Current & Future challenges of banking sector in bd(DBBL)

CURRENT AND FUTURE CHALLENGES OF
BANKING SECTOR & THE WAYS TO ADDRESS
THOSE CHALLENGES
[SPECIFIC INVESTIGATION & THE WAYS DBBL CREATES VALUE FOR
CUSTOMERS]

Assignment
On
CURRENT & FUTURE CHALLENGES OF
BANKING SECTOR AND WAYS TO ADDRESS
THOSE CHALLENGES
[SPECIFIC INVESTIGATION & THE WAYS DUTCH-BANGLA BANK LIMITED
CREATES VALUE FOR CUSTOMERS]
Course Name: Commercial & Central Banking
Course code: FIN-302
Prepared for:
Dr. Mohammed A Jahed
Associate Professor
Department of Management
University of Chittagong
Date of Submission: 10th
July, 2017

Serial number Name of student ID Remarks
1 Sabrina 14302019
2 Fatema Akter 14302038
3 Sumaya Tarin Sumi 14302119
4 Asma Akter 14302120
5 Rasheda Akter 14302130

Table of contents
Serial number Topic name Page number
1 Introduction 1-3
2 Banks in Bangladesh 4-5
3 Major challenges in banking sector 6-10
4 Challenges in e-banking 11-12
5 Strategies to Overcome Banking Sector Challenges 13
6 Other strategies to address challenges 14-15
7 Strategies to address e-banking challenges 16
8 Brief History of Dutch-Bangla Bank 17-18
9 Value creation 19-20
10 Regular products of DBBL 21-23
11 Corporate banking services 24
12 E-Banking for Business 25-33
13 Retail Banking Products 34-35
14 Recommendations 36
15 Conclusion 37
16 References 38

Executive Summary
Banks have always played an important position in the country’s economy. They play a decisive
role in the development of the industry and trade. They are acting not only as the custodian of the
wealth of the country but also as resources of the country, which are necessary for the economic
development of a nation. Banks play an important role in capital formation, which is essential for
the economic development of a country. They mobilize the small savings of the people scattered
over a wide area through their network of branches all over the country and make it available for
productive purposes. Banks create credit for the purpose of providing more funds for
development projects. Credit creation leads to increased production, employment, sales and
prices and thereby they cause faster economic development. After the nationalization of big
banks, banking industry has grown to a great extent. Bank’s branches are opened in almost all
the villages, which leads to the creation of new employment opportunities. Banks are also
improving people for occupying various posts in their office. Banks in Bangladesh faces a lot of
challenges like; low quality of assets, surplus liquidity, lack of good governance, inadequacy of
risk management system, political risks, non-performing loan, lack of infrastructural
development, and financial risks. Banks can address those challenges risk liability management,
risk management, credit rate risk mitigation, training human resources, attracting and retaining
the clients, using new and modern technology etc. All banks create value through its products
and services and Dutch-Bangla Bank Limited is not different. Dutch-Bangla Bank Ltd. provides
some unique deposit and loan products along with customer prioritized services. Dutch-Bangla
Bank Ltd. has introduced mobile banking named Rocket, internet banking, agent banking to
ensure efficient services to its customers. DBBL has also introduced ―Fast Track‖ service to
make it easy for the customers to transact very fast. E-banking or internet based banking is
becoming immensely popular for making transaction easy, time saving, and fast as well as
secured. But the fact is that infrastructural development still hinders the customers to transact
online. Recent theft in the reserve of Bangladesh Bank and theft of money from debit cards
discourages people to leave the manual system. Change in the environment and in infrastructure
will result in immense progress in banking sector. It is the today’s most common challenge for
all the banks providing banking services as the world financial system is becoming internet
based.

Introduction
Objectives of the study:
The objectives of the study are stated below:
1. To find out the current challenges prevailing in banking sector
2. To find out the future challenges those have to be faced.
3. To present the ways how banks will address those.
4. To present how DBBL creates value for its customers.
Sources of Information:
Information collected to furnish this report is both from primary and secondary sources. This
report is mainly based upon secondary sources.
The primary sources are:
Face to face conversation with the officers and employees.
Face to face conversation with the clients.
The secondary sources are:
Different circulars issued by the Head Office and Bangladesh Bank.
Various journals, bank records, manuals etc.
Different „Procedure Manual‟ published by DBBL Annual Reports (2013, 2014, 2015) of DBBL
Publications obtained from different libraries and from internet.
Limitations of the study:
This study report is based upon both Primary & secondary source of information from the documents and
databases of the Bank. It is tried best to produce a comprehensive and well-organized report.
1. Insufficient to collect and understand the actual scenario of the banking sector.
2. Banks policy did not permit to disclose various data and information related.
3. Unavailability of data.
4. Lack of proper knowledge as we are in the learning process.

Roles of Banks
Banking system plays very important role in the economic life of the nation. The health of the
economy is closely related to the soundness of its banking system. Although banks create
no new wealth but their borrowing, lending and related activities facilitate the process of
production, distribution, exchange and consumption of wealth. In this way they become very
effective partners in the process of economic development. Today modern banks are very
useful for the utilization of the resources of the country. The banks are mobilizing the savings
of the people for the investment purposes. If there would be no banks then a great portion of a
capital of the country would remain idle. A bank as a matter of fact is just like a heart in the
economic structure and the Capital provided by it is like blood in it. As long as blood is in
circulation the organs will remain sound and healthy. If the blood is not supplied to any organ
then that part would become useless, so if the finance is not provided to Agricultural sector or
industrial sector, it will be destroyed. Loan facility provided by banks works as an incentive to
the producer to increase the production. Many difficulties in the international payments have
been overcome and volume of transactions has been increased. Cheques, drafts bills of
exchange and letters of credit are very important instruments of the banks. The banks collect
these instruments drawn on banks in other cities or countries and proceeds according to the
accounts of the customer's concerns.
Definition of Bank
Bank is a financial institution and intermediary, which collect deposits through its different
deposit mechanism and provide loans and advances among the loan Clients/ investors with the
view to earn profit. Thus a bank is a financial intermediary and a dealer of loans and debts.
Examples of statutory definitions:
 ―Banking business‖ means the business of receiving money on current or deposit
account, paying and collecting cheques drawn by or paid in by customers, the making
of advances to customers, and includes such other business as the Authority may
prescribe for the purposes of this Act; (Banking Act (Singapore), Section 2,
Interpretation).
 ―Banking business‖ means the business of either or both of the following:
 Receiving from the general public money on current, deposit, savings or other similar
account repayable on demand or within less than [3 months] … or with a period of
call or notice of less than that period.

List of banks in Bangladesh
Bangladesh Bank is the central bank of Bangladesh and the chief regulatory authority in the
banking sector. The banking sector in Bangladesh consists of several types of institution:[1]
Central bank
 Bangladesh Bank
Pursuant to Bangladesh Bank Order, 1972 the Government of Bangladesh reorganized the Dhaka
Branch of the State Bank of Pakistan as the central bank of the country, and named it Bangladesh
Bank with retrospective effect from 16 December 1971.
Scheduled Banks
Scheduled Banks are licensed under the Bank Company Act, 1991 (Amended up to 2013).[1]
State Owned Commercial Banks
1. Agrani Bank Limited
2. Janata Bank Limited
3. Rupali Bank Limited
4. Sonali Bank Limited
5. Bangladesh Development Bank
6. BASIC Bank Limited
Specialized Banks
1. Bangladesh Krishi Bank
2. Bangladesh Samabaya Bank Ltd
3. Rajshahi Krishi Unnayan Bank
(RAKUB)
4. Ansar-VDP Unnayan Bank
5. Karmashangosthan Bank
6. Probashi Kollyan Bank
7. Palli Sanchay Bank
Islamic Shariah based Commercial Banks
1. Al-Arafah Islami Bank Limited
2. EXIM Bank Limited
3. First Security Islami Bank Limited
4. ICB Islamic Bank Limited
5. Islami Bank Bangladesh Limited
6. Shahjalal Islami Bank Limited
7. Social Islami Bank Limited
8. Union Bank Limited

Private Commercial Banks
1. AB Bank Limited
2. Bangladesh Commerce Bank Limited
3. Bank Asia Limited
4. BRAC Bank Limited
5. City Bank Limited
6. Dhaka Bank Limited
7. Dutch-Bangla Bank Limited
8. Eastern Bank Limited
9. IFIC Bank Limited
10. Jamuna Bank Limited
11. Meghna Bank Limited
12. Mercantile Bank Limited
13. Midland Bank
14. Modhumoti Bank Limited
15. Mutual Trust Bank Limited
16. National Bank Limited
17. National Credit & Commerce Bank
Limited
18. NRB Bank Limited
19. NRB Commercial Bank Limited
20. NRB Global Bank Limited
21. One Bank Limited
22. Premier Bank Limited
23. Prime Bank Limited
24. Pubali Bank Limited
25. South Bangla Agriculture & Commerce
Bank Limited
26. Southeast Bank Limited
27. Standard Bank Limited
28. The Farmers Bank Limited
29. Trust Bank Limited
30. United Commercial Bank Limited
31. Uttara Bank Limited
32. Shimanto Bank Ltd
Foreign Commercial Banks
1. Bank Al-Falah Limited
2. Citibank N.A
3. Commercial Bank of Ceylon PLC
4. Habib Bank Limited
5. National Bank of Pakistan
6. Standard Chartered Bank
7. State Bank of India
8. Woori Bank
9. HSBC Bank

Major Challenges Faced by Bangladeshi Banking Industry
Low quality of asset
The main assets of any bank which they use as their uses or investments are: Reserve, Cash item
in process of collection, Deposits at other banks, Securities and most importantly Loans. But in
our banking sector there are several problems related to the low quality of assets which banks are
using day by day. During the study, two major problems related to the quality issue about the
assets of our banking sectors are found.
The reserve requirement for our banking sector is 19.5% where Statutory Liquidity Ratio (SLR)
is 19.5% including the Cash Reserve Ratio (CRR) 6.5%. If any bank maintain more money than
their required reserve it will be known or stated as excess reserve. The adequacy of the required
reserve of the bank is very important for any country’s economy because if any bank holds any
excess reserve, the money that they are holding in their volts or other sectors it will be stated as
idle money which brings no return.
Surplus
Our banking industry is burdened with liquidity surplus and it still continuous if we see the
statistics data of central bank and it shows that at the end of month may, 2014 the excess
liquidity in banking sectors stood 102,223 core. The commercial banks have a tendency to
deposit the excess liquidity with the central bank where central bank charges interest of 5.25%
and on the other hand if banks borrow money from the central banks it charge 7.25% of interest
rate. In the present situation commercial banks are depositing their more or excess money to the
central bank rather than borrowing the money which increases the cost of the central bank or
Bangladesh Bank.
Lack of good governance, accountability and transparency
The banking industry of Bangladesh has continuously made considerable progress but despite
this situation the foreign countries are consider our banking system or banking industry activities
as questionable. This occurs because recent news about bank directors and chairmen’s
involvement in political parties. Also there has been a possibility to unhand bank’s important
deals with using the bank’s goodwill which will question the factor that is our banking industry
and its’ operations are independent & reliable.
Because of the lack of good governance whatever the banks are publishing in their annual reports
and regulatory paperwork’s and the data they are putting in those papers are accurate or not.

Government is failing to achieve growth of the credit target which is contributing to the lower
investment. The Incremental Capital Output Ratio (ICOR) which measure the investments of any
country has shown us that the GDP of Bangladesh may be increased which is deteriorating over
the past few years. In recent years the growth of credit is also declining because of the
consecutive monetary policy of Bangladesh Bank, political unrest, uncertainty in Bangladesh and
most of all lack of infrastructure facilities and lawlessness.
Inadequacy of effective risk management system
The risk management system is a combination of some terms which includes: asset quality,
capital adequacy, non-performing loan, expenditure income ratio, return on Asset (ROA), &
return on Equity (ROE).
The capital adequacy is a cushion for a bank that prevents bank failure. Capital adequacy is
measured by the capital to Risk Weighted Asset. The regulation from the central bank is a
commercial bank has to maintain 10% of risk weighted asset (RWA) or tk. 200 whichever is
higher as the banks minimum required capital.
If the banks cannot maintain or hold their required amount of capital then a situation came up
this is referred to as ―Shortfall of Capital‖. In this situation the government would have to restore
the capital position under the extended credit facility loans driven by the International Monetary
Fund (IMF). At the end of year 2013 the bank’s capital shortfall amount was tk. 8863 core. To
meet the requirement of the IMF and finance minister has decided to revise the recapitalization
of banks proposal and for that banking sector will distribute 4100 core in the first phase against
their shortfall of capital.
The management of the banking sector either sound or not for that the only indicator is
Expenditure Income Ratio (EIR). If the EI ratio is high that is not good or sound for the bank. In
Bangladesh the reasons behind high EI ratio are: loan loss provision, high administrative,
overhead expenses, interest suspense for classified loan and the lack of presence of prudential
surveillance of the banking sector.
Macro Risks
However, unavoidable risks, like political risk, risk of macroeconomic downturn, etc. cannot be
prevented by the banks. To some extent, these factors affect the performance of these banks.
Another problem the banks have to face is that whenever there is a change in the government, or
there is any strong recommendation by any powerful donor country, the policy initiatives of the
government change drastically. This forces the banks to focus more on short term planning and
short term adjustments than long term planning, since there is a significant amount of uncertainty
among the banks about the future. Since in this case, banks with more capabilities of adjusting to

changed circumstances perform better, a considerable amount of manpower and resources of
each bank is directed towards the monitoring and prediction of movements in the economy and
the changes in the government.
Besides these major problems faced by our banking industry, some other issues related to our
banking sector:
1. Industrial Loan
Since April-June, 2011 the growth rate in the industrial term loans has been fluctuating with an
irregular movement and growth rate was also negative. For adequate capital formation loan is a
very important factor like the developing country of ours.
2. Agricultural Credit Disbursement
The growth rate of agricultural credit disbursement and the recovery of credit have been
declining after the month of September, 2013. In September, 2013 the disbursement of
agricultural credit was 1149.04 crore but in October, 2013 the amount decreased at 1086.56 core.
The growth rate of disbursement of agricultural credit was decreased by 5.4 percent in October,
2013.
3. Disbursement of SME loan
Except the specialized banking sector loans given by all banks and financial institutions has been
increased to Tk. 473242.7 core at the end of September, 2013 from Tk. 466162.3 core at the end
of June, 2013 but the SME loan has decreased by Tk. 9451.91 core at the end of September,
2013 from Tk. 24398.34 at the end of September. 2012. It shows that the growth rate in SME
loan sector is negative.
4. Borrowing from the Govt. bank
Banks are borrowing more money from the government since July-September, 2013. Because of
the increase of borrowings in every year the expenditure are also going up because of the higher
interest payment they have to pay to the government for their borrowings.
5. Credit Growth
Credit growth is the increase in the loans for the private sector, individuals, establishments and
public organizations. When credit is expanding or increasing, consumers can borrow and spend
more and businesses can borrow and invest more. The expansion of credit tends to cause the
price of assets such as property and stocks to increase, thereby boosting the net worth of the
public. Increasing consumption and investment produces jobs and expands income and profits.
However, every credit-induced economic boom comes to an end when one or more important
sector of the economy becomes incapable of repaying the interest on its debt.

6. Non-Performing loans
A non-performing loan is a loan that is in default or close to being in default. Many loans
become non-performing after being in default for 90 days, but this can depend on the contract
terms. Once a loan is nonperforming, the odds that it will be repaid in full are considered to be
substantially lower. If the debtor begins to pay on the NPL it becomes a Reforming Loan, even if
the debtor has not caught up all the missed payments. Non-performing loans (NPL) has increased
in Bangladesh as well.
Non-performing loan (Increase)
Revenue (Decrease)
Loan loss provision (Increase)
Cost of loan (Increase)
Investment demand (Decrease)
Economic growth (Decrease)
Bangladesh Bank relaxed the loan rescheduling policy for the next six months to facilitate
financing in the business. Banks can improve their asset quality management and show better
financial performance. The prime focus of the banking sector would be the recovery of the loans
that has been made last part of the previous year through the central bank’s directory. This might
put the banks in distress if the correct amount is not repaid in at the particular times. These
Banks need to keep additional capital against
* Residual risk,
* Credit concentration risk,
* Liquidity risk,
* Strategic risk,

* Reputation risk,
* Settlement risk
* Evaluation of core risk
* Operational Risk
The increased capital requirement might put pressure on the capital requirement of a good
number of banks having marginal capital adequacy (The Financial Express, 2015). Bangladesh
Banks increased the number of Banks. They have thought it will help increase the quality of
banking sectors in Bangladesh. For new banks the ratio of opening inside the rural area. No
banks can focus on rural areas here after focusing on the urban areas. Granting so many licenses
for lots of new banks have created alarming situation. The banking sector is already saturated
with 47 commercial Banks. It was not logical to introduce more. There will be unhealthy
competition (The Financial Express, 2015).
7. Surplus Liquidity
Surplus liquidity occurs where cash flows into the banking system persistently exceed
withdrawals of liquidity from the market by the central bank. Surplus Liquidity: Implications for
Central Banks.
Sources of Surplus
* Foreign exchange reserves build
* Monetary Financing- asset is lending to government
* Bank rescue- asset is LOLR credit and is ultimately a loss (Gray, 2006)
Bangladesh’s commercial banks are washed with idle money due to poor investment and lower
credit demand. Due to political instability al the businesses remained stopped mainly due to
elections.
The excess liquidity increased by Tk240bn or 40% during January-September period of the
current year and stood at Tk840bn from Tk600bn in January, according to the Bangladesh Bank
data. The amount of surplus liquidity increased rapidly while credit growth dropped
continuously. The credit growth of the banks was 13.39% in January with surplus liquidity of
Tk600bn, followed by 10.29% growth in March with Tk660bn in excess liquidity. The growth
was 8.97% in June when the liquidity was Tk790bn and 7.40% in September as the liquidity rose
to Tk840bn.

Challenges and Constraints of E-Banking
1. Infrastructural Barriers
Infrastructural barriers were one of the most important challenges for e-banking in Bangladesh.
Here, there is not enough infrastructural support for providing efficient e-banking services. In
our country, telecommunication services were not strong, communication bandwidth is weak,
software is not available in the country and hardware for establishing ATM booth is costly.
2. Knowledge Barriers
E-business is still not very much progressed in Bangladesh. Mass awareness is not feasible. The
country faces problem of developing trained human resources. There were lack of technological
knowledge among the managers, employees, and customers of bank.
3. Legal and Security Barriers
In Bangladeshi circumstance lack and limitation of regulation of law is one of the acute obstacles
to e-banking. On the other hand, in an underdeveloped country like ours, frauds were gaining
significant potential which indicates a negative output in our local e-banking sector.
Besides these barriers, our courts doesn’t consider electronic documents as evidence, so people
with a high risk of transaction were not much interested to get e-banking facilities. Technical
issues were also highly connected to e-banking, but in Bangladesh technical securities were very
weak an in a high risk of hacking in each moment. So, customer’s trust in e-banking is still
beyond imagination in Bangladesh
4. Socio-cultural and Economic Barriers
As mentioned earlier, most of the people are not educated in Bangladesh. So, people are not
willing to break the traditional way of conventional banking and always hold a negative
perception regarding e-banking. Another important issue is banks employees also hold a negative
outlook to e-banking thinking of uncertainty of their jobs. On the other hand many traditional
customers prefer paper money and receipts over e-documents for their ignorance and weakness
in English language. In Bangladesh, economic barriers were one of the most challenges for e-
banking. For providing e-banking services to the customer, it needs for heavy investment
regarding new infrastructures.
5. Lack of Awareness and Human Capital
E-business is still not very much progressed in Bangladesh. Mass awareness is not feasible. The
country faces problem of developing human-capital. Without preparing human capital at the

level of international standard, we cannot be able to compete in global market and successful e-
business cannot be possible.
6. Unsatisfying Services and Customer Relationship
Nationalized commercial banks and specialized banks were lagging behind of online banking
services. Moreover, customers were not satisfied with the quality of the services. They were not
also very happy with the behavior of the bank personnel. However, it reveals that e-business
especially with the help of online banking can manage economy of Bangladesh in a far better
way as customer relationship management increases.
7. Unavailability of Locally Produced Software
Local Banking software may be developed properly and must have greater accessibility within
the country and outside the country. Moreover, to produce hardware especially computer and its
accessories, local entrepreneurs were not taking any sort of strategic planning.
8. Erstwhile Technology
Bangladesh Bank may adopt latest technology but due to lack of vision they were adopting old
technology i.e. introduction of MICR for Bangladesh Bank automation procedure. MICR system
may be substituted by cheque truncation system.
9. Limited Number of Online Customer Due to High Cost
The number of customers taking banking services does not capable to bear the cost of additional
equipment like computer, computer accessories, Internet etc. from their own organization or at
home. Biometrics may be more strengthened. Using Internet facility still very costly and people
has little knowledge in operating computers. A few numbers of cyber café is available but for
banking purpose customers do not feel safe to use these facilities. As a result total numbers of
customers who were habituated in online banking systems were limited.
10. Financial Risks
Although online banking has bright prospects, it involves some financial risks as well. The major
risk of on line banking includes operational risks (e.g. security risks, system design,
implementation and maintenance risks); customer misuse of products and services risks; legal
risks (e.g. without proper legal support, money laundering may be influenced); strategic risks;
reputation risks (e.g. in case the bank fails to provide secure and trouble free e-banking services,
this will cause reputation risk); credit risks; market risks; and liquidity risks. Therefore,

identification of relevant risks, and formulation and implementation of proper risk management
policies and strategy formulations and implementations are important for the scheduled banks
while performing online banking system.
Possible Strategies to Overcome Banking Sector Challenges
The indicators of business environment in Bangladesh represent some serious problems in
operating any kind of business. In this context, the final question that needs to be answered is
how the banks are coping with the challenges outlined in the previous section and maintaining
their reasonably good performance.
Firstly, banks give utmost importance to asset liability management as a determinant of
profitability. For example, all banks have Assets and Liabilities Committees. These committees
monitor market risks and liquidity risks, and at the same time they interpret the market views,
competition and the potential target markets. These committees are mainly spearheaded by the
top officials of the banks.
Secondly, all the banks have Risk Management Units, which mainly manage credit risk, liquidity
risk, foreign exchange risk, internal control and compliance risk, and take necessary steps for
prevention of money laundering. The main strategies of these units include the conducting of
stress testing for all functional levels of the Bank to eliminate the existence of any mistake. The
unit also analyzes resilience capabilities of the banks in combating different financial distress.
Another main function of the unit is trying to stop the bank from taking excessive risks.
Thirdly, banks generally follow the guidelines provided by Bangladesh Bank while managing
credit risk, which refers to the risk of losses of banks if borrowers fail to repay the borrowed
money in time. Banks have credit operations departments which monitor the credit facilities.
Fourthly, for tackling liquidity risk, which refers to the risk that the bank will encounter
difficulty in meeting obligations from its financial liabilities at a point of time, each bank
monitors the daily liquidity positions. Necessary steps are always taken to keep the liquidity
position up to the mark.
Fifthly, for tackling foreign exchange risk, which represents the fluctuations in exchange rate
movement that may affect the bank’s position, techniques like hedging against risks are used.
Banks also take different measures to prevent money laundering.
Sixthly, banks closely observe the movements in the economy. In every annual report of the
commercial banks, there is a report on the recent macroeconomic trends, which helps the bank
management to update their policies to adjust with the changing circumstances.

Finally, banks undertake human resource training for better management. Some of the banks
maintain separate departments which not only provide training for their own employees, but also
extend their training towards trainees of other banks. This helps the banks to increase their
efficiency.
Bangladesh Bank also has a key role to play here. Commercial Banks are obligated to regularly
report the measures taken by them for compliance with the rules and regulations of Bangladesh
Bank. If any of them fail to follow the rules, Bangladesh Bank cancels their license. Bangladesh
Bank also monitors the activities of the private commercial banks and regulates their activities
where necessary.
Other strategies to address future challenges
1. Attract and retain clients Banks and financial services
Firms have to stand out in the crowd by offering customers something extra. "The bottom line is there is
nothing that can differentiate one bank from another, other than making a connection with customers,"
says Joe Sullivan, Chief Executive Officer of Market Insights. Sullivan's company helps financial
institutions with business strategy, planning and marketing. "Make an emotional connection with the
consumer and let them know you understand their financial needs. Then come at them with solution-
based thinking, not product pushing. Sullivan says, ―The financial services providers that help customers
take ownership of their finances and teach them to become better money managers will have larger client
bases.
2. Knowing customer in a rapidly changing world
Financial services providers must be aware that their customers are changing, too. According to Sullivan,
Consumers are savvier and more aware of their finances than they were five years ago. The best
providers engage customers and learn how their needs are evolving. If a bank or a business has not
viewed at its market or its customers to learn "what is going on with them in the last year, you don't
know your customers." Sullivan said.
3. Promote confidence in the economy
The economic crisis that began in 2008 is still very fresh in customers' minds. Large financial firms
collapsed and the government bailed out troubled banks. The stock market lost value and in much of the
country the housing market eroded.

4. Using technology that customers expect
Sullivan said, "Technology has changed the expectations consumers and small businesses have of their
bank". Clients use information on the Internet to compare financial service institutions. Companies must
react to changes in technology to keep reaching customers in the most effective ways.
5. Watching goodwill or reputation
The financial services world is like high school in some ways: goodwill can be difficult to control or
change. At the moment, consumers are not forgiving many of the companies that were front and center
during the economic crisis.
6. In the wake of these challenges, banks must gain some sound strategies to weather the strong
headwinds during the economic transition. Such as:
First, banks may strengthen their risk pricing capability and put more emphasis on small-to-medium
enterprises and retail business .To ensure business growth and maintain high profitability, banks must
expand downward to develop SME and retail customer resources.
Second, innovating product lines plus integrated businesses. Economic transition means basic deposit
and loan business will see continuous downward pressure on profitability and narrowing room for
growth. Banks must need to adapt to the trends and the changing financial demands of customers by
rolling out new products and services.
Third, banks must have optimized institutional structures with an enhanced corporate culture. Changes
in customer mix and business innovation are founded upon organizational structure and corporate
culture. In future, customers' needs will not be limited only to credit services, but also cover various
aspects including investment services, settlement, and wealth management. This integrated mode of
financial operations requires close cooperation and coordination among different divisions. Commercial
banks may come up with an appropriate organizational structure for future development.
Banks may push for higher efficiency in capital utilization with more contribution from retail and
intermediary businesses. Following the implementation of the new capital requirements, the previous
continuous growth of the commercial banks is not sustainable .Under current market conditions; banks
can only accumulate capital internally.

To address the challenges of e-banking services, there are some ways such as:
1. • E-banking systems may be simple to use, fast and user friendly.
2. E-banking services may be standardized so that wherever the solution is used the
customer is familiar with the procedure followed Government may compel the
banking sectors to automate their operation and going online by a specific period.
3. Provide adequate training and technological support to develop the manpower.
4. Proper infrastructure development.
5. Appropriate legal framework.
6. The whole country may be connected under fiber optic backbone for electronic
banking infrastructure as soon as possible.
7. Electronic banking sector depends on telecommunication and Internet services. So
government may implement the National ICT policy 2002 as quickly as possible.
8. Government may implement the cyber laws to ensure proper security about
customer’s information (i.e. Credit card number).
9. Government may establish proper educational institution to create efficient IT
professionals to support e-banking in Bangladesh.
10. Developing of integrated e-banking software.
11. Government, in collaboration with the banks, may educate and inform its citizens
and customers on the workability and effectiveness of E-banking. This will
increase the confidence level of customers.
12. The clearing house operation in Bangladesh may be fully automated system.
13. Banks may have adequate research and technological background in this regard.
14. Bank can charge normal profit to enlarge the market size on the electronic
banking products.

Dutch-Bangla Bank Limited
Type Public
Traded as DSE: DUTCHBANGL
Industry
 Banking
 Financial services
Founded
1995; 22 years ago in Dhaka,
Bangladesh
Headquarters Dhaka, Bangladesh
Key people M Sahabuddin Ahmed (Chairman)
Number of
employees
1600
Website dutchbanglabank.com
Brief History
Dutch-Bangla Bank Limited (DBBL) is a bank in Bangladesh. DBBL is a scheduled joint
venture commercial bank between local Bangladeshi parties by M Sahabuddin Ahmed (Founder
& Chairman) and a Dutch company FMO. DBBL was established under the Bank Companies
Act 1991 and incorporated as a public limited company under the Companies Act 1994 in
Bangladesh with the primary objective to carry on all kinds of banking business in Bangladesh.
DBBL commenced formal operation from June 3, 1996. The Bank is listed with the Dhaka Stock
Exchange Limited and Chittagong Stock Exchange Limited.
The bank is often colloquially referred to as "DBBL", "Dutch Bangla" and "Dutch Bangla Bank".
(DBBL.)

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. Dutch Bangla Bank other focus is Corporate Social Responsibility (CSR). Even
though CSR is now a cliché, Dutch Bangla Bank is the pioneer in this sector and termed the
contribution simply as 'social responsibility'. Due to its investment in this sector, Dutch Bangla
Bank 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.
Dutch Bangla Bank 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. Dutch Bangla Bank also operates the nation's largest
ATM fleet and in the process drastically cut consumer costs and fees by 80%. Moreover, Dutch
Bangla Bank choosing the low profitability route for this sector has surprised many critics. Dutch
Bangla Bank 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 Dutch Bangla Bank
banking infrastructure instead of pursuing their own.
Even with a history of hefty technological investments and even larger donations, consumer and
investor confidence has never waned. Dutch-Bangla Bank stock set the record for the highest
share price in the Dhaka Stock Exchange in 2008.

Value created by Dutch-Bangla Bank Ltd.
Value is the extent to which a good or service is perceived by its customer to meet his or her
needs or wants, measured by customer's willingness to pay for it. It commonly depends more on
the customer's perception of the worth of the product than on its intrinsic value.
Value in marketing, also known as customer-perceived value, is the difference between a
prospective customer's evaluation of the benefits and costs of one product when compared with
others. Value may also be expressed as a straightforward relationship between perceived benefits
and perceived costs: Value = Benefits / Cost.
The basic underlying concept of value in marketing is human needs. With a consumers wants
and resources (financial ability), they demand products and services with benefits that add up to
the most value and satisfaction.
The four types of value include: functional value, monetary value, social value, and
psychological value. The sources of value are not equally important to all consumers. How
important a value is, depends on the consumer and the purchase. Values should always be
defined through the "eyes" of the consumer.
Functional Value: This type of value is what an offer does; it's the solution an offer provides to
the customer.
Monetary Value: This is where the function of the price paid is relative to offerings perceived
worth. This value invites a trade-off between other values and monetary costs.
Social Value: The extent to which owning a product or engaging in a service allows the
consumer to connect with others.
Psychological Value: The extent to which a product allows consumers to express themselves or
feel better.
For a firm to deliver value to its customers, they must consider what is known as the "total
market offering." This includes the reputation of the organization, staff representation, product
benefits, and technological characteristics as compared to competitors' market offerings and
prices. Value can thus be defined as the relationship of a firm's market offerings to those of its
competitors.

For an organization to deliver value, it has to improve its value: cost ratio. When an organization
delivers high value at high price, the perceived value may be low. When it delivers high value at
low price, the perceived value may be high. The key to deliver high perceived value is attaching
value to each of the individuals or organizations—making them believe that what you are
offering is beyond expectation—helping them to solve a problem, offering a solution, giving
results, and making them happy.
Value changes based on time, place and people in relation to changing environmental factors. It
is a creative energy exchange between people and organizations in marketplace.
Very often managers conduct customer value analysis to reveal the company's strengths and
weaknesses compared to other competitors. The steps of which are as followed,
 To identify the major attributes and benefits that customers value for choosing a product
and vendor.
 Assessment of the quantitative importance of the different attributes and benefits.
 Assessment of the company's and competitors' performance on each attribute and
benefits.
 Examining how customer in the particular segment rated company against major
competitor on each attribute.
 Monitor customer perceived value over time.
Dutch-Bangla Bank Ltd. creates value for its customers through its products and services.
Every bank provides services to its clients and also offers many types of products. A bank
primarily creates value by selling its products like deposit products, loan products, and retail
products. Dutch-Bangla Bank Ltd. is not different in nature. It also provides same services and
products along with its unique services those acts as the point of difference to differentiate this
particular bank from the others.

Products offered by DBBL to create value for its customer are analysed below:
Regular-deposit Products
 Savings Deposit Account
 Current Deposit Account
 Short Term Deposit Account
 Resident Foreign Currency Deposit
 Foreign Currency Deposit
 Convertible Taka Account
 Non-Convertible Taka Account
 Exporter's FC Deposit(FBPAR)
 Current Deposit Account-Bank
 Short Term Deposit Account-Bank
Term-deposit Products
 Monthly term deposit
 Term deposit 3 months
 Term deposit 24 months 1 year PAYOUT
 Term deposit 36 months 6 month 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
 6 month TD NFCD
 6 month TD NFCD

Loans-advances Overview
Dutch Bangla Bank offers a wide range of loans and advances to suit your needs. Amongst them
are the following.
 Life Line (a complete series of personnel credit facility)
 Loan against. Trust Receipt
 Transport Loan
 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
Letter of Credit-trade Business
Areas of Operation
Import Finance
Dutch Bangla Bank extends finance to the importers in the form of:
1. Opening of Import L/C
2. Credit against Trust Receipt for retirement of import bills.
3. Short term & medium term loans for installation of imported machineries & production
thereof.
4. Payment against document

Export Finance
1. Pre-Shipment Finance
Pre-Shipment finance in the form of:
I) Opening of Back-to-Back L/C
I) Export Cash Credit
2. Post-Shipment Finance
Post-Shipment finance in the form of:
I) Foreign/Local Documentary Bills Purchase
II) Export Credit Guarantee
III) Finance against cash incentive
Foreign Remittance
Dutch Bangla Bank provides premium quality service for repatriation and collection of
remittance with the help of its first class correspondents and trained personnel. By introducing
on-line banking service and becoming a SWIFT Alliance Access Member, which enable its
branches to send and receive payment instruction directly that helps provide premium services.
Remittance services provided by Dutch Bangla Bank are:
Inward Remittance: Draft, TT
Outward Remittance: FDD, TT, TC and Cash (FC)
Treasury
Dutch Bangla Bank is well equipped for treasury operation through subscribing Reuters's
terminal and operating in SWIFT network. It is also well equipped with competent human
resources for efficient dealing.
Our treasury quote competitive exchange rate for major currencies:
1. Spot Sale/Purchase
2. Forward Sale/Purchase
3. Money market Interbank & Corporate
4. SWAPS
5. Forex - Commercial & Non-Commercial

Account Services
Dutch Bangla Bank provides all the accounts services as prescribed by the guidelines of Central
Bank (Bangladesh Bank). We offer competitive interest rate and provide premium quality
services for the accounts. Account services are:
1. Foreign Currency Account
2. Non-Resident Foreign Currency Deposit Account (NFCD)
3. Resident Foreign Currency Deposit Account (RFCD)
4. Convertible and Non-Convertible Taka Account
5. Convertible and Non-Convertible Taka Account
6. Non-Resident Blocked Taka Account
Corporate-Banking Services
Dutch-Bangla Bank offers a wide range of corporate banking services. They include:
Project finance
The Bank encourages accepting purpose/project specific development funds on competitive
terms towards economic upliftment and well-being of the people/country by way of setting up a
new stand alone, capital intensive project or for BMRE of an existing project.
Working Capital finance
The bank considers lending short –term working capital finance to entities engaged in
manufacturing, assembling, processing, re-packaging of goods and commodities for domestic
consumption or export market. However, unsecured loans (not collateralized) for working capital
without justification or purpose is not considered.
Syndications & Structured finance
The Bank, on case to case basis, arranges loan syndications or approves disclosed participations
in syndications provided such transactions meet the parameters separately established. The bank
will at all times maintain at the minimum a pari-passu status to other banks in all lending
relationships. Second mortgages or lower are not be accepted as primary collateral.
Syndications & Structured finance
The Bank, on case to case basis, arranges loan syndications or approves disclosed participations
in syndications provided such transactions meet the parameters separately established. The bank

will at all times maintain at the minimum a pari-passu status to other banks in all lending
relationships. Second mortgages or lower are not be accepted as primary collateral.
Trade finance
Dutch Bangla Bank prefers Trade Financing in the form of short-term (up to 12 months), self-
liquidating or cash flow supported well collateralized trade transactions*Work Order finance.
The Bank will consider financing construction contractors (work order finance). However all
such transactions must meet the guidelines. Bank asks for assignment of bills receivables with
concurrent authority to collect bills issued favoring Dutch Bangla Bank.
Equity finance
Dutch Bangla Bank joins in hands in building partnership with entrepreneurs of high credit
standing and excellent track record within the purview of regulatory restrictions. However,
lending for the purpose of supplying equity in a business is not allowed nor venture capital
financing.
Social and Environmental Infrastructure finance
The Bank receives credit lines, from time to time, from home & abroad, to finance eco-efficient
and sustainable projects aimed at improving environment and generating social benefits.
Custom electronic-banking projects
If the client realizes that they need a specific banking solution and/or services to meet their
needs, Dutch Bangla Bank will create it and provide it. Projects are done on a per client basis
designed specifically to meet the needs of clients. Currently large companies and Multi-nationals
use these services extensively but it is not limited to them only.
Electronic-Banking for Business
One Dreams it, Dutch-Bangla Bank will create it.
Dutch-Bangla Bank offers a complete electronic banking facility for your company around the
clock. Most multi-nationals use this service because it is advanced, secure and affordable. Dutch
Bangla Bank creates a custom banking service to suit any business of any size. The services have
a wide range that includes cash flow services, distribution banking and salary accounts. If a
company knows what type of custom and tailored banking service they need, Dutch Bangla Bank
can provide it instantly and at minimal cost (usually free of charge).

There are hundreds of companies using this type of services from Dutch Bangla Bank and they
also include the largest companies and multi-nationals operating in Bangladesh. Dutch Bangla
Bank has a world-class banking system used by many of the world's top banks and the largest
electronic banking infrastructure to provide your company with any type of custom banking
services you desire.
For example for your starting point, Dutch Bangla Bank has created Employee Banking program
which allows:
Seamless and error free distribution of salaries
 Providing employees with timely salary payments
 Lower manpower needed
 Reduces cash theft and misappropriation
 Transactions are properly logged for your easy reference
 Highly secure way of distributing money
 No cash at hand in the office, all cash finally distributed through the largest ATM
network in Bangladesh
Introduction to Electronic Banking
First Fully Automated Electronic Banking
Dutch-Bangla Bank is the first bank in Bangladesh to be fully automated and introduce
Electronic Banking. The automation was completed in 2003, but further additions and features
are continuously being added and upgraded. Dutch-Bangla Bank Ltd has adopted the same exact
automation solution used my many international banking giants. Although this was significantly
more expensive than other solutions, it is a small price to pay for a client's peace of mind.
Unrivaled Access to Banking
A Dutch-Bangla Bank Ltd client now has unrivaled access to banking from any Dutch-Bangla
Bank Ltd branch, ATM and POS. All of these services are free-of-charge and are surprisingly
affordable for everyone. Even though Dutch-Bangla Bank Ltd has invested more in Electronic
Banking more than any other bank, the division was never intended to be profitable. It was
undertaken with the same mindset Dutch-Bangla Bank Ltd undertakes its Corporate Social
Responsibility tasks. Never has any bank given so much for free.

Largest ATM Network in Bangladesh
Dutch-Bangla Bank Ltd also has the largest ATM network in Bangladesh. This gives Dutch-
Bangla Bank Ltd clients full access to 'anytime anywhere' banking nationwide. All international
and many local banks use the Dutch-Bangla Bank Ltd ATM network for their own clients.
Dutch-Bangla Bank Ltd has installed over 4,100 ATMs nationwide. As with most things, ATM
access to all Dutch-Bangla Bank Ltd ATMs is unlimited and free for all Dutch-Bangla Bank Ltd
clients. If a client of a member bank (not Dutch-Bangla Bank Ltd) uses a Dutch-Bangla Bank
Ltd ATM, the member bank may add a transaction charge.
Largest IT Budget
Dutch-Bangla Bank Ltd has the largest IT budget in Bangladesh. Dutch-Bangla Bank Ltd
maintains the state-of-the-art Electronic-Banking Division. The Electronic-Banking Division
oversees and maintains Dutch-Bangla Bank Ltd.’s investment as well as implementing upcoming
projects.
Dutch-Bangla Bank Ltd is the only local bank to have a off-site Data Recovery Site (DRS). DRS
ensures that customer records are safe, backed-up, and up to date in the event of a major
catastrophe at the Electronic-Banking Division headquarters.
Since 2004, Dutch-Bangla Bank Ltd has introduced SMS and Alert banking. With a mobile
phone, customers can perform many banking operations with their phone.
Rocket
2011 was a historic year for the banking sector of Bangladesh as Dutch-Bangla Bank Ltd
inaugurated Bangladeshi's first mobile banking. It’s a Banking process without bank branch
which provides financial services to unbanked communities efficiently and at affordable cost.
Rocket provides banking and financial services, such as cash-in, cash out, merchant payment,
utility payment, salary disbursement, foreign remittance, government allowance disbursement,
ATM money withdrawal through mobile technology devices, i.e. Mobile Phone.

Benefits of Rocket
VISA and MasterCard
Dutch-Bangla Bank Ltd is a primary license holder for both VISA and MasterCard. It is
authorized to issue and accept payments from both organizations. Dutch-Bangla Bank Ltd also
works closely with both organizations to bring you the latest in card technology. Dutch-Bangla
Bank Ltd also offers Visa and MasterCard Debit Cards.
Agent Banking
Following the successful launch of the Rocket services, DBBL realized the potential to increase
customer reach by offering Agent Banking services through agents for the rural customer who
does not have access to formal banking system even through Rocket.
The following services will be covered under DBBL Agent Banking:
 Collection of small value cash deposits and cash withdrawals (ceiling should be
determined by the management of the Bank from time to time in line with the guideline
of central bank );
 Inward foreign remittance disbursement;
 Facilitating small value loan disbursement and recovery of loans, installments;
 Facilitating utility bill payment;
 Cash payment under social safety net programmed of the Government;
 Facilitating fund transfer (ceiling should be as per limit given by Bangladesh Bank [BB]
from time to time);
 Balance inquiry; Statement inquiry
 Collection and processing of forms/documents in relation to account opening, loan
application, credit and debit card application from public;
 Post sanction monitoring of loans and advances and follow up of loan recovery.
 Receiving of clearing cheque.
 Other functions like collection of insurance premium including micro‐ insurance etc.
 ATM Withdrawal
 Merchant Payment
 Fund transfer [Person to Person (P2P), Person to Business (P2B), Business to Person
(B2P), Person to Government (P2G), Government to Person (G2P), Business to
Government (B2G), Government to Business (G2B)]

An Agent must provide, as a minimum, cash deposit and cash withdrawal services. The agent's
activities could be within normal course of banking business of the DBBL but conducted at
places other than bank premises/ ATM booths. Agent must provide services in the designated
business premises.
For smooth operation of Agent Banking function a separate Department in the name and style
"Agent Banking Department" has been created. The Department will serve wide range of
customers throughout the country by providing banking and financial services with the help of
mobile telecommunication devices/ computer system/ using biometric technology. Especially for
clients in remote locations, Agent Banking Department will help them deposit and withdraw
funds and other admissible services at banking agents, i.e., retail outlets that turn Deposit to
electronic funds and vice versa. With the help of the agent banking service customer can enjoy
the convenience of banking service at any place of the country.
Debit Cards
Dutch Bangla Bank is the market leader in Debit Cards. All Dutch Bangla Bank debit cards give
unlimited and free access to all Dutch Bangla Bank ATMs and POS nationwide. There are no
transactions or hidden costs associated with Dutch Bangla Bank cards and accounts. By default,
when opening a Dutch Bangla Bank account, all clients will receive the Dutch Bangla Bank
Nexus Classic card.
A debit card is more advanced than a credit card. Dutch Bangla Bank Debit cards also have more
features than credit cards. Dutch Bangla Bank Debit cards are also more secure, convenient and
cheaper than any credit card or debit card in the market. Debit cards can withdraw money from
account directly while a credit card has to issue a 'loan'.
Dutch Bangla Bank debit cards except Instant Card come with the client's photo printed on it and
require a secret PIN verification by the client. A credit card only requires a signature (which can
be forged) and no PIN verification for a transaction. That is why, for day-to-day banking, Dutch
Bangla Bank recommends debit cards. Each card comes with a PIN number which must be
protected at all times by the client. The PIN number is used as a password for withdrawing cash
at Dutch Bangla Bank ATMs and accessing Dutch Bangla Bank banking services.

All Debit Cards (For details Please click on each card)
Instant Debit Card Debit Card
VISA Debit Card Debit Card
 Card Differences
Cards Credit limit
Dutch Bangla Bank Nexus Silver 50,000
Dutch Bangla Bank Nexus Gold 50,001 to 20,00,000
Credit Cards
Dutch Bangla Bank has been issuing Visa EMV credit cards since November 2008 and
MasterCard EMV credit cards since April, 2010. Although Dutch Bangla Bank's entrance in
credit card services was delayed, it made a difference in the market by issuing the most secure
EMV credit cards from the first day. The EMV credit cards consist of Dynamic Data
Authentication (DDA) chip and Maltose operating system. It ensures additional software level
security for chips.

Due to security, other card-issuing banks in Bangladesh usually block customers' International
transactions and require the customer to make prior phone calls to the card-issuing bank to open
international transactions in their card. When a customer returns to Bangladesh, he/she has to call
the bank to block their cards' international transactions. Sometimes card-issuing banks replace
the customer's card when the customer visits high risk countries such as Malaysia, Thailand etc.
But with Dutch Bangla Bank's EMV enabled chip cards there is no such hassle as international
transactions are always open and the customer is fully secured. In addition to providing security
Dutch Bangla Bank also charges the lowest Interest rate in the market on purchase transaction
and has a maximum of 50 days interest free (grace) period.
Features & Benefits of DBBL Credit Card
Dutch-Bangla Bank Credit card offers you the most secured and rewarding way to fulfill your
daily lifestyle requirements.
First EMV Credit Card: DBBL is pioneer in bringing EMV chip based card for the cardholders
of Bangladesh. The Nexus Processor Chip guarantees that your card can not be copied. It is the
most secure card in the world.
Single Plastic, Multi Use: Multicurrency credit card means same plastic (card) can be used at
both home and abroad.
Lowest Interest Rate: Enjoy the lowest interest of 18% p.a. (@1.5% per month) for any
purchase and cash withdrawal.
No Issuance Fee: No issuance fee for new credit card.
Zero Annual/Renewal Fee: Get 100% waiver on annual/ renewal fee by earning reward points.
In general annual/ renewal fee is as low as Tk. 500/- based on the credit card limit.
Zero Late Payment Fee: No late payment fee for minimum payment. However, If the minimum
amount is not paid within the payment due date, additional 3% p.a. interest will be charged on
the unpaid minimum due amount.
Zero Cash Withdrawal Fee: DBBL has the largest ATM network facility all over Bangladesh.
Card holders can withdraw 100% of credit limit from any DBBL ATMs without any fee.
Worldwide 100% Cash Withdrawal Facility: Card holders can withdraw 100% of its credit
limit from any ATMs acceptable across the world.

50 Days Interest Free Period: Enjoy maximum 50 days interest free period for purchase
through POS & e-Commerce.
Fund Transfer Facility: Card holders can transfer fund upto 90% of the card limit to
cardholders' respective DBBL account.
Free Supplementary Cards: Enjoy two supplementary cards absolutely free for their dear ones.
Transaction Alert: Free SMS transaction alert for any transaction.
Flexible Payment Facilities: Payment of credit card bills through Branch, Internet Banking,
ATMs and Fast Tracks across the country.
Value plus Services of Credit Card
DBBL Loyalty Program: Using DBBL credit card is more rewarding than ever before. Reward
point is a special loyalty program that allows cardholders to earn points every time spending
money through your DBBL Credit Cards on POS &e-com transactions in locally and
internationally. You can earn up to 1 Reward Point for spending every Tk. 50/ USD 1.
Reward Program for VISA/MasterCard Classic & Gold Credit Card Holders
Reward Basis Point Slab Reward
For every BDT 50/USD
$1 =1 Point
Up to 499
points
500 to 999
points
1000 points
Above 1000
points
No facility
50% waiver on annual fee
BDT 1 for every 3 points earned beyond 1000 points which will
be credited to respective Credit card account.
Reward Program for VISA Platinum & MasterCard Titanium Credit Card Holders
Reward Basis Point Slab Reward

For every BDT 50/USD
$1 =1.5 Point
Up to 999
points
1000 to 1499
points
1500 points
Above 1500
points
No facility
BDT 1 for every 3 points earned beyond 1500 points which will
be credited to respective Credit card account.
0% InstaPay: Now DBBL credit cardholders has the option of convert their retail purchase or
bill payment above Tk. 5,000 in 3,6,9,12,18,24 Equal Monthly Installment at 0% Interest under
"0% InstaPay" program. You can purchase your desired product ranging from electronics,
furniture, mobile phone, automobiles etc. even pay your medical bill at our "0% InstaPay"
partners.
150+ Discount Partner: DBBL credit card holders can enjoy up to 50% discount facilities at our
150+ discount partner outlets ranging from shopping, dining, travelling, life style shops,
restaurants, fashion house, medical services, hotel & resorts etc.
Two Factor Authentication (2FA): DBBL introduces the globally standard security feature to
complete your online transaction. To do an e-commerce transaction, DBBL will issue temporary
time sensitive token for every online transaction. This makes sure that no one but you are the
charge of your account. Tokens are issued through your preferred channel i.e. Hardware Token
or Software Token.

Retail Banking Products
From the basket of Life Line, DBBL is offering a complete series of credit facilities for
individual service holders, professionals and self-employed person.
Clean Credit Lines: No cash security, No personal guarantee.
Key Features
Clean Credits are for any valid purposes for individuals only.
Loan range BDT 50,000 to BDT 1,000,000
Interest rate Competitive
Tenor 1 to 5 years
Repayment Equal monthly installment
Down payment No down payment required
Partial repayment Allowed
Early full settlement Allowed any time
Health Line: Key Features -
Hospitalization or other emergency medical needs
To purchase body fitness equipment
Education Line: Key Features -
For Higher education purposes
Tuition fees or other Educational expenses / to purchase of computer etc.
Professionals Line: Key Features –
Purchase of Professional equipment.
For Office renovation/decoration
Marriage Line: Key Features –
To meet marriage expenses for himself/herself
Marriages in the family
Travel Line: Key Features –
For Honeymoon trip, abroad or in the country
For Family trip, abroad or in the country
Festival Line: Key Features –
To enjoy festive period
Gift for the family / in laws / relatives
Dreams Come True Line: Key Features –
To decorate/renovate own Home/Car.
To purchase TV, Fridge, Furniture, Home Theatre, Motor Cycle, AC etc.

Care Line: Key Features –
Loan for fulfillment of parents need/dream
To purchase economy car for the family (i.e. to purchase low cost second hand car)
General Line: Any other legitimate purposes which do not fall under the above specific lines.
Secured Credit Lines: Flexible Facility with Minimum Security)
Auto Line: Key Features –
Refinancing of availed car
To purchase a new / re-conditioned car
Home Line: Key Features -
To purchase a flat
Home renovation
Refinancing of owned house property
Extension / construction of building
Full Secured Lines: Key Features
Loans for family expenses
Any other valid purposes
Secured / Clean OD Lines: Flexible OD lines in Debit Card
Recharge Line: Key Features -
OD facility against security
OD facility against salary
DBBL Future Line:
DBBL Deposit Plus Scheme (DPS)
DBBL Periodic Benefit Scheme (PBS)
DBBL Bochore Dergun Scheme (BDS)
DBBL Children Education Savings Scheme (CHESS)
DBBL Pension Plus (PP)
DBBL Deposit plus Scheme (DPS): This deposit scheme returns a handsome amount through
forced monthly savings without any cut in living style. Monthly savings can ranges from BDT
5000 to 5,000 and the maturity value at least 3 years and can be up to 10 years.
DBBL Periodic Benefit Scheme (PBS): PBS provides monthly or quarterly returns for a
fixed investment/deposit and pays back the principle amount of maturity. PBS ranges from BDT
50,000 to BDT 5,000,000.
Terms Investments Monthly Benefit Quarterly Benefit
3 years 100,000 900 2715
5 years 100,000 915 2760

Recommendations
DBBL has made a great success in the Banking sector for its outstanding performance since
inception. Despite tremendous success in different parts of banking arena, DBBL needs to take
some initiatives for further improvement and reputation in its performance. The
recommendations are mentioned below:
1. The Bank may offer facilities such as Visa Card, ATM Service to the customer to compete
with other private and foreign Commercial Banks.
2. The Bank may introduce on-line banking system to compete with its competitors.
3. The Bank may launch ―Consumer Investment Scheme‖ to attract more customers as well as to
earn more profit.
4. The Bank may start more branches in the potential area of Dhaka, Chittagong and other city
area in the country to make a good network all over the country.
5. The Bank may introduce more promotional programs to promote its products and services to
the people.
6. The Investment (Loan & advances) sanction process may be easier so that the customers can
feel convenient to take investment from the bank.
7. The Bank Authority may always be aware of its quality service because banking is a service-
oriented business.
8. The Bank may patronize the small and medium level entrepreneurs for small & medium level
industrialization.
9. The Bank may hunt low cost deposit from the depositor to provide borrowing customers
reduced profit rate.
10. The Bank may train all officers and executives to provide quick and quality service to the
customers.
11. The Bank may introduce special scheme for their corporate customer or service holders like
doctors, engineers, lawyers, teachers and other professionals.
12. The Bank may be careful to choose its borrowing customer to avoid Classified Investment
(Loans & Advances).
13. The bank may focus on the causes that reduced some percentage of the ratios.
14. More efficiently use its assets.

Conclusion
Banking sector plays pivotal role in building up the economy of a country. It is said that the
scenario of banking sector presents the situation of an economy. The 57 banks in Bangladesh
play this critical role and these banks are going with the direction of Bangladesh Bank the central
bank of Bangladesh. These banks are facing various types of challenges and enough guidelines
are prescribed by the central bank to address those challenges. Banks follow the rules along with
their own strategies to address those challenges. Dutch-Bangla Bank Ltd. one of the most
successful banks is playing a pivotal role and creating value for the customers through various
products and services.

References
[1] Challenges facing the banking sector. (2015, December 06).
Retrieved fromhttp://old.thefinancialexpress-bd.com/2014/01/21/14753
[2 [5] BB RAISES RESERVE REQUIREMENT FOR BANKS. (2015, December 06).
Retrieved fromhttp://www.thedailystar.net/bb-raises-reserve-requirement-for-banks-30061
[3] Banking sector challenges in Bangladesh. (2015, December 06). Retrieved from
http://archive.thedailystar.net/newDesign/print_news.php?nid=154934
[4] Banking sector of Bangladesh past present and challenges ahead. (2015, December 06).
Retrieved fromhttp://thedailynewnation.com/news/46666/banking-sector-of-bangladesh-past-
present-and-challenges-ahead.html
[6] Banking on sound strategies to overcome challenges. (2015, December 06).Retrieved
fromhttp://www.chinadaily.com.cn/bizchina/2012-11/16/content_15936399.htm
[7] Banking industry, associated risks and Mitigation Strategies. (2015, December
06).Retrievedfromhttps://www.academia.edu/1470560/Banking_Industry_Associated_Risks_and
_Mitigation_Strategies
[8] https://dutchbanglabank.com/internet-banking/twofa-ib.html
[9] https://en.wikipedia.org/wiki/Dutch_Bangla_Bank
[10] https://www.dutchbanglabank.com/
[11] http://www.bb.org.bd
[12] https://en.wikipedia.org/wiki/Bangladesh_Bank
[13] Annual report of Dutch Bangla Bank 2015, 14, 13.

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