General Banking and HRM Practices with Special Reference to IFIC Bank Ltd

General Banking and HRM Practices with Special Reference to IFIC Bank Ltd

Executive Summary

 It was a privilege for me to do a roport on the general banking on HRM practices with special reference to IFIC Bank Ltd.I uses my personal experience of IFIC Bank.

 My activities behind creating this report include:

 1. I studied the layout of IFIC Bank & various services of IFIC Bank.

2. I describe as much detail of different types of banking system means private bank, public bank & foreign bank from available sources.

 The various chapter of this report are:

1. An overview of banking sector in Bangladesh.

2. A study of selected bank in Bangladesh.

3. The function of IFIC bank Ltd.

4. The HR policies &practices in IFIC bank.

5. Conclusion &Recommendation.

 In chapter 1:

I have tried to describe the overview of banking in Bangladesh. Actually I try to describe the banking history development.

It is believed that the money of Jagat Sheth together with the sword of the English brought about the fall of Nawab (emperor) Siraj-Ud –Daulah in Bengali in 1757.

In history, Jagat Sheth’s house is known as the kingpin of the Plessey conspiracy. What is little known is its monopoly of the minit, currency business and banking sectors of Bengal, Bihar and Orissa for over 100 years between the 18th and 19th centuries.

The house had served as the East India Company’s official banker for years.

Jagath Sheth meaning ‘Banker of the World’ was a title conferred on Fateh Chand, a rich marwari merchant in Bengal.

Modern banking evolved in Bengal during the British period. The Hindustan Bank was established in Calcutta in 1700.But the Bengal Bank, established in 1784,is considered to be the first British-patronized modern bank in India to start trading in credit and money. Also there were loan offices in major towns in the then east Bengal.

Sonali Bank is the largest among the NCBs while Pubali is leading in the private ones. Among the 12 foreign banks, Standard Chartered has become the largest in the country. Besides the scheduled banks, Samabai (Cooperative) Bank, Ansar-VDP Bank, Karmasansthan (Employment) Bank and Grameen bank are functioning in the financial sector. The number of total branches of all scheduled banks is 6,038 as of June 2000. Of the branches, 39.95 per cent (2,412) are located in the urban areas and 60.05 per cent (3,626) in the rural areas. Of the branches NCBs hold 3,616, private commercial banks 1,214, foreign banks 31 and specialized banks 1,177.

Bangladesh Bank (BB) regulates and supervises the activities of all banks. The BB is now carrying out a reform program to ensure quality services by the banks.

In chapter 2:

I have tried to explain of Ten (10) selected Banks in Bangladesh. Here are five (5) Private Bank, Three (3) Public Bank and Two (2) Foreign Bank.

Five Private Banks are Prime Bank, Dhaka Bank Ltd, Mercantile Bank Ltd, Al-Arafah Islami Bank Ltd and Jamuna Bank Ltd.

Three Public Bank are Sonali Bank, Janata Bank and Agrani Bank.

Two Foreign Bank are Standard Chartered and HSBC Bank.

 After studied those banks, I tried to describe their various activities based on their various department. And here also describe their Historical Background, Functioning Activities and Management Hierarchy of Bank.

In chapter 3:

I explained the function of IFIC Bank.

I tried to represent a background of IFIC Bank, Organgram, Managerial Hierarchy of IFIC, Employees and Function e.t.c. This chapter also includes various deposits of IFIC Bank and their services.

IFIC Bank has 87 branches in Bangladesh and average employee of total branch is 2500.Types of deposits can be classified in to two categories, this are Operative A/C and Non-Operative A/C.

Operative A/C is Current deposit A/C, Saving deposit A/C and STD A/C.

 Non-Operative A/C is FDR (Foreign direct investment) A/C, PSS (Pension saving scheme) A/C and MIS (Monthly income scheme) A/C.

In chapter 4:

I explain the HR policies and practices in IFIC Bank.

 The Bank has a Human Resource Development & Research Department to develop human resources internally. The Academy is equipped with professional library, modern training aids professional faculty and other facility. It is now under Personnel & Human Resource Development & Research Division. The Academy conducts regularly foundation courses, specialized courses and seminars on different areas of banking to take care of the professional needs.

All kind of situations, internal and external, related to human resource is monitored through the HR department. Eventually this bank uses all the basic internal functions of HR to run the entire organization.

Recruitment is done once every year according to the requirements of IFIC BANK. After the resumes are gathered, a team is formed to check the applicants’ background whether they have any bad records or not and moreover family history is also checked. After the background is checked all the certificates are send to education boarded for verification. In addition, past service records are being verified so that the management can get the assurance of hiring competent employees.

Human Resources Development is focused on recruitment and in-house training for both on the job and off the job Bank staff members through the Bank’s Academy.

 Promotion will be considered as “VERTICAL ELEVATION” in organizational hierarchy usually with enhances pay, allowance, & status.

The HR department usually designed and administers the company’s performance appraisal system. Centralization ensures uniformity. Although the HR department may develop different approaches for managers, professionals, workers and other groups, uniformity within each group is needed to ensure comparability of results

 Welfare activities refer to non-monetary benefits offered and provided to employees in lieu of the services provided by them to the organization. They include Leave Policy, Overtime Policy, Car policy, Hospitalization, Insurance, Leave travel Assistance Limits, Retirement Benefits, Holiday Homes.

In chapter 5:

This chapter deals with the recommendation and concludes my report by giving its conclusion. Recommendation includes in order improve HR policies of IFIC Bank.

An Overview of Banking Sector in Bangladesh


A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly or through capital markets. A bank connects customers with capital deficits to customers with capital surpluses.

Banking is generally a highly regulated industry, and government restrictions on financial activities by banks have varied over time and location. The current sets of global bank capital standards are called Basel II. In some countries such as Germany, banks have historically owned major stakes in industrial corporations while in other countries such as the United States banks are prohibited from owning non-financial companies. In Japan, banks are usually the nexus of a cross-share holding entity known as the keiretsu.

An organization, usually a corporation, chartered by a state or federal government, which does most or all of the following: receives demand deposits and time deposits, honors instruments drawn on them, and pays interest on them; discounts notes, makes loans, and invests in securities; collects checks, drafts, and notes; certifies depositor’s checks; and issues drafts and cashier’s checks.


 It is believed that the money of Jagat Sheth together with the sword of the English brought about the fall of Nawab (emperor) Siraj-Ud –Daulah in Bengali in 1757.

In history, Jagat Sheth’s house is known as the kingpin of the Plessey conspiracy. What is little known is its monopoly of the minit, currency business and banking sectors of Bengal, Bihar and Orissa for over 100 years between the 18th and 19th centuries.

The house had served as the East India Company’s official banker for years.

Jagath Sheth meaning ‘Banker of the World’ was a title conferred on Fateh Chand, a rich marwari merchant in Bengal.

 The Jagat Sheth House was the most influential bank at a time when there was no formal or regular banking in the subcontinent. They had their merchant and loan offices in Dhaka, Culcutta (now kolkata), Murshidabad..These loan offices extended their lending activities to rural areas and gave short, medium and long-term credit at a 40 -50 percent rate of interest.

In the 18th century, Subrabankis, Sahas and Basaks came to grab a share of the business and banking activity with the help of other businessmen, who were Hindus.

 Modern banking evolved in Bengal during the British period. The Hindustan Bank was established in Calcutta in 1700.But the Bengal Bank, established in 1784,is considered to be the first British-patronized modern bank in India to start trading in credit and money. Also there were loan offices in major towns in the then east Bengal.

“Although the British rules established and ran the Bank of Bengal with the local revenue, it did not lend to the business and the people of the Bengal,” said Dr. Chittabrata Palit, professor (emeritus) of history at Jadavpur University in Kolkata..

 The historian is in Dhaka to attend a three day inter national seminar on ‘the history heritage and urban issues of capital Dhaka’, as part of celebrating the completion of 400 years of capital Dhaka. Asiatic Society of Bangladesh is organizing the event at the Senate Building in Dhaka University.

 “Then Daraknath Tagore came up with Union Bank to help Bengali businesses. But the bank was collapsed in 1840 due to some British companies’no return of loans that they took from the bank” said Dr. Chittabrata, who has 46 publications, some of which have focused on the evolution of the banking history in Bengal.

 Md. Salah Uddin, assistant professor of Jagannath University, who presented a paper on ‘banking in Dhaka since 1757’, said Dacca Bank established in 1846 with a paid –up capital of Tk.3 lakh, was the first modern bank headquartered in Dhaka.

“Nawab Abdul Gani was one of the sponsor of the bank”, he said..

During the Sawdeshi movement in the early 1900s, the Bengalis made an entrance in a big way in Banking. At that time, cooperative, agriculture and commercial banking also flourished.

The banking sector was reshaped after the separation of India and Pakistan in 1947.Only a few state-owned banks had their activities in East Pakistan (now Bangladesh) with a huge concentration in Dhaka. Some Bengali entrepreneurs established the now Pubali Bank in1959, to support their fellow business with loans.

The banking sector had to start a fresh journey in the war-ravaged Bangladesh after independence in 1971. The government took over all banks under a nationalization order in 1972.

“The sector got a new and dynamic shape after the government took up the privatization policy in 1983”, said Salah Uddin.Pubali Bank and Uttara Bank were denationalized and the sector opened up to the private sector. By 1985, a dozen new banks hit the market under private ownership Now 48 banks operate in the country, of which, 39 are privately owned, including nine foreign banks.Dr. Robert Gallagher, a UK delegate, was amused to know that all of these banks counted profits in 2009 when big banks in his country collapsed due to the global economic meltdown.

“It is a great success. But the credit should go to the ancestors who struggled to set up a bank in the 18th century”, said Salah Uddin.


The number of banks in all now stands at 49 in Bangladesh. Out of the 49 banks, four are Nationalized Commercial Banks (NCBs), 28 local private commercial banks, 12 foreign banks and the rest five are Development Financial Institutions (DFIs).

 Sonali Bank is the largest among the NCBs while Pubali is leading in the private ones. Among the 12 foreign banks, Standard Chartered has become the largest in the country. Besides the scheduled banks, Samabai (Cooperative) Bank, Ansar-VDP Bank, Karmasansthan (Employment) Bank and Grameen bank are functioning in the financial sector. The number of total branches of all scheduled banks is 6,038 as of June 2000. Of the branches, 39.95 per cent (2,412) are located in the urban areas and 60.05 per cent (3,626) in the rural areas. Of the branches NCBs hold 3,616, private commercial banks 1,214, foreign banks 31 and specialized banks 1,177.

 Bangladesh Bank (BB) regulates and supervises the activities of all banks. The BB is now carrying out a reform program to ensure quality services by the banks.


 Bangladesh Bank (BB) has been working as the central bank since the country’s independence. Its prime jobs include issuing of currency, maintaining foreign exchange reserve and providing transaction facilities of all public monetary matters. BB is also responsible for planning the government’s monetary policy and implementing it thereby.

 The BB has a governing body comprising of nine members with the Governor as its chief. Apart from the head office in Dhaka, it has nine more branches, of which two in Dhaka and one each in Chittagong, Rajshahi, Khulna, Bogra, Sylhet, Rangpur and Barisal.

 SERVICES (Accounts, FDR, PDS, Deposit Scheme)

Current Account

Generally this sort of account opens for business purpose. Customers can withdraw money once or more against their deposit. No interest can be paid to the customers in this account. If the amount of deposit is below taka 1,000 on an average the bank has authority to cut taka 50 from each account as incidental charge after every six months. Against this account loan facility can be ensured. Usually one can open this account with taka 500. One can open this sort of account through cash or check/bill. All the banks follow almost the same rules for opening current account.

Savings Bank Account

 Usually customers open this sort of account at a low interest for only security. This is also an initiative to create people’s savings tendency. Generally, this account is to be opened at taka 100. Interest is to be paid in June and December after every six months. If money is withdrawn twice a week or more than taka 10,000 is withdrawn (if 25% more compared to total deposit) then interest is not paid. This account guarantees loan. Almost all the banks follow the same rules in the field of savings account, except foreign banks for varying deposit. On an average, all the banks give around six percent interest.


Some Banks render special services to the customers attracting other banks.


Customers need an Internet access service. As an Internet Banking customer, he will be given a specific user ID and a confident password. The customer can then view his account balances online. It is the industry-standard method used to protect communications over the Internet.

To ensure that customers’ personal data cannot be accessed by anyone but them, all reporting information has been secured using Version and Secure Sockets Layer (SSL).


Home banking frees customers of visiting branches and most transactions will be automated to enable them to check their account activities transfer fund and to open L/C sitting in their own desk with the help of a PC and a telephone.


Electronic Banking Service for Windows (EBSW) provides a full range of reporting capabilities, and a comprehensive range of transaction initiation options.

The customers will be able to process all payments as well as initiate L/Cs and amendments, through EBSW. They will be able to view the balances of all accounts, whether with Standard Chartered or with any other banks using SWIFT. Additionally, transactions may be approved by remote authorization even if the approver is out of station.


Automated Teller Machine (ATM), a new concept in modern banking, has already been introduced to facilitate subscribers 24 hour cash access through a plastic card. The network of ATM installations will be adequately extended to enable customers to non-branch banking beyond banking.


Tele Banking allows customers to get access into their respective banking information 24 hours a day. Subscribers can update themselves by making a phone call. They can transfer any amount of deposit to other accounts irrespective of location either from home or office.


Swift is a bank owned non-profit co-operative based in Belgium servicing the financial community worldwide. It ensures secure messaging having a global reach of 6,495 Banks and Financial Institutions in 178 countries, 24 hours a day. SWIFT global network carries an average 4 million message daily and estimated average value of payment messages is USD 2 trillion.

Swift is a highly secured messaging network enables Banks to send and receive Fund Transfer, L/C related and other free format messages to and from any banks active in the network.

Having SWIFT facility, Bank will be able to serve its customers more profitable by providing L/C, Payment and other messages efficiently and with utmost security. Especially it will be of great help for our clients dealing with Imports, Exports and Remittances etc.


The monetary and credit policy for the financial year that ended in June, 2000 was formulated with the objective of full utilization of domestic resources and rapid economic growth through priorities for agriculture, industry, export, and expansion and strengthening of the private sector, at the same time keeping inflation within tolerable limits. A modern expansionary monetary and credit policy was adopted in order to make good the losses to agriculture, industry, and infrastructure by the devastating floods of 1998. After the flood the economy remained sluggish in the first quarter of 1999-2000 and the private sector demand for credit shrank. In view of this, the Annual Development Program (ADP) was expanded and development activities in the private sector were geared up. As a result, the public sector absorbed credit at an accelerated rate. Though credit to the private sector picked up towards the end of the year, the overall annual growth was smaller than programmed, although gross domestic credit expanded a little faster than projected. Money supply increased by 15.3% in 1999-2000 compared to the expansion of 8.6% in the preceding year.


Narrow Money increased by Tk. 2,631.90 crores or 15.3% to Tk.19881.30 crores in 1999-2000. Of the components of Narrow Money, currency outside banks went up by Tk.1489.40 cores or 17.2% to Tk.10176.00 cores, and demand deposits went up by Tk.1142.50 crores or 13.3% to Tk.9705.30 crores.


Broad Money increased by Tk.11735.70 crores or 18.6% to Tk. 74,762.40 crores in 1999-2000 compared to the increase of 12.8% in the preceding year. Of the components of Broad Money, Narrow Money increased by 15.3% and time deposits rose by 19.9% compared to the increase of 8.6% in Narrow Money and 14.5% in time deposits in the preceding year. The shares of currency outside banks, demand deposits and time deposits in Broad Money stood at 13.6%, 13.0%, and 73.4% respectively on 30th June, 2000 compared to 13.8%, 13.6% and 72.6% respectively on 30th June, 1999. Expansion of credit to the private sector, government sector (net), public sector, and other assets (net), along with a surplus in net foreign assets contributed to the expansion of Broad Money.


 Reserve Money increased by Tk.2321.80 crores or 15.7% to Tk.17064.50 crores in 1999-2000 compared to the increase of 8.3% during the preceding year. Of the components of Reserve Money, currency outside banks increased by Tk.1489.40 crores or 17.1% compared to the increase of Tk.533.30 crores or 6.5% during the preceding year. Scheduled banks balances with the Bangladesh Bank increased by Tk.770.90 crores or 15.3% in 1999-2000 compared to the increase of Tk.488.20 crores or 10.8% in the preceding year. Their cash in tills increased by Tk.61.50 crores or 6.0% as against the increase of Tk.103.60 crores or 11.2% in the preceding year. The increase in Bangladesh Bank’s credit to the government (net) by Tk.1,738.10 crores and net surplus in the foreign sector by Tk.1,262.40 crores played the main role in exerting expansionary influence on the Reserve Money. However the decline of Tk.333.60 crores and Tk.44.90 crores in the borrowings by the scheduled banks and other financial institutions respectively along with the fall of Tk.300.20 crores in other assets (net) partly offset the expansionary impact of those sectors.


Total domestic credit increased by Tk.8581.20 crores or 13.6% to Tk. 71,489.00 crores (including adjustment of bonds issued by the government) in 1999- 2000 as compared to the increase of Tk.7267.60 crores or 13.1% in the preceding year. Expansion of credit to the government, private, and public sectors to the extent of Tk.3524.30 crores (31.3%), Tk.4906.10 crores (10.7%), and Tk.150.80 crores (2.5%) respectively contributed to the expansion in total domestic credit in 1999-2000. Credit to the government and private sector had increased by 21.3% and 13.8% respectively, while credit to the public sector declined by 3.7% in the preceding year.


The outstanding level of bank credit (excluding foreign bills and inter-bank items) increased by Tk.5,123.30 crores or 10.3% to Tk.54,646.10 crores in 1999- 2000 as compared to the increase of 12.4% in the preceding year. Of the components of bank credit, advances increased by Tk.4892.70 crores or 10.3% and the bills purchased and discounted went up by Tk.230.60 crores or 11.3%.


Bank deposits (excluding inter-bank items) increased by Tk.11044.70 crores or 18.6% to Tk.70,278.70 crores in 1999-2000 compared to the increase of 14.2% in the preceding year. Of this increase , time deposits went up by Tk.9,103.80 crores or 19.9% to Tk.54,881.10 crores, government deposits by Tk.723.60 crores or 14.8% to Tk.5,615.20 crores and demand deposits by Tk. 1,142.50 crores or 13.3% to Tk.9,705.30 crores. On the other hand, restricted deposits increased by Tk.74.80 crores in 1999-2000.


Statutory CRR with Bangladesh Bank was lowered for the scheduled banks to 4.0% of their liabilities (demand plus time deposits) (excluding inter-bank deposits) from 5% with effect from 1st October, 1999.


The Bank Rate was lowered from 8.0% to 7.0% on 29th August, 1999 and remained unchanged through 30th June, 2000.



 Except for the transformation of three nationalized commercial banks into public limited companies which are now known as state-owned commercial banks (SCBs), the structure of the financial system remains almost unchanged since June5. Bangladesh’s financial sector consists of the Bangladeshi Bank (the central bank), four nationalized commercial banks (NCBs), 5 state-owned specialized banks (SBs), more than 30 private sector commercial banks (PCBs) and more than 9 foreign commercial banks (PCBs). The rest of the financial sector consists of more than 29 non-bank financial institutions, the capital market, the insurance companies, the cooperative banks and the micro-finance institutions. Activities in the financial sector which was dominated by the inefficient NCBs a few years back are being replaced by the relatively more efficient PCBs and PCBs. The share of the financial sector in GDP is about 1.70% (FY06), which has remained quite steady over time. The contribution to GDP mostly comes from the banking sector. Its share in GDP has declined from 1.35 per cent in FY1995 to 1.27 in FY 2006. The contribution of insurance to GDP, although has shown a rising trend, is less than 0.40 per cent. Overall employment in the financial sector is about 0.10 million with the private sector employment rising while the public sector employment falling.

Currently, the sector contributes about 1.50 per cent in government revenue.

Banking Sector

Savings products: Deposit rate offered by NCBs exceeded those of PCBs and

FCBs during the 1990-2002 period. However, since 2004 PCBs are paying higher

deposit rates leading to faster growth in deposit mobilization. The deposit rate paid

by FCBs has been consistently lower than those paid by the other two groups. Lending rate charged by PCBs has been the highest, followed by that of NCBs and FCBs till 2002. Since 2004 lending rate of FCBs exceeded that charged by NCBs though it remained lower than that of PCBs. The share of SCBs in total deposit fell during Q3 2007, while the share of PCBs increased. Between December 2001 and September 2007, the share of rural deposits declined while the share of urban deposits increased from 80.4 percent to 86.9 percent. Total deposit mobilization by the banking system as percentage of GDP has been growing over time and stood at 43.1 percent at the end of September 2007.

 Loan products: Disbursement of bank credit somewhat slowed down during the first

three quarters of 2007 largely due to low demand by the borrowers. Nominal bank credit grew by 8.6 percent during the first three quarters of 2007. The disbursement of term lending to industrial sector in Q2 FY08 showed a 7.0 percent growth over previous quarter and was 26.5 percent higher compared with the level of Q2 FY076.

Interest rate spread: The IRS of commercial banks showed a declining trend till the end of 2004 after which a rising tendency is observed Available data, moreover, show that IRS in Bangladesh is higher than the spread in some of the neighboring countries (e.g. 5.25 in India in September 2007) indicating the need to reduce the spread in Bangladesh.

FCBs have been able to target a niche market of relatively large depositors. Since there exists economies of scale in operating large transactions resulting in lower average costs, FCBs are able to offer advances at somewhat lower interest rate relative to PCBs. This may, however, also be a reflection of two other factors. First, FCBs, set lending rate at lower level to remain competitive in business. Second, unlike NCBs and PCBs they are not heavily burdened with non-performing loans. Foreign investment in the banking sector has brought modern technology like computerization of banking operations, introduction of ATM services, Smart Card, Credit/Debit Card, and On Line Banking.

These services have quickly been adopted by the PCBs. The banking sub-sector in

Bangladesh has been greatly liberalized in the course of the past one and a half

decades. FCBs and PCBs hardly operate in rural areas. Currently the high-risk loans such as agricultural loans are primarily supplied by the NCBs and the SBs. The contribution of the PCBs and the FCBs in this regard is very small. Further liberalization of the banking sector may yet shift away low-risk businesses from the NCBs to the FCBs and PCBs and it may greatly undermine the rationale for equity as opposed to efficiency.

An Study of Selected Bank in Bangladesh


 Bangladesh has a mixed banking system comprising nationalized, private and foreign commercial banks. Bangladesh Bank is the central bank of the country and is in charge of monetary policies of the Government and all commercial banks. After independence the govt. of Bangladesh initially nationalized the entire domestic banking system and proceeded to reorganize and rename the various banks. After that in nineteen eighties privatization decision of commercial banks revolutionize the overall banking system. At present total banking systems of Bangladesh consists of four state owned banks, four specialized banks, thirty private commercial banks & nine foreign banks. Financial performance evaluation of bank is important for all stake holders: owners, Investors, debtors, creditors, government, depositors, bank managers and regulators. The performance of banks gives directions to the stake holder of decision making. For example it gives direction to the debtor and the investor to make decision that either they should invest money in bank or invest some where else. Similarly, it flashes direction to bank managers whether to improve its deposit service or loan service or both to improve its finance. Regulatory agencies and government are also interested of financial performance for regulation purposes.


Private banking is a term for banking, investment and other financial services provided by banks to private individuals investing sizable assets. The term “private” refers to the customer service being rendered on a more personal basis than in mass-market retail banking, usually via dedicated bank advisers. It should not be confused with a private bank, which is simply a non-incorporated banking institution.

Historically private banking has been viewed as very exclusive, only catering for high net worth individuals with liquidity over $2 million, although it is now possible to open some private bank accounts with as little as $250,000 for private investors. An institution’s private banking division will provide various services such as wealth management, savings, inheritance and tax planning for their clients. A high-level form of private banking (for the especially affluent) is often referred to as wealth management. For private banking services clients pay either based on the number of transactions, the annual portfolio performance or a “flat-fee”, usually calculated as a yearly percentage of the total investment amount

Private Banks are the highest growth sector due to the dismal performances of government banks (above). They tend to offer better service and products.

 Prime Bank Limited


Prime Bank Ltd. was established on 17th April 1995 with an authorized capital of Tk.1000 million and paid up capital of Tk.100 million (raised to Tk.200 million in 1997) by a group of highly successful entrepreneurs from various fields of economic activities such as shipping, oil, finance, garments, textiles and insurance etc. It is a full licensed scheduled Commercial bank set up in the private sector in pursuance of the policy of the Government to liberalize banking and financial services. The Founder Chairman of the bank, Dr. R.A Ghani is a doctorate in science. He was a member of the board of directors of Bangladesh Bank (Central Bank) and a former minister of the state Government of Bangladesh. The former governor of Bangladesh Bank Mr. Lutfar Rahman Sarkar was the first managing director of the bank. Highly professional people having wide experience in domestic and international banking are managing the bank. The present managing director Mr. E.Ehsanul Haque has long experience in domestic and international banking. The bank has made significant progress within a very short time due to its very competent board of directors, dynamic management and introduction of various customers’ friendly deposit and loan products. During the year under review, the network of branches increased to 71. The bank is providing commercial and investment banking services to all types of customers ranging from small enterprises to big business loans. Besides, investment in trade and commerce, the bank actively participates in socio-economic development of the priority sectors like industry, housing and self-employment.

The Bank made satisfactory progress over the years after its starting. Despite difficult circumstances it became able to sustain with some achievements. The bank further expected and consolidated its customer base in both of its core business and retail banking.

Since the very inception PBL is working with the philosophy of serving the nationals as an ideal and unique financial house. Every organization has some objectives of its own. The prime objective of PBL is to earn profit throw undertaking the responsibility of providing financial help for the development of the country’s commercial and industrial sector.


To build Prime Bank Limited into an efficient, market driven, customer focused institution with good corporate governance structure. Continuous improvement in their business policies, procedure and efficiency through integration of technology at all levels.

PBL’s main business mission is to obtain a sustainable position in the banking sector of Bangladesh as well as internationally.


To be the best Private Commercial Bank in Bangladesh in terms of efficiency, capital adequacy, asset quality, sound management and profitability having strong liquidity.


A bank with a difference…….


To have sustained growth, broaden and improve range of products and services in all areas of banking activities with the aim to add increased value to shareholders investment and offer highest possible benefits to our customers.

For Customers: To become most caring Bank – by providing the most courteous and efficient service in every area of our business.


  • For Employees: By promoting well – being of the members of the staff.
  • For Shareholders: By ensuring fair return on their investment through generating stable profit.
  • For Community: By assuming our role as socially responsible corporate entity in a tangible manner through close adherence to national policies and objectives.



  1. Mobilization of idle resources of the country by accepting Deposits from the general public.
  2. Granting of Loans and Advances to the individual firms and companies for activating and developing trade, commerce and industries and other productive activities in the country.
  3. To give facilities to the client and shareholders in a systematic way.
  4. To give opportunity of the people to do job in PBL.
  5. To give encourage to the people for savings.
  6. To increase investment.
  7. To make easy to transfer foreign currency.
  8. To identify consumers demand and fulfill their demand by supplying money.
  9. To improve economy by borrowing financial facility.
  10. To assist capital market.
  11. To assist social activities is another function of PBL.


This is a private sector commercial Bank providing comprehensive range of banking services. The bank is owned as follows:

                        Promoters                                85%

                        Public                                     15%


The Bank always acknowledges the valuable contribution made by its employees for the continuous superb achievements every year. The improvement in cost income ratio and better per employee performance indicate the efficiency, productivity of the employee. The Bank created a sense of community among our employees by encouraging communication with each other in the Management Committee Meeting and across the department and division. This discussion helped the employee to learn each other’s jobs and roles and develop an understanding about the Bank as a whole. Prime Bank always appreciates the employees at all level for their dedicated service, which enabled the Bank to proceed towards the sustainable growth.

The environment is continuously changing and employees are required to meet the new challenges. The central function of personnel management for achieving lasting success is to ensure that our employee systematically and consistently gain experience and qualification. The training will make them into revenue driven force.


There are two types of marketing division. These are:

  • Asset Marketing: It refers to various kinds of loan and advances. This division maintains communication with corporate clients, gives incentive to take loan from PBL and approaches them to borrow from PBL in profitable projects
  • Liability Marketing: This refers to marketing for collecting funds through buying of depository products from large depositors. The division communicates to the persons or organization having excess fund of deposit, informs them about the attractive features of the depository products and convince them to invest in PBL in various deposit scheme.


Prime Bank Training Institute had all along supported the Bank through various in house training courses, workshop, and seminars. The institute had played a significant role in strengthen the capabilities of their human resources. It constantly works on improvement of training methods and materials. Most of the programs had been designed in a form which is matched with specific objectives and goals.


The branches of the bank play the most important role for growth of business. The performance are appreciated and recognized by annual Branch Performance Award.


There is increasing recognition by the corporate that CSR can be a key differential elements and means for achieving greater business value in this competitive world. Customers and public are very much aware of the CSR demanding greater social accountability in these days. Prime bank has always laid emphasis on its commitment to the society and reinvest part of its profit for community welfare.

Focused areas are-

       1. Preservation of Memory of Martyr

2.   Health care

3. Talent Development

4. Education

5. Capacity Development in Banking & Financial Sector

6. Games & Sports

7. Charity

8. Environment



Local Currency Deposit Accounts

a) Conventional Banking

  • Current Deposit
  • Savings Deposit
  • Short Term Deposit
  • Non Resident Taka Account
  • NR Investors Taka Account
  • Security Deposit Receipt
  • Deposit Under Scheme:

      Contributory Savings Scheme

      Lakhopoty Saving Scheme

      Monthly Benefit Deposit Scheme

      Double Benefit Deposit Scheme

      Education Savings Scheme

      Prime Millionaire Deposit Scheme

      HBL Deposit Scheme

b) Islamic Banking

  • Al-Wadiah Account
  • Mudaraba Savings Account
    • Mudaraba Short Term Deposit
    • Convertible Taka Account
    • Mudaraba Term Deposit
    • Mudaraba Special Saving Scheme Deposit

      Contributory Savings Scheme

      Lakhopoty Saving Scheme

      Monthly Benefit Deposit Scheme

      Double Benefit Deposit Scheme

      Education Savings Scheme

      Hajj Deposit

      Mudaraba Prime Millionaire Deposit Scheme

      Mudaraba HBL Deposit Scheme

Foreign Currency Deposit Accounts

  • Foreign Currency Account
  • FCY Account under ERQ
  • Resident FCY Deposit
  • Non Resident Foreign Currency Deposit


Primary Dealer Unit

  • Treasury Bills
  • Treasury Bonds
  • REPO’s
  • Reverse REPO’s

Forex & Fund Management

  • Import /Export Financing
  • Custodian Services
  • Money Market Lending & Borrowing

Special Services

Cash Services

  • ATM Services
  • Cheque encashment
  • Foreign Currency

Fund Transfer

  • Inter-Branch Money Transfer
  • Telegraphic Transfer
  • Issuing and Encashing Foreign Drafts

Travel Services

  • Traveler’s Chaques

Value Added Service

  • Locker Services
  • Insured Deposit
  • Senior Citizen Scheme

Credit Cards

  • Visa Credit Card-Local
  • Visa Credit Card-International
  • Master Card-Local
  • Master Card-International


a) Conventional Banking

  • Packing Credit
  • Loan Against Imported Merchandize (LIM)
  • Letter of Trust Receipt (LTR)
  • Payment Against Documents (PAD)
  • EDF Loans
  • Secured Overdraft (SOD)
  • Inland Documentary Bills Purchased (IDBP)
  • Cash Credit
  • Loan General
  • Lease Finance
  • Hire Purchase
  • Housing Loan-Commercial
  • Retail Loans

      Auto Loans

      Home Loan (Swapna Neer)

      Consumer Durable Loan

      Doctors Loans

      Marriage Loan

      Travel Loan

      Education Loan

      Hospitalization Loan

      CNG Conversion Loan

      Advance Against Salary

      Any Purpose Loan

b) Islamic Banking

  • Bui-Mudaraba
  • Bai-Salam
  • Quard
  • Bills (Islamic)
  • Bai-Muajjal
    • Izarah
    • HP under Sirkatul Milk
    • Musharaka
    • Term Investment-Retail

       Seefa Investment Scheme

       Ashbab investment

       Burrak Investment

       Manjeel Home Investment

       Musafir Investment

       Education Investment

       Hospitalized Investment

       CNG Conversion Investment

       Mehnah Investment Against Salary

Other Services

Letters of Credit

  • Letter of Credit-Sight
  • Letter of Credit-Deferred
  • Back to Back L/C

Letters of Guarantee

  • Advance Payment Guarantee
  • Bid Bond
  • Performance Bond
  • Payment Bond
  • Custom Guarantee
  • Retention Money Guarantee
  • Shipping Guarantee
  • Guarantee- Others



      Prime Bank Ltd. (PBL) is one of the leading banks of Bangladesh and provides quality of service to every level of customer.

      All the branches of PBL are located in the suitable locations which is helping both the customers and the bank managements. They have their branches in most of the commercial areas like Gulshan, Banani, Motijheel, Bongshal, Agrabad and other important areas.

      PBL has a dynamic value in the banking sector of Bangladesh. They have achieved this value by the number of deposits they have.

      PBL has a large and strong coverage and network all over the country.

      PBL shares strong brand equity in the country.

      Compare to our other local organizations, the corporate culture of PBL is very strong. Management and directors share a very good relationship.

      All the employees and management personnel of PBL are highly efficient in performing their responsibilities. All of them are highly trained which is the key factor of their performance.

      All the employees of PBL share a great working environment which is a motivating factor for the success of PBL.


      Though PBL is one of the leading banks of Bangladesh, they have lacking in the technology sector. While everyone is moving towards online and ATM banking, they are falling behind to provide that service to everyone efficiently.

      They do not have sufficient internal security system.

      They do not have that much efficient agent to recover the loans.

      They are not doing appropriate promotions for their brand rather they are doing too much outside recruiting.


      People are depending on banks more than previous. It is a great opportunity for PBL because it will increase their customers.

      Creating of industry is becoming more liberal.

      Macro industries are increasing in Bangladesh and people are taking loans more than before which is good for banking.

      Business is becoming more and more globalized which is creating great opportunity for the banking sector.

      Investment in infrastructure development is also increasing.

      Foreign investment is also increasing in Bangladesh which will increase the foreign transaction.

       Computer technology is developing rapidly which will make banking easier.


      Merger & acquisition of bank by the Government is the major threat of banking sector.

      Now a day, in the banking sector, there is too much competition.

       Almost all the banks are providing similar type of retail banking products.

      Certain Bangladesh bank’s rules & regulation are creating barriers.

      Political instability of Bangladesh is affecting the banking sector.

       Too much criminal occurrences are also affecting the banking sector.

Dhaka Bank Limited

Bangladesh economy has been experiencing a rapid growth since the ’90s. Industrial and agricultural development, international trade, inflow of expatriate Bangladeshi workers’ remittance, local and foreign investments in construction, communication, power, food processing and service enterprises ushered in an era of economic activities. Urbanization and lifestyle changes concurrent with the economic development created a demand for banking products and services to support the new initiatives as well as to canalize consumer investments in a profitable manner. A group of highly acclaimed businessmen of the country grouped together to responded to this need and established Dhaka Bank Limited in the year 1995.

The Bank was incorporated as a public limited company under the Companies Act. 1994. The Bank started its commercial operation on July 05, 1995 with an authorized capital of Tk. 1,000 million and paid up capital of Tk. 100 million. The paid up capital of the Bank stood at Tk 2,659,597,763 as on March 31, 2010. The total equity (capital and reserves) of the Bank as on March 31, 2010 stood at Tk 6,036,368,754.

The Bank has 52 Branches, 6 SME Service Centers, 6 CMS Units, 1 Offshore Banking Unit across the country and a wide network of correspondents all over the world. The Bank has plans to open more Branches in the current fiscal year to expand the network.

The Bank offers the full range of banking and investment services for personal and corporate customers, backed by the state–of–the-art technology and a team of highly motivated Professionals.

As an integral part of our commitment to Excellence in Banking, Dhaka Bank now offers the full range of real-time online banking services through its all Branches, ATMs and Internet Banking Channels.

Dhaka Bank Ltd. is the preferred choice in banking for friendly and personalized services, cutting edge technology, tailored solutions for business needs, global reach in trade and commerce and high yield on investments.

To be the premier financial institution in the country providing high quality products and services backed by latest technology and a team of highly motivated personnel to deliver Excellence in Banking.

At Dhaka Bank, we draw our inspiration from the distant stars. Our team is committed to assure a standard that makes every banking transaction a pleasurable experience. Our endeavor is to offer you razor sharp sparkle through accuracy, reliability, timely delivery, cutting edge technology, and tailored solution for business needs, global reach in trade and commerce and high yield on your investments.
Our people, products and processes are aligned to meet the demand of our discerning customers. Our goal is to achieve a distinction like the luminaries in the sky. Our prime objective is to deliver a quality that demonstrates a true reflection of our vision – Excellence in Banking.


Human resource development is the most important part in any organizational sustainability, growth, development and expansion. The need for professional excellence at Dhaka Bank was duly recognized by its Board of Directors and Management and since December 1999, as it is evident by the decision to create Dhaka Bank Training Institute (DBTI) that came into reality in 2000.

Initially in June 2000, a makeshift arrangement was made at a temporary location at DBL Local Office and the training institute later was relocated to Uttara and shifted to the present premises of Sara Tower in Motijheel Commercial Area in January 2004

The DBTI is committed to develop the human resources, the main driving force of the Bank through structured modular training programs.  With a view to achieve professional excellence in Banking, DBTI conducts various courses, workshops, executive development programs mainly for officers and executives of the Bank. During August 2000 till December 2009, the DBTI trained as many as 7130 participants through 291 different training programs covering all diverse courses for banking, finance, managements, laws etc. DBTI has international exposure and   formulated, designed and delivered 12 training courses under the Capacity Building Technical Assistance Project of National Bank of Tajikistan(Central Bank) financed by Islamic Development Bank for “Assistance in formulating Courses based on Banking Services’ at Dushanbe, Tajikistan during November 2005 to April 2006.

Besides conventional banking related trainings; the DBTI also arranged, facilitated and conducted various Executive Development Programs, workshops, discussion meetings and exchanged views for the improvements in banking challenges in twenty-first century.   Alongside normal training programs DBTI arranges short programs and events and regularly visit braches and conduct different workshops.

Internal and external resource persons are invited to lead the class sessions at DBTI. It has full-furnished facilities with computers, IT and all modern electronic devices to accommodate 50 trainees at a time. DBTI has a library with more than 1,050 books covering all sides of banking needs. The DBTI library has professional linkages with many organizations at home and abroad.

As a complete Training Institute, DBTI not only train staffs of Dhaka Bank but also renders training services to other banks as well.

The DBTI maintains constant liaison with Universities/other organizations/Training Institutes for keeping itself updated with recent changes/development in relevant areas and also for necessary dissemination thereof among our people working at field level.

Dhaka Bank Training Institute has been working with its full dedication & efforts and continuous support from Board of Directors and Management to provide Excellence in Banking through development of attitude, knowledge and skill keeping in view the organizational goal and economic prosperity of the country in the background of present globalize world. In 2009, DBTI has conducted 45 courses involving 1173 participants.

Dhaka Bank also believes in bringing holistic approach in training and development area. In 2009 Human Resources Division sent handful of participants to attend various courses both at home and abroad. List of participants and the courses attended in DBTI Premise are appended below:

Executive Development Program/ Training Course /Workshop on 2009

Sl. No.

Title Of Courses

Number of Courses

Number of Participants


Dhaka Bank Savings Bundle Product




Workshop on SBS-2 & SBS-3




Balance of Payments & Reporting of Foreign Exchange Transactions to Bangladesh Bank




Automated Clearing House




Credit Risk Management




Anti-Money Laundering: Policies & Implementation




IT Operations & Policy Compliance: Branch Perspective




IT Training for Branch System Administrator




Workshop on UCP600




Workshop on BACH & MICR




Training on Credit Management




Training on Handling the Cash Counter




Training on Eldora do: The Nationwide Remittance and Payment System




Orientation & Basics of Banking




Workshop on Professional Skill Development & Anti-Money Laundering Issues




International Trade Finance & Foreign Exchange




Executive Development Program on Fund Management & Product Development




Presentation on Automated Clearing Module Under BACH




Training Workshop on General Ledger Reconciliation




Software Demonstration Training by Techno Haven




Foundation Training for Bankers Course




 Islamic Banking – conducted by Central Shariah Board for Islamic Banks of Bangladesh




BASEL II: Technical Issues, Challenges and Implementation Initiative




Workshop on Marketing of Bank Services, Skill Development & Anti-Money Laundering Initiatives




Grand Total




Dhaka Bank Limited is also believed in bringing holistic approach in training and development. Human Resources Division also sent participants in different organizations at home and abroad .In2009 Dhaka Bank sends few participants at different courses as follows. The names of the training courses taken abroad are appended below:

Name of The Training Courses


Credit Risk Management & Debt Recovery Strategies with Special Reference to the Practices & Experiences in most South-Asian CountriesCentral Bank of India (CBI) Officer’s Training College, Kolkata, India
Credit Risk Management & Debt Recovery Strategies with Special Reference to the Practices & Experiences in most South-Asian CountriesCentral Bank of India (CBI) Officer’s Training College, Kolkata, India
Product, Services, Activities in the Region and Banking UpdatesU. B. A. F. Penang, Malaysia
International Banking – Building up your Trade Finance Capability at Hong Kong SARWachovia Bank N.A. Hong Kong SAR
Asian Bankers WorkshopStandard Chartered Bank, Seoul, Korea
Executive SeminarHabib American Bank, New York, USA

 General Information

Name of the Institute:Dhaka Bank Training Institute
Principle:Shamshad Begum
Year of establishment:2000
Year of establishment of Dhaka Bank Limited:1995
Mailing Address:Dhaka Bank Training Institute (DBTI)
Sara Tower (3 rd Floor)
11/A Toyenbee Circular Road,
Motijheel C. A.,
Dhaka 1000
Telephone numbers:956 7814 (Direct)
716 0913-5, 956 7815/401-4 (PABX)
01199 811 648, 01711 659 798 (Cells)
831 7202 (Home)
Fax Number:956 5060
Email address:[email protected]

  Mercantile Bank Limited


Mercantile Bank Limited emerged as a new commercial bank to provide efficient banking services and to contribute socio-economic development of the country. The Bank commenced its operation on June 2, 1999.

The Bank provides a broad range of financial services to its customers and corporate clients. The Board of Directors consists of eminent personalities from the realm of commerce and industries of the country


Would make finest corporate citizen.


Will become most caring, focused for equitable growth based on diversified deployment of resources, and nevertheless would remain healthy and gainfully profitable Bank.


Strategic objectives

  • To achieve positive Economic Value Added (EVA) each year.
  • To be market leader in product innovation.
  • To be one of the top three Financial Institutions in Bangladesh in terms of cost efficiency.
  • To be one of the top five Financial Institutions in Bangladesh in terms of market share in all significant market segments we serve.

Financial objectives

  • To achieve 20% return on shareholders’ equity or more, on average.


# For the customers providing with caring services by being innovative in the development of new banking products and services.
# For the shareholders maximizing wealth of the Bank.
# For the employees   respecting worth and dignity of individual employees devoting their energies for the progress of the Bank.

# For the community strengthening the corporate values and taking environment and social risks and reward into account.

New technology adopting the state-of-the art technology in banking operations.


The Bank has launched a number of financial products and services since its inception. Among these, Monthly Savings Scheme, Family Maintenance Scheme, Double Benefit Deposit Scheme, Quarterly Benefit Deposit Scheme, 1.5 Times Benefit Deposit Scheme, Advance Benefit Deposit Scheme, Consumer Credit Scheme, Small Loan Scheme, Lease Finance Scheme, Overseas Employment Loan Scheme, Car Loan Scheme, Home Loan Scheme and SME Loan have received wide acceptance among the people.


Monthly Saving Scheme
It is our significant product; introduced to attract small savers for building up their habit of savings and thereby build up a healthy capital base for the economy. The monthly installments are in various sizes and one can adopt the schemes for a period of 05 years, 08 years or 10 years. Investor gets a lump sum (principal plus interest) at the maturity of the scheme. Installment amount should be deposited within the first 10 days of each month. In case of failure, 5% of monthly installment will be charged as late payment fee which will be added with the installment amount. In case of premature encashment, interest will be paid at Savings rate. The incumbent depositor can get a loan facility of maximum 80% of his deposited amount. At the end of 2009, BDT 13.58 billion was deposited against that of BDT 9.79 billion in 2008 recording 38.71% growth in this scheme.

 Monthly Benefit Deposit Scheme
Under this scheme, depositor will get a certain sum of money in each month proportion to his/her deposit during the entire tenure. Benefit starts right from the first month of opening an account under this scheme and continues upto five years. On maturity, the principal amount is paid back. Objectives of this scheme are: help the retired persons for investing their retirement benefits, create investment opportunities for Non-Resident Bangladeshi, etc. Minimum deposited amount is BDT 50,000 or its multiples and the tenure is Five (05) years. This scheme is also known as “Family Maintenance Deposit Scheme (FMD)”. Under this scheme total amount of BDT 1.86 billion was deposited upto the end of 2009.

 Double Benefit Deposit Scheme
Under this scheme, deposited amount will be double in a tenure of Seven and Half (7.5) years. Minimum deposited amount should be BDT 10,000 or its multiples. In case of premature encashment interest will be paid on Saving A/c Rate. Loan may be granted up to maximum 80% of the deposited amount, but minimum principle amount must be BDT 20,000. At the end of 2009 total amount of BDT 6.93 billion was deposited under this scheme.

 Quarterly Benefit Deposit Scheme
The ‘Quarterly Benefit Deposit Scheme’ will be maintained for a period of 3 (three) years and the minimum amount of deposit is BDT 50,000.00 (fifty thousand) or its multiples. Interest will be paid on quarterly basis. Benefit starts right from the first quarter of opening the account. On maturity, principal amount will be paid back. Savings account is needed to maintain this scheme. Loan may be granted up to maximum 80% of the forced encashment value on the date of loan processing. During the period of continuation of loan, quarterly benefits will be credited only to the loan account. Deposit under this scheme increased to BDT 229.40 million in 2009 from BDT 145.35 million in 2008.

 Times Benefit Deposit Scheme
Under the ‘1.5 Times Benefit Deposit Scheme’ a deposit of minimum BDT 50,000.00 (fifty thousand) or its multiples will be received for a period of 4.25 years. On maturity, 1.5 times of the deposited amount will be paid back to the account holder. In case of premature encashment interest will be paid on Saving A/c Rate. However, no interest shall be paid if premature encashment takes place before expiry of 1 (one) year. Loan may be granted up to maximum 80% of the deposited amount. Total amount of Deposit under this scheme increased significantly to BDT 233.67 million from just 139.37 million at the end of 2008.

 Advance Benefit Deposit Scheme
Under this Scheme, one can deposit a certain amount of money for two years. The depositor will receive the benefit on yearly basis. The benefit amount of first year will be received in advance at the time of deposit. On maturity, the depositor will get back the principal amount with the benefit amount of second year. That is Interest is paid in two phases, first phase paid initially BDT 9,500 and second phase paid BDT109,520 after maturity against BDT 1,00,000. Loan may be granted up to maximum 70% of the deposit. This is Also known as “Agrim Munafa Amanat Prokolpo (AMAP)”. BDT 76.92 million was deposited under this scheme at the end of 2009.


Consumer Credit Scheme
Consumer Credit Scheme is one of the popular areas of collateral-free finance of the Bank. People with limited income can avail of credit facility to buy household goods including computer and other consumer durables. Total exposure under this scheme was BDT 49.83 million at the end of 2009.

Small Loan Scheme
This scheme has been designed especially for the businessmen longing for credit facility for their business and can’t provide tangible securities. Total amount of BDT 15.40 million was deployed under this scheme at the end of 2009.

 Lease Finance
This scheme has been designed to assist and encourage the genuine and capable entrepreneurs and professionals for acquiring capital machinery, medical equipments, computers, vehicle and other items. Flexibility and term and conditions of this scheme have attracted the potential entrepreneurs to acquire equipments of production and services and repay gradually from earnings on the basis of “Pay as you earn.” Total exposure under this scheme was BDT 356.50 million at the end of 2009.

 Doctors’ Credit Scheme
Doctors’ Credit Scheme is designed to facilitate financing to fresh medical graduates and established physicians to acquire medical equipments and set up clinics and hospitals and thereby make the medical facilities upgraded and available to the mass people. BDT 7.06 million was disbursed under this scheme till the end of 2009.

 SME Loan Scheme
Small and Medium Enterprise (SME) Loan Scheme has been introduced to provide financial assistance to new or experienced entrepreneurs to invest in small and medium scale industries with a comparatively low rate of interest as the same is assisted by the Bangladesh Bank with refinancing facilities. Exposure under this scheme experienced significant growth of  44.39% and amounting to BDT 983.39 million at 2009 end from that of BDT 681.08 million at the end of 2008.

 Personal Loan Scheme
Personal Loan Scheme has been introduced to extend credit facilities to cater the needs of low and middle-income group for any purpose. Government and semi-government officials, employees of autonomous bodies, banks and other financial organizations, multinational companies, reputed private organizations and teachers of recognized public and private schools, colleges and universities are eligible for this loan. Total Loans and Advances under this scheme increased to BDT 364.38 million upto 2009 from that of 279.78 million at the end of 2008.

Car Loan Scheme
Car Loan Scheme has been introduced to enable middle-income people to purchase Cars/SUVs/Jeeps. Government and semi-government officials, employees of autonomous bodies, banks and other financial organizations, multinational companies, reputed private organizations, teachers of recognized public and private universities and businessmen are eligible for this loan. Total amount of BDT 201.98 million was disbursed under this scheme upto December 2009.

Home Loan Scheme
To meet the growing need of housing for middle and lower-middle income people, MBL has introduced Home Loan Scheme. We also support the Bangladesh Bank’s Home Loan Refinance Scheme. The Scheme will also boost up the growth of housing sector. Such loan shall be available for purchase or construction of new apartments for self-residing purpose.

Overseas Employment Loan Scheme
Overseas Employment Loan Scheme is designed to facilitate the Bangladeshi youths seeking employment abroad but unable to meet the expenses to reach the workplace from their own sources. The ultimate objective of the scheme is to promote skilled -skilled manpower to different countries across the world as well as to provide support to Government Policy considering priority of this sector. By availing loan under this scheme, the active youths of middle and lower middle class can get overseas employment by avoiding borrowing from the illustrious class or village ‘mohajon’ at a very high cost or selling their paternal properties. The scheme will also help fetching foreign currency for the country as well as fulfill the Bank’s commitment to encourage Micro-lending for poverty alleviation, improve the quality of life and thereby contribute to socio economic development of the country.

Al-Arafah Islami Bank Ltd. as the name implies a newly formed commercial bank in Bangladesh. It has been incorporated in Dhaka, Bangladesh as a public limited company and its Head Office of the Bank is located at Rahman Mansion, 161, Motijheel C/A, Dhaka- 1000.

In the world of consumerism the business organization of the world strive for the consumers satisfaction as a number one business strategy whatever may be the product of the organization, either service or non service. Service is the product of bank. There is a saying that customer service starts rights right from the stairs of the bank building. The guard at the door is first person pep resents of the bank, receives a customer with wishes in smiling face.


Al-Arafah Islami Bank Ltd. (AIBL) was incorporated on 18 June,1995 with authorized capital of Tk.1000 million (100 Crore) and paid up capital of Tk.10.12 Crore paid up by the Sponsors/Directors and Tk.10.12 Crore was offered to the public for subscribed portion of public issue of shares. The Bank was formally inaugurated on 27th September, 2005 with Motijheel Branch (Principal Branch).The Management of  the Bank is vested in a Board of Directors consisting of 24 members including the Managing Director of the Bank. Among 24 Directors 2 (two) Directors came from the public shareholders. Managing Director is the chief executive of the Bank. There is a Shariah council of 7 (seven) members in Al-Arafah Islami Bank Ltd. to monitor the investments whether it invests in Shariah allowed sectors or not .Since its establishment, AIBL opened 5 branches in 1995, 5 in 1996,10 in 1997, 10 in 1998, 5 in 1999, 2 in 2000, 3 in 2001, 1 in 2005, & 5 in 2006 i.e. at the end of 2006 the Bank Branch reaches to 46.Total number of employees of the Bank was 771 in 1995 and reached to 912 in 2006 and during the short period of its activities the Bank has made remarkable progress in various activities. Since commencement of its activities on 18 June ,1995 the Bank has mobilized the deposit of Tk.6415.79 million and 16775.33 million at the end of the year 1999 and 2006. Foreign exchange business handled by the Bank during the year 1999 to 2006 were Tk.7859.72 million and 11314.18 million respectively and investment was Tk.3793.71 million and 17423.18 million at the end of the year 1999 and 2006 respectively. The bank earned a profit of Tk.31.70 million in the year 1999 compared to Tk.470.02 million (profit after tax and provision) in the year 2006.

Al-Arafah Islami Bank Ltd. was established not only to earn profit and to develop economy of the country but also it had an ultimate goal to get reward in the Heaven by banning interest in business. Since its commencement the Bank has been trying to achieve this goal. The Islam loving people specially who are not interested with interest, should help this Bank giving deposit and taking investment from this Bank.


By establishing an interest free atmosphere in day to day business transactions, the Promoters, Sponsors & Directors expect the Shafayat from our beloved Prophet Hadrat Muhammad (S) and the ultimate emancipation in the Afterwards.


To establish an interest free transaction in the economy


i) All activities of the bank are conducted according to Islamic Sharia where profit is the legal alternative to interest.

ii) The Bank’s investment policy follows different modes approved by Islamic Shariah based on Quran & Sunnah.

iii) The Bank is committed towards establishing a welfare oriented banking system, economic enlistment of the low-income group of people, create employment opportunities.

iv) According to the needs and demands of the society and the country as a whole the Bank invests money to different Halal business. The bank participates in different activities aiming at creating jobs, implementing development projects taken by the Government and developing infrastructure.

v) The Bank is committed to establish an economic system through social justice and equal distribution of wealth.

vii) The Bank is contributing to economic and philanthropic activities side by side. Al Arafah English Medium Madrasha and AIBL Library are among mention worthy. (Source-Annual Report-2005, P-24)

Objectives of AIBL:

To establish an interest free economy.

To establish an modern banking system for all kinds of people

To take part in the economic growth of the country.

To eradicate the poverty and to do social services by establishing Schools, Madrashas, University, Hospitals, Public Library etc.

Finally to achieve ultimate goal i.e. Nazat in Akhirat.


In terms of Article 149 of the Articles of Association of the Bank M/S Pinaki and Co. Chartered Accountants were re-appointed as external auditors for conducting the audit of accounts as 31st December, 2000. The Auditor M/S Pinaki & Co. Chartered Accountants being eligible offered themselves for re-appointment for the year 2001. But now M/s Rahman Rahman Hoq becomes the auditor in the year 2005

Training and Motivation:

Training and Motivation are utmost important to bring about positive change in the outlook of the manpower and to increase efficiency. Set of trained and efficient workforce is indispensable for any commercial bank and they are the fundamental strength of the bank.


Al-Arafah English Medium Madrasah has been established by the Al-Arafah Bank Foundation with a view to building next generation according to the ideals of peace and equality of Islam and to establishing banking and other aspects of life in the way


AIBL started its working at 161, Motijheel C/A with a Branch named Motijheel Branch on 27th September,1995 was the first & main Branch of AIBL and has been operating throughout the country. The Head Office of the Bank was situated at the same holding of Motijheel Branch since its establishment but from 11 January, 2007 it has started its working at its own premises 36, Dilkusha (6th, 7th, 8th & 9th floor), Dhaka-1000. The age of the Bank is only 11 years and during this short period of time, the Bank has established total 46 Branches over the country and made a smooth network inside the country. The number of Branches as Division wise is mentioned in the following table:


No. of Br.

Dhaka Division


Chittagong Division


Rajshahi Division


Khulna Division


Sylhet Division


Barisal Division





Board of Directors

Executive Committee

Audit Committee

Management Committee

Shariah council


“Al- Arafa Islami Bank shall bear the mark of the Sunnah of our prophet Muhammad (S), of our faith and conviction, our values and attitudes towards life and that the entire environment of Al- Arafa Islami Bank shall be in conformity with Sunnah, simple in style, noble and rich in thought, but dynamic and far reaching in impact, exemplary in efficiency and service to the customers.”

Al-Arafah Islami Bank ltd. is a non government commercial Bank in Bangladesh, which started its business from 1995.I t is a unique combination of Shariah & Islamic banking. Among non government commercial banks, Al-Arafah Islami Bank Ltd. is a milestone for economic development. It has been playing an important role to eradicate the unemployment problem in Bangladesh. Over 800 employees and 5500 shareholders are getting benefit from this organization. But most of the people in our country have misconception about Islamic banking specially Al-Arafah Islami Bank Ltd. & other Islamic banks. They can not find any difference in its operation between conventional commercial Banks and Islamic Banks because they have no clear idea about the activities as well as investment mechanism of Islamic banks.

Jamuna Bank Limited (JBL) is a Banking Company registered under the Companies Act, 1994 with its Head Office at Chini Shilpa Bhaban, 3, Dilkusha C/A, Dhaka-1000. The Bank started its operation from 3rd June 2001.

The Bank undertakes all types of Banking transactions to support the development of trade and commerce of the country. JBL’s services are also available for the entrepreneurs to set up new ventures and BMRE of industrial units. Jamuna Bank Ltd., the only Bengali named new generation private commercial  bank was established by a group of winning local entrepreneurs conceiving an idea of creating a model banking institution with different outlook to offer the valued customers,  a comprehensive range of financial services and innovative products for sustainable mutual growth and prosperity. The sponsors are reputed personalities in the filed of trade, commerce and industries.

The Bank is being managed and operated by a group of highly educated and professional team with diversified experience in finance and banking.  The Management of the bank constantly focuses on understanding and anticipating customers needs. The scenario of banking business is changing day by day, so the bank’s responsibility is to device strategy and new products to cope with the changing environment. Jamuna Bank Ltd. has already achieved tremendous progress within only eight years. The bank has already ranked as one of top quality service providers & is known for its reputation.

At present the Bank has real-time centralized Online banking branches (Urban & Rural) throughout the Country having smart IT-Backbone. Besides these traditional delivery point, the bank has ATM of its own, sharing with other partner banks & Consortium throughout the Country.

The operation hour of the Bank is 10:00 A.M. To 6:00 P.M. from Sunday to Thursday with transaction hour from 10:00 A.M. to 4:00 P.M. The Bank remains closed on Friday including government holidays.


To become a leading banking institution and to play a pivotal role in the development of the country.


The Bank is committed to satisfying diverse needs of its customers through an array of products at a competitive price by using appropriate technology and providing timely service so that a sustainable growth, reasonable return and contribution to the development of the country can be ensured with a motivated and professional work-force.


  • To manage and operate the Bank in the most efficient manner to enhance financial performance and to control cost of fund
  • To strive for customer satisfaction through quality control and delivery of timely services
  • To identify customers’ credit and other banking needs and monitor their perception towards our performance in meeting those requirements.
  • To review and update policies, procedures and practices to enhance the ability to extend better service to customers.
  • To train and develop all employees and provide them adequate resources so that customers’ needs can be reasonably addressed.
  • To promote organizational effectiveness by openly communicating company plans, policies, practices and procedures to employees in a timely fashion.
  • To cultivate a working environment that fosters positive motivation for improved performance
  • To diversify portfolio both in the retail and wholesale market
  • To increase direct contact with customers in order to cultivate a closer relationship between the bank and its customers.


  • To earn and maintain CAMEL Rating ‘Strong’
  • To establish relationship banking and improve service quality through development of Strategic Marketing Plans.
  • To remain one of the best banks in Bangladesh in terms of profitability and assets quality.
  • To introduce fully automated systems through integration of information technology.
  • To ensure an adequate rate of return on investment.
  • To keep risk position at an acceptable range (including any off balance sheet risk).
  • To maintain adequate liquidity to meet maturing obligations and commitments.
  • To maintain a healthy growth of business with desired image.
  • To maintain adequate control systems and transparency in procedures.
  • To develop and retain a quality work-force through an effective human Resources Management System.
  • To ensure optimum utilization of all available resources.
  • To pursue an effective system of management by ensuring compliance to ethical norms, transparency and accountability at all levels.

IFIC Bank Ltd

Some are parts:

General Banking and HRM Practices with Special Reference to IFIC Bank Ltd (Part 1)

General Banking and HRM Practices with Special Reference to IFIC Bank Ltd (Part 2)