% 3% Italy Korea Brunei Oman 1% 0% 0% KSAQatar 3% 45% 1% USA 8% UAE 15% Kuwait UK 12% 2%
Position of IBBL among Top Sixteen banks of the country Share of Remittance in 2011 among Top 16 Banks IBBL 26.07% Sonali 10.09% Agrani 9.74% Janata 7.86% National 6.05%Figure in million USD BRAC 4.67% Uttara 4.16% Southeast 4.16% Pubali 2.75% Prime 2.62% The City 2.11% AB Bank 1.97% Bank Asia 1.79% NCC 1.78% UCBL 1.55% Trust Bank 1.16% Dhaka Bank 1.07% Eastern Bank 1.00% Eastern Dhaka Trust Bank The City Southea UCBL NCC AB Bank Prime Pubali Uttara BRAC National Janata Agrani Sonali IBBL Bank Bank Bank Asia Bank st Volume 121.22 130.52 140.83 187.98 216.51 217.78 239.98 256.48 318.94 334.05 506.00 506.60 567.78 736.50 956.54 1,185.45 1,226.91 3,170.96 Share 1.00% 1.07% 1.16% 1.55% 1.78% 1.79% 1.97% 2.11% 2.62% 2.75% 4.16% 4.16% 4.67% 6.05% 7.86% 9.74% 10.09% 26.07%
Growth of Remittance Business (Country Vs. IBBL) Figure in million USD 2010 2011 Growth (%) Share of IBBL (%) 2010 2011 (1) (2) (3) (4) (5)Country 10990.16 12155.46 10.60 27.40 IBBL 3012.09 3170.96 5.27 26.09
Usage of remittance in Profitable projects• NRB (Non Resident Bangladeshi) Entrepreneurs Investment Scheme (NEIS)Objectives :• To extend investment facilities to Bangladeshis (NRBs) working abroad, intending to invest in Bangladesh.• To patronize NRBs to invest in the homeland and thereby contribute to the GDP towards growth and development of the country.• To create employment opportunities for NRBs on their return & their children.Mudaraba Foreign Currency Deposit Scheme (Savings)‘To encourage savings in Foreign Currency by offering a safe and profitable opportunity to the savers/investors by way of sharing a portion of the profit out of the investment of their funds as per principles of Shariah.Mudaraba NRB Savings Bond (MNSB) SchemeFC ACCOUNT
Variables that affect customer satisfaction• Adjacent to home/work place• Convenience of transaction and payment facilities:• Money Transfer Fees• Safety and security etc.
SWOT• Strength: • Weakness of IBBL Handling of 29 % of total Dishonesty of people remittance Lengthy process between Affordable exchange house to and Safe & reliable bank to bank Trustworthiness Anti-money laundering campaign • Threats:• Opportunities: Grab the new market: Less number of branches Diversified customer Increased competition
Recommendations for Remittance Services: Specially for IBBL• Door to Door Delivery - Cash / Cheque• Introduction of Mobile Banking for Remittance Payment:• SMS notification on Foreign Remittance.• Remote branches performance• Need to increase the number of counter• Increase the number of money exchange agents• Service charge• Monitoring the fraudulent activities related to foreign remittance.