Assignment on Banking Profile of EBL Bank Limited

Introduction:

With a vision to become the bank of choice and to be the most valuable financial brand in Bangladesh, Eastern Bank Ltd. (EBL) began its journey in 1992. Over the years EBL has established itself as a leading private commercial bank in the country with undisputed leadership in Corporate Banking and a strong Consumer and SME growth engines. EBL’s ambition is to be the number one financial services provider, creating lasting value for its clientele, shareholder, and employees and above all for the community it operates in.

Eastern Bank Limited provides commercial banking products and services to the corporate, mid-market, and retail segment in Bangladesh and internationally. It also provides financial products and services, including corporate deposit accounts, syndicated financing, trustee and agency services, term loan, project finance, export-import financing, working capital and other finance, bonds and guarantees, investment and business counseling, infrastructure finance, and cash management services, as well as treasury, securities, and custody services. In addition, the company makes investments, placements, and borrowing in money and capital markets; offers various credit and debit cards; and deals with foreign exchange business, as well as provides corporate banking, Internet banking, student banking, and Hajj remittance services, such as handling foreign demand drafts and foreign telegraphic transfers in Saudi Arabian and local currency. As of June 30, 2010, it had 39 branches, 26 SME centers, 60 ATMs, and 4 active kiosks. Eastern Bank Limited was founded in 1992 and is headquartered in Dhaka, Bangladesh.

To become the bank of choice by transforming the way we do business and developing a truly unique financial institution that delivers superior growth and financial performance and be the most recognizable brand in the financial services in Bangladesh. They deliver service excellence to all our customers, both internal and external & create an enabling environment and embrace a team based culture where people will excel & ensure to maximize shareholder’s value. Systems, procedures and training to maintain a cohesive and professional team in order to achieve service excellence.

EBL Launches School Banking:

Eastern Bank Ltd. (EBL) has launched “EBL Junior”, a savings account for students, with a view to include the young population of the society under banking umbrella and help students learn the benefits of savings from an early age.

EBL Managing Director & CEO Ali Reza Iftekhar formally launched the new product of the bank at a simple event organized at RAJUK Uttara Model College today ( February 23, 2011). School students and parents were present at the ceremony. Any student aged between 11 and 17 years can open this account at all EBL branches jointly with his/her parent. This account will instill savings habit into the students and familiarize them with modern banking facilities EBL offers. The account comes with Internet Banking, ATM and Cheque book facilities which need to be operated by the parentsonly.

EBL Junior offers 6% interest on daily balance to be paid semi-annually. This will help the fund in the account grow at a faster rate than the conventional savings account. A parent can use the account to save for the future expenses of his/her child like higher education, marriage or for any purpose.

EBL will gradually cover all the leading schools in major areas of the country to promote the student banking products and services.

EBL launches Limited Edition Visa Prepaid Cards:

Eastern Bank Ltd. has launched limited edition Visa prepaid cards on Sunday, Feb 13 to mark the sporting extravaganza taking place in the country. Representing colour scheme of the 10 Test playing nations – these limited edition prepaid cards are not only first of its kind in Bangladesh but the world over. Anyone can buy these ‘ My team, my colour’ themed prepaid visa cards from the select EBL branches in Dhaka, Chittagong, Sylhet and Bogra and use it over 10 thousand shops, restaurants and ATMs countrywide. The card is sold at zero balance and a buyer can load any amount up to BDT 50,000 (fifty thousand) as per his or her requirement. There is no separate loading or renewal fee for the Card.

Eastern Bank Ltd. Unveils EW Visa Corporate Card in Bangladesh:

Eastern Bank Ltd. has unveiled a new Visa corporate card in Bangladesh. The EBL Visa corporate card is designed to make companies’ payments easier. Card users will be able to handle their official and personal expenditures while travelling abroad for business, said Shah in a press briefing at Sonargaon Hotel. Global acceptance, ATM cash advance facility, comprehensive insurance coverage and global customer service are the main features of the card. For individuals, no annual fees are associated with the card. But companies will have to pay an annual membership fee for the services.

Eastern Bank Ltd Introduced Two New Loan Products, EBL Uddom and EBL Invoice Factoring:

Eastern Bank Ltd. introduced two new loan products, tailored for small and medium enterprises (SMEs). The loan products namely EBL Uddom and EBL Invoice Factoring. Under the package, the entrepreneurs will have to pay 16% interest and repay in a reducing balance system. Equal monthly instalment facility is available within four years. The SME clients will be given loans against their bills under EBL Invoice Factoring. The entrepreneurs can take loans to manage their running capital. Small and medium enterprises often suffer from working capital crisis due to a delay in obtaining payments against their bills — after supplying products or services. This new product will enable them to get cash support to keep their business running smoothly. One can get loans up to BDT 50 million at a 13% rate, while the bank will finance up to 80% of his or her total arrears to the clients. The entrepreneurs will have to submit invoices from their buyers or debtors that include EBL’s corporate clients, multinational corporations, banks, non-bank financial institutions, insurance companies and non-government organisations. As security, an entrepreneur will need to deposit 50% of the loan amount as fixed deposit with a competitive interest rate, the managing director said. EBL has 25 SME centres across the country, and plans to launch more products for the sector.

EBL Prodct Baktet:

Bangladesh Banking Sector has grown from strength to strength over the past one decade and is fiercely competitive, especially in the Consumer Banking segment. EBL offers a wide range of depository, loan and card products to cater virtually for every customer segment. From Student Banking to Priority Banking to Platinum card EBL has almost all banking products in its repertoire. The product basket is rich in content featuring different types of Savings & Current Accounts, Personal Loans, Debit Cards, Credit Cards, Pre-paid Cards, Internet Banking, Corporate Banking, SME Banking, Investment Banking, Treasury & Syndication services. The customers are served through a network of 49 Branches, 74 ATMs and 6 Kiosks countrywide. EBL has its presence in 11 major cities/towns in the country including Dhaka, Chittagong, Sylhet, Khulna, Rajshahi & Cox’s Bazar.

Corporate Banking Products & Services:

Corporate Banking fulfills various banking needs of large Corporate Houses, as well as Financial Institutions & Micro-Credit Organizations. In the process, EBL has gained the confidence of the corporate world and established a unique brand image of sound efficiency and immediate delivery. We are now present in key business districts of the country serving both local and multi-national corporate houses, with ready access to our team of relationship managers, product and sector specialists.

Our product assortment ranges from short term financing of day to day business operations to long term loans for expansion of your business. We work with you to understand your specialized needs and design tailored and structured solutions for your business.

Their products cover the following broad categories:

Industrial and Project Financing

Investments/ Capital Market Services

Transaction services

Trade Services and FX

Deposits & Cash Management Solutions

Offshore Banking Services:

EBL Offshore Banking Unit (EBL OBU) commenced its operation in May 19, 2004. OBU offers limited trade transactions, as allowed by Bangladesh Bank, to finance mainly to Fully Foreign Owned Companies, and in limited cases to Joint Venture Companies provided permission from Board of Investment (BOI). Following services are available in Offshore Banking Unit of EBL:

Opening of Documentary Credit

Bill Financing & Bill Discounting

Trade Advisory Services

Local and International trade business is always challenging. Right from the selection of buyers /suppliers to make shipments of goods, hundreds of issues are involved. You need to make proper business decisions and timely execution of the decisions is very vital in order to succeed in this perplexing area. Rely on us! We are here to support you all the way with our long experiences and expertise to handle various types of trade business, both domestic and international. Our team of trade experts is always ready to give you the right advices and proper counseling you need to make the most efficient use of your time and resources that will ultimately turn your business a successful one.

Selected advisory services are listed below:

• Analysis of work processes in your import and export business
• Minimization of international risks
• Choosing delivery and payment conditions
• Preparation of commercial documents
• Monitoring payments
• Keeping track of your guarantee portfolio

Guarantee Services:

Guarantee assumes an important role in international trade as an instrument for securing performance. EBL Trade Services is offering you a full range of guarantee services and acting as your supporting partner with decades of experience and extensive expertise in guarantee business. Our aim is to provide you with highly professional solutions to cover possible performance and financial risks arising from business transactions. These solutions endeavor to achieve the greatest benefit to all parties concerned according to your needs and expectations. We are involved in issuance of guarantee with value added service of checking, commenting and drafting guarantee conditions or complete wordings in line with local and international standards and practice for specific cases.

Your business can choose from different classes and types of guarantees offered by us, each designed to cover varying trading circumstances:

• Advance Payment Guarantee
• Tender Guarantee/Bid Bond
• Performance Bond
• Security Bond
• Retention Bond
•  Omrah Hajj Guarantee

Export Services

Our protracted and all-round capabilities in dealing with various kinds of export business make us your right partner who can help you to safeguard your business and improve your ability to trade in home and abroad. Rely on us in exporting wherever you want to and also on preparing export documents as well as timely repatriation of your export payments. We are also available to support your sourcing of raw-materials by providing pre-shipment financing. In case of instant liquidity needs after making shipments, post-shipment financing options are there to make you comfortable. Our Corporate/SME Banking relationship teams are ready to collect your service requirements, which we assure you to process in the fastest possible way under the purview of EBL Credit Policy and proper approval process.

You don’t need to be a customer of EBL for advising your Export LCs received from anywhere in the world. We are here to advise your documentary credits instantly and immediately upon completion of required formalities.

The variety of export services we offer includes:

• Documentary Credit Advising
• Documentary Credit Transfer
• Pre-Shipment Financing
• Post-Shipment Financing
• Export Collections

Import Services

Keeping in mind that Bangladesh is basically an import-based country, EBL Trade Services is well-prepared to serve variety of import businesses with an assortment of import products and services. Talk to our relationship managers from Corporate/SME Banking as well as trade professionals from Trade Services regarding your specific needs, they are just ready to help you chalk out the solution suitable to your business. What’s more, with the support of our ever increasing relationships with correspondent banks globally, you can rest assured that we are available to assist you, wherever in the world you do business. Furthermore, whenever your LC needs to be ‘add confirmed’, we can instantly arrange the facility using our strong partnerships with the world’s leading banks and multilateral organizations like IFC, ADB and FMO.

Following is the range of import services available with us:

•  Documentary Credit
• Import Bills Handling
• Import Finance
• Shipping Guarantee