INTRODUCTION
I joined as an intern in the Technology Department of BRAC Bank on 4th June 2008. The Technology Department is situated in the Annex building, which is nearby Gulshan-1 just Next to the Gulshan Shooting Club. The Technology Department consist of ten departments, namely – Dc Operation, User Infrastructure Services, Technology Security, Swift, Banking Application, Network Services, Alternative Delivery Channel, Omnibus, and Business Solution, even after passing on the devices to the user, members of the department are called for troubleshooting purposes on a daily basis where a PC has failed to operate for an unknown reason.
Everyday plenty of computer-associated materials are bought from different vendors and immediate documentation of the bills are made with the hardware team’s approval; later on they are handed in to the Financial Administration Department for processing. I indulged myself in some documentation work too, to get an idea on how a billing process works.
1.1.Origin of the Report
The Masters of Business Administration (MBA) was introducing by the Southeast University with an objective to supply an adequate number of highly trained to the economy. As the MBA program is integrated, theoretical and practical method of teaching students of this program are required to have practical exposure in own different major disciplines in the proceeding years of their courses.
After completing MBA program of Southeast University is required to undertaken an internship program for three months at any organization to get exposure to the real life business practice. To serve this purpose, each student is attached with an organization. My internship was at BRAC BANK LIMITED (HEAD OFFICE, GULSHAN).
I was authorized to prepare a report on central function of BRAC Bank Ltd. for partial fulfillment of my course requirement. I went to BRAC Bank Limited, Head Office, where I worked as an intern from June 4, 2008 to September 3, 2008. This report has been prepared based on my practical experience on the day-to-day banking activities and under close supervision of my internal guide and also as well as my course teacher. During my internship I had to prepare a report under the supervision of Assistant Professor Mr. Noor Hossain Md. Ariful Azim, Southeast University and Md. Mahbub A Alahi, Principal Officer and Manager, Technology Department BRAC Bank Ltd. supervised me inside the organization.
1.2 OBJECTIVE OF THE STUDY
The basic objectives of this study are as follows:
To fulfill the partial requirement of MBA program.
To have an exposure on the banking environment of Bangladesh.
To gain different functions of banks.
To have some practical experience that will be helpful for my MBA program.
To facilitate the student apply their theoretical knowledge in practical level of operation of a bank as find out the differences between theory and practice.
To present an overview of BRAC Bank Ltd.
To find out the internal and external lacking in the daily operation that would help BRAC Bank Limited for more progress.
1.3. THE SCOPE OF THE STUDY
The report covers the activities of different department of the Head Office of BRAC Bank Limited. It has identified the major activities of banking as well as department wise functions. It only focuses the overall mechanism of banking, in depth analysis of every department & sub sections are not covered here.
CHAPTER I I
METHODOLOGY
2.1 METHODOLOGY OF THE STUDY
I went to Head Office BRAC Bank Limited, for my internee. The basic data both primary and secondary used in the preparation of this report are obtained from:
Personal observation of different tasks.
Face to face conversation with the bank officers studying of different files and books.
Annual report of BRAC Bank Ltd.
Periodicals published by Bangladesh Bank.
2.2. SOURCES OF DATA
Both the primary as well as the secondary form of data is used to prepare the report. The details of these sources are highlighted below.
2.2.1. PRIMARY SOURCES
Primary data for this report had been collected through the interview, conversation & discussion of different officers in different sections. On the job observation of the officers has helped a lot to know information of banking. The executives & officers of BRAC Bank were quite friendly & cooperative to provide lots of information to prepare this report.
2.2.2. SECONDARY SOURCES
Secondary information was collected from:
Annual report of BRAC Bank Ltd.
Books on general banking.
2.3 LIMITATION OF THE STUDY:
Like any other study the limitations of the study is not out of questions, but the following factors seem to me the main points of weakness of this study:
The major limitations of this report are as follows:
Large-scale research was not possible due to time constraints.
Non-availability of data in a systematic way.
Availability of the reference book is another limitation.
It is very busy office. In this place employees get very little time to teach theoretical knowledge to the trainee.
CHAPTER I I I
OVERVIEW ABOUT BRAC BANK LIMITED
BRAC Bank Limited, one of the latest generations of commercial banks, which started its journey on the 4th of July 2001 with a vision to be the absolute market leader. BRAC Bank is a commercial scheduled bank extending full range of banking facilities as per the directives of Bangladesh bank. It intends to set standards as the absolute market leader by providing efficient, friendly and modern fully automated on-line service on a profitable basis. BRAC Bank in surviving in the large banking arena through its unique and competitive products and it is the only local bank providing 100% integrated on-line banking.
BRAC Bank Limited, with institutional shareholdings by BRAC, International Finance Corporation (IFC) and Shorecap International, has been the fastest growing Bank in 2004 and 2005. At the year-end of 2005, BRAC Bank had recorded a 103 percent growth in assets, and a 65 percent growth in liabilities, with an operating profit of 84 percent over the previous year 2004.
A fully operational commercial bank, BRAC Bank focuses on pursuing unexplored market niches in the Small and Medium Enterprise Business, which hitherto has remained largely untapped within the country. In the last four years of operation, the Bank has disbursed over BDT 1200 corer in loans to nearly 32,000 small and medium entrepreneurs. The management of the Bank believes that this sector of the economy can contribute the most to the rapid generation of employment in Bangladesh.
The Bank is mainly owned by the largest NGO in Bangladesh- BRAC .The Bank has positioned itself as a new generation Bank with a focus to meet diverse financial need a growing and developing economy.
3.1. BRAND PROMISE:
“Astha Obichol”.
3.2. VISION:
“Building a profitable and socially responsible financial institution focused on Markets and Business with growth potential, thereby assisting BRAC and shareholders build a “just, enlightened, healthy, democratic and poverty free Bangladesh”.
3.3. MISSION:
Sustained growth in ‘Small & Medium Enterprise’ sector.
Continuous low cost deposit growth with controlled growth in Retained Assets.
Corporate Assets to be funded through self-liability mobilization. Growth in Assets through Syndications and Investment in faster growing sectors.
Continuous endeavor to increase fee based income.
Keep our Debt Charged at 2% to maintain a steady profitable growth.
Achieve efficient synergies between the bank’s Branches, SME Unit offices and BRAC field offices for delivery of Remittance and Bank’s other products and services.
Manage various lines of business in a fully controlled environment with no compromise on service quality.
Keep a diverse, far flung team fully motivated and driven towards materializing the bank’s vision into reality.
3.4. OBJECTIVES OF THE BANK:
• To provide wide range of financial services professionally, efficiently and competitively to achieve per-eminent position in chosen market.
• Diversity revenue stream through product innovation.
• A Well-diversified credit portfolio, which produces a reliable and consistent return to investment.
3.5. VALUES OF THE BANK:
Our Strength emanates from our owner BRAC. This means, we will hold the following values and will be guided by them as we do our jobs.
Value the fact that we are a member of the BRAC family.
Creating an honest, open and enabling environment.
Have a strong Customer focus and build relationships based on integrity, superior
service and mutual benefit.
Strive for profit & sound growth.
Work as a team to serve the best interest of our owners.
Relentless in pursuit of business innovation and improvement.
Value and respect people and make decisions based on merit.
Base recognition and reward on performance.
Responsible, trustworthy and law-abiding in all that we do.
3.6. TARGET MARKET:
• Pharmaceuticals, toiletries, chemicals and pesticides
• Power Generation, oil exploration, industrial and household gases (Liquid Petroleum
Gases etc.)
• Edible Oil.
• Bulk Trading essential Commodities, Industrial Raw Materials, Agricultural Inputs, and Cement.
• Garments, Textiles and related backward Linkages industries including sinning, knitting, gym, garments accessories etc.
• Food Processing and Beverage Industries
• Cable and Cable wire
• Information Technology
• Leasing companies/Non banking financial institutions
• Health Service Industry
• Non Governmental Organization (N.G.O) & other international Development
Organization
• Importers/Dealers of machinery, industrial, electrical equipment
• Educational Institutions
• Bone china, ceramics, melamine, plastic products
• Manufacturing and Trading of Consumer Durables.
• Telecommunication
• Contractor Finance
• Ship Breaking, Re-rolling, Corrugated Iron (CI) Sheet Mfg. and related business
• Air Lines, Shipping Lines, Freight Forwarders, Testing and Inspection agencies
• Footwear and Leather
• Tobacco Products
• Tea
• Importers, Whole seller, Retailer
• Individuals
3.7. TARGET CUSTOMER GROUP:
• Leading Domestic Organizations
• Corporate and Trading Houses
• Local medium and large corporate
• Multinational Companies (MNCs’).
• NGOs’
• Educational Institutions
• Individual
3.8. INFORMATION TECHNOLOGY IN BANKING OPERATION:
BRAC Bank Limited has adopted automation in banking operation from the first day of its business. The main objective of this automation is to provide efficient and prompt services to its valued clients. At present all the branches of the bank are computerized to provide best security to the information. BRAC Bank Limited is providing comprehensive range of banking services with utmost care and efficiency to its Consumer. Ascend Millennium Banking System is developed and customized by South Tech Ltd. Several numbers of system analyst and programmers are dedicated towards development and customization of the software and after sale service.
3.9. TECHNOLOGY:
BRAC Bank Limited Brings 36 branches under one umbrella, introducing SMS Banking, Internet Banking and interfacing ATM Network through the Online Banking software, which has been the major achievements. Consequently our Consumer is enjoying services from Anywhere Anytime. BRAC Bank is the first bank to online the rural branches.
3.10. CHALLENGES:
Ensure compliant BRAC Bank.
Achieve satisfactory Audit rating for CSD.
Ensure efficient CONSUMER services to our internal and external clients.
ATM support.
Smooth operation of CSD functions.
Develop and retain efficient human resources for CSD team.
3.11. INITIATIVES:
Strength CSD tools by developing CSD Operation, monitoring processes and efficient
people.
Develop and implement quarterly self-audit questionnaire.
Set Smooth and efficient Service delivery Process for our CONSUMER.
Develop efficient working force by providing hands on training, relevant HR training.
Conduct in-house training program on Bangladesh Bank & BRAC Bank Regulations.
3.12. CORPORATE SOCIAL RESPONSIBILITY:
Just as BRAC Bank have a corporate identity and also a social identity too. As a bank BRAC Bank are socially responsible. Fifty percent of It’s Loan portfolio is diverted to Small and Medium Enterprise banking, and as a financial intermediary it channel funds from the surplus ends to the needy. Country-wide network of SME Units cater to the needs of small entrepreneurs to help them build their asset base. BRAC Bank is a market leader in SME, striving for socio-economic upheaval in Bangladesh. A portion of its revenue is channeled to support BRAC schools, where children study for free. 70% of these children are female.
3.13. BRAC BANK LIMITED AT A GLANCE:
E-mail
enquiry@bracbank.com
Address
BRAC Bank Limited
1, Gulshan Avenue, Gulshan-1
Dhaka1212
Phone
+880-2-8824051-4
Fax
+880-2-8813543
Telex
632171BBLBOBJ SWIFT
BRAKBDDH
Tele Sales
Phone: 9861761, 9882933
Mobile: 0171-4024246, 0171-4024176
24 Hours Phone Banking: 01819-230000, 01819-260000
Help Line
» +88-02-8859200
» +88-02-8859201
3.14. CORORATE INFORMATION:
Date of Incorporation : May 20, 1999
Date of Commencement of Commercial Operation : July 04, 2001
No. of Branch : 36
No of Unit Office : 41
3.15. SHAREHOLDING STRUCTURE:
Shareholders Percent
BRAC 31.74%
IFC 9.50%
Shore Cap International 8.76%
General Public through IPO 40%
Non-Residents Bangladeshi’s 5%
Mutual funds through IPO 5%
Total 100%
3.16. BOARD OF DIRECTORS:
Mr. Muhammad A. (Rumee) Ali
Chairman
Mr. Quazi Md.Shariful Ala
Director
Mr. Mark A. Coffey (Nominated by Shore Cap International Limited)
Director
Ms. Tamara Hasan Abed
Director
Mr. Shib Narayan Kairy
Director
Ms. Nihad Kabir
Director (Independent)
Mr. A. E. A. Muhaimen
Managing Director and CEO
3.17. MANAGEMENT OF BRAC BANK LTD:
The Board of Directors is the top management and policy-making body of BRAC Bank limited. Presently the Board consists of a chairman and four directors. It is to be noted that the Managing Director, is also a member of the Board. The Directors are appointed from amongst those who have had experience and shown capacity in the field of finance and banking, trade, commerce, industry agriculture. The Chief Operations Officer executes all the activities under the direction of the Board. Banks own Recruitment Committee appoints the officers and the other line and staff personnel.
Management
3.18. MANAGEMENT TEAM:
Mr. A. E. A. Muhaimen
Managing Director & CEO
Mr. Mohd. Rafat Ullah Khan
Head of Credit
Mr. Rais Uddin Ahmad
Company Secretary &
Head of Regulatory & Internal Control
Mr. Naushad Hussain
Head of Probashi Banking
Ms. Tahniyat Ahmed Karim
Head of Human Resources Division
Ms. Farzana Chowdhury
Head of SME Banking Mr. Mohammed Rahmat Pasha
Head of Treasury & Financial Institution
Mr. Abedur Rahman Sikder
Head of Marketing & Corporate Affairs
Mr. Khwaja Shahriar
Head of Corporate Banking
Mr. Md. Sarwar Ahmed
Head of Impaired Asset Management
Mr. Shah Alam Bhuiyan
Head of Enterprise Risk Management
Mr. Faruk Ahammad
Head of Financial Administration
Mr. Mizanur Rahman Chowdhury
Head of Technology
3.19. DIFFERENT DEPARTMENTS OF BRAC BANK LIMITED:
There are many concern departments, which are always taking care to give proper and adequate service to the clients. Different departments of BRAC Bank are follows:
Corporate Banking
Retail Baking
Trade Finance
SME (Small & Medium Enterprise) Division
GIS (General Infrastructure Service)
Credit Division
CSD (Consumer Service Delivery)
Remittance FAD (Financial Administration
Department)
Treasury
CID (Channel Infrastructure
Department)
IT (Information Technology)
HRD (Human Resource Department)
Risk Management
LA (Loan Administration)
Marketing & Product Development
3.20. CORPORATE BANKING:
The Corporate Banking Division provides full range of commercial banking products and services. Many Departments such as Foreign Trade, Treasury, and Credit Administration etc. play the support role for a comprehensive range of service to the corporate Banking Division.
BRAC Bank’s Corporate Banking team exists to provide both banking services and a financial partnership with local large and medium corporate, trading houses and joint ventures. As the financial partner of choice for the corporate sector
Corporate Banking Structure:
The Corporate Banking Division has a centralized structure through on-line banking system. Any credit facility is processed at the Corporate Banking Division, Head Office. After sanctioning of the facility, the limit is put online and the CONSUMER can enjoy the facility from any of the BRAC Bank branches.
Strict adherence to internal control guidelines and other legal and statutory compliance are followed. The Credit approval process involves separate Credit Division, the Managing Director and finally the Board.
Product/Service objectives:
The Corporate Banking Group would try to serve the financial market of the country with the following objectives.
To develop and sustain mutually beneficial CONSUMER relationships based on high quality service and innovative products.
Maintaining a diverse and quality asset base and pursue a sustainable growth strategy.
To pursue a management style that contributes to the well-being and development of a fully responsible and accountable workforce under a high corporate standard and business ethics.
To provide and deliver services in a cost-effective manner.
3.21. RETAIL BANKING:
Most of the Bank In our country are operating locally basis. So, most of their functions are concentrated on retail banking. BRAC Bank Limited is not exception of them. It has 36 Branches all over Bangladesh. The branches are as follows:
DHAKA ZONE
Gulshan Branch
Motijheel Branch
Motijheel Graphics
Nawabpur Branch
Keranigonj Branch
Dhanmondhi Branch
Satmosjheed Road Branch
Banani Branch
Moghbazar Branch
Uttara Branch
Mirpur Branch
Narayongong Branch
Gonakbari Branch
Sonagazi Branch
Rampura Branch
Shamoly Branch
Comilla Branch
Monohordi Branch
Tongi Branch
Dohar Branch CHITTAGONG ZONE
Agrabad Branch
Momen Road Branch
Coxbazar Branch.
CDA Avenue Branch
Patia Branch
Halishar Branch
SYLHET ZONE
Sylhet Branch
Zindhabazar Branch
Beani Bazar Branch
Bishwanath Branch
Nobigonj Branch
Molulvi Bazar Branch RAJSHAHI ZONE
Rajshahi Branch
Bogra Branch
KHULNA ZONE
Jessore
Branch
Barisal
Branch
There is One Sales Center in Badda, which sells A/C of all branches. BRAC Bank has planned to open more Branches Within this year all over the country. There are more than 410 unit offices under SME division to support retail banking. Retail banking offers every facility except Corporate Transaction.
3.22. TRADE FINANCE:
Trade finance originally facilitates “International Business” They handle L/C (Letter of Credit) and do necessary activities related to international trade.
Check validity & authentication of trade license; import Registration Certificate, TIN Certificate, Vat Registration Certificated, and Insurance Cover Note. Received L/C LIMIT from Corporate. Signature Verification of Import on L/C App. Form & Performa Invoice check importer’s Signature on L/C AF & IMP form, available balance of Importer’s A/C. L/C Liability Create, Margin & Income realized From Importer’s Account, entry to L/C ledger & register book. LC Proposal sent through SWIFT after proper authentication.
Checking All Shipping Documents as Per LC Terms & Conditions. If the Documents are in order, Inions CONSUMER to Take Delivery of Documents by paying the equivalent BDT of doc’s value. Fund Requisition to Treasury. Create PAD/ L RT in The System & Complete P AD/L TR. L TR to be created under corporate approved limit and Payment instruction to the reimbursing bank as per negotiating Bank’s instruction. Adjust PAD by realizing PAD outstanding Amount item Importer’s A/C. Handover the original documents to the Importer with due endorsement by Authorize Signatory. Handle submission of “Bill of Entry” Maintain Letter of Credit Report. Check The Copy Documents as per Terms & Conditions of L/C 100% Margin build up in equivalent BDT of documents value by debiting importer’s A/C. Cheek validity & authentication of Trade License, Export Registration certificate, and TIN certificate, VAT Registration Certificate & Insurance Cover Note.
Trade Finance Check EXP certificate, C&F certificate Issue, NOC Certificate Issue, Intimate to Exporter after Receiving Remittance. Collect necessary documents from Exporter & Credit export proceeds if documents found in order. They pass necessary voucher/ register Entry. Send Export documents for Collection to Foreign Bank (bill of exchange, Invoice Packing List, Certificate: Of Origin, Bill Of Lading or Airway Bill, GSP Certificate) with Bank Forwarding & document endorsement. Receives remittance credit proceeds to party A/C after realized necessary charges. Pass necessary voucher & Entry in Export register. Receive Guarantee proposal from Corporate Division with their approval. Create Guarantee liability. Check balance of client A/C. Realizing margin and other necessary charges. Entry guarantees register & ledger. Issue Bank Guarantee as per approval and signed by Authorized Signatory.
3.23. SME (Small & Medium Enterprise) DIVISION:
This department of BRAC Bank Limited works widely over the country. There are more than 300 unit offices of SME division all over the country sell different type of loan to different small and medium enterprise. They provide loan, which are to be paid in installment. This department also monitors the recovery of the loan and in case of inconsistency they take necessary action to recovery the loan.
Product Features of SME:
There are 4 products Of SME:
• Aroggo Rin
• Apurbo Rin
• Pathshala Rin
• Supplier Finance:
3.24. GIS (General Infrastructure Services):
Present infrastructure:
Senior Manager, GIS
Manager, Procurement
Manager, Operations
Manager, Logistics
Manager, Premises and Maintenance
Procurement:
Need Assessment, Evaluation and Setting the target of procurement
Procedural formalities in terms of approval for procurement
Vendor management & negotiation
Cost effectiveness
Quality control
Timely supply
Supply chain management.
Operation:
Handle bog and resolve all GIS related queries in 24-hour basis in the form help desk concept.
Follow procedures for continuation of business and crisis management.
First contact person to receive and record complaints including all types of requisitions and forward those to concern GIS units.
Handle all security related issues.
Manage and control dispatch.
Logistic:
Arrange facilities and services for the key bank events.
Maintain Petty cash to rent up sudden logistic needs.
Manage vehicle fleet of the bank.
Negotiate contracts for provision of outsourced services.
Official Trail Arrangements.
Premises and Maintenance:
Ensure comfortable and secure working environment.
Asset management.
Insurance coverage of all bank assets.
Manage all related issue of Maintenance
3.25. CREDIT DEPARTMENT:
Basic Definition: A Contractual agreement in which borrower receives something of value now agrees to repay the lender at some later date, Loan-an arrangement in which a lender give or property to a borrower, and the borrower agrees to ruler the property or repay the money, usually along with interest, at some future point(s) in time. As Financial intermediaries, Lending is one of the main functions of a Bank.
Functions:
At present, Credit Division performs following activities:
• Credit Approval/Process:
1. Retail Credit
2. Corporate Credit
3. SME (From 15 to 30 lac) • Collection & Monitoring Activity
1. Central Collection Unit (CCU).
Objectives:
Managing credit exposure
Managing credit risk
Compliance with the issue of Bangladesh Bank & BRAC Bank Ltd.
Support all businesses of the Bank
Collection of Overdue loans
Recovery of Bad debts.
Delegation Authority:
Approved by Board of Director
(Based on Secured & Unsecured Nature) (BDT Lac)
Credit Analyst/approver 3.00-50.00
Head of Credit 10.00-100.00
Deputy Managing Director 50.00-5000.00
Managing Director 100.00-1000.00
Credit Committee/Board Above 1000.00
PRODUCTS:
Credit Division supports the businesses products of following Divisions:
Retail
Corporate
SME
Category of Products on the basis of security:
Secured Facility
Partly Secured/ Unsecured Facility
Secured Facility:
Which is baked by 100% Cash Covered/ other security
Secured Loan
Secured Overdraft
Premium Term Deposit (PTD)
Car Loan
Home Loan
Basic Elements for Judging a Borrower:
5 C’s of Credit
Character
Capacity
Capital
Conditions
Collateral
Source of Borrower Study:
Loan application
Financial statement
Study of Account
Market reputation
Bangladesh Bank
Different Banks
Personal Interview. Personal Visit
Net-Worth Position
Other Source:
– Registration Office
– BRTA
– Press report
Credit Principals for Lending Decisions:
Assess the Consumer’s character for integrity and willingness to repay
Only lend to the Consumer who belongs to a fixed Income or stable business income.
Only lend to the staff of widely known and highly reputed companies having an unquestionable business track record.
Only lend to the staff of such companies, which have professional career advancement platform for its people.
Assess carefully the Integrity and loan repayment capacity of the guarantor.
Plan for the possibility of default.
Use common sense and past experience in conjunction with thorough evaluation and credit analysis. Do not base decisions solely on Customer’s reputation, accepted practice, other lender’s risk assessment or the recommendations of other officers.
Behave ethicality in all credit activities.
Be Proactive in identifying, managing and communicating credit risk
Be diligent in ensuring that credit exposures and activities comply with the requirement set out in this Product Program.
STEPS To Recover Default loan:
Letter to be dispatched
1st Reminder Letter
Follow up over phone
2nd Reminder Letter
Single Visit
Sl. (Standing Instruction) No. to Follows
3rd Reminder letter with CC to guarantor
Group visit by Recovery team member
Letters to employer, Reference & all above effort follows.
Call up total loan
Call up total loan from Guarantor
Final reminder mentioning legal action to be followed after 15 days.
Other collection effort continue
Serve legal notice
Letter to different Banks/Association &
Other collection efforts continue.
How CCU perform its job:
Maintain Daily note after making contact with them.
Maintain individual file for 3 ATE & above defaulter
Generating reminder letter system (in-bunt) & mail them.
Provide various reports to the management.
3.26. CONSUMER SERVICE DELIVERY DEPARTMENT:
It is the processing Center for BRAC Bank. All the back office activities take place in this department. It performs the following activities:
Ensure cheque requisition requests are attended.
Ensure cheque Books are printed and checked as specified in the requisition request.
Mailing of cheque books to the respective branch
Ensure cheque leaves stock register are properly maintained
Ensure A TM Card requisition requests are attended
Ensure ATM Cards are checked as specified and delivered to the respective locations.
Ensure Blank ATM Cards are balanced as per inventory register.
Ensure Cheque Books, ATM Cards are delivered to the respective branches at the specified timeline.
Mailing welcome letter
Mailing FDR renewal
Dormant account activation
Reactivation of Dormant/Closed Account
Account opening data entry in system
Maintain Sufficient stock of Govt. Bonds/Coupons
Timely reporting of reimbursement/Claiming statement of Govt. Bonds
Statement of commission earning of Govt. Bonds on a monthly basis
Welcome Account Opening
Change of Address in software system
Changing made of operation of company account
Opening of Instant Cash Account
Printing and mailing of account statement month/quarterly/half yearly/yearly.
Maintain sufficient of statement letter sheet/welcome letter/letter half paper/ATM card
holder/ATM Welcome letter/Terms & condition/ATM Card/ Cartridge.
3.27. CONSUMER SERVICE DELIVERY (CSD) DEPARTMENT:
A Centralized Service delivery department of BRAC Bank Limited with a Dynamic Vision to provide smooth and efficient service to our valued Clients.
Consumer Service Delivery (CSD) is a new concept to the Banking industry where real time back offices functions have been processed within prescribed SOP. Mr. Kasier Tamiz Amin, EVP and COO, has implemented this modern idea to BRAC BANK since 13th March 2003(He leave the Bank on 14th August 2008 and join DHAKA BANK). In the very beginning a two-member team was formed with young and experienced professional to conduct day-to-day processes timely, accurately and efficiently. Central Processing Consumer Service Delivery (CSD) handled primarily only Clearing Cheques Process.
Today Consumer Service Delivery (CSD) consists of 12 (twelve)-Member team, Handling following processes.
• Bangladesh Bank General Check Clearing.
• Bangladesh Bank same Day Check Clearing.
• Account Opening.
• Check Book printing.
• Welcome Letter.
• Account Statement Printing and delivery. • Chance of Address and Account Mandate.
• Corporate client Salary.
• Treasury Back office Functions.
• Account Dormant and Reactivation.
• Day close and Upload for all Branches within Dhaka.
• ATM Card production and Delivery.
CSD Departmental Chart
3.28. ACCEPTING DEPOSITS:
Accepting deposits is one of the most important functions of commercial banks. The deposits are accepted by BRAC Bank may be classified in to
• Demand Deposits • Time Deposits
Demand deposits:
Demand deposits are those, which are withdrawn able on demand by using check. The demand deposits accounts are
1. Saving Account
2. Current Account
Time Deposits:
Time deposits are such deposits, which are not, withdrawn able on demand but con be drawn after a stipulated time. Banks pay higher interest rate against such type of deposit account. There are many time deposit accounts.
1. Fixed Deposit Receipt Account (FDR)
2. Abiram Account
3. Short Term Deposit (STD)
4. Deposit Premium Scheme (DPS)
5. Premium Term Deposit
3.28.1. SAVINGS ACCOUNT:
Savings bank account is a demand deposit. It can be withdrawn able by using check. It is a good means of accumulating the savings from the large section of the population with lower income. Bank pays come interest on saving account. Currently BRAC Bank is ‘Paying interest of 5.50% per annum. The depositor can deposit sum of amount whenever he wants, with minimum balance restriction. Benefits received from saving account.
Interest is paid on a daily balance method.
Interest is given each-day for whatever balance is maintained in the account that day.
Interest paid at 6% per annum on days when the balance is under TK 20,000.
There is no restriction on the number of withdrawals.
No forfeiture rules or hidden cuts.
There is no requirement for notices to be given before making a withdrawal.
The account holders will receive some other benefits. Such as:
He/she is eligible to apply for the personal loan packages and can also open other additional accounts and fixed deposit with the bank.
He/she will receive preferential treatment at the time of processing of their loan applications.
He/she will receive discounts on remittance commissions.
Opening of Savings Account:
Any person who is of sound mind including a minor can open a savings account. The requirement to open an account is as follows:
1. Bank’s prescribed account Opening form to be signed by applicant in front of BM/RM/CSM.
2. Two copy of recent passport size photograph attested by the introducer.
3. Specimen Signature Card to be signed by the applicant in front of BM/RM/CSM.
4. Any of the following identification documents like current valid passport, proof of address, ID card, commissioner certificate etc. In this case Certifier should attest applicant’s photograph along with signature.
3.28. 2. CURRENT ACCOUNTS:
Current account is an account where the account holder-within the funds can make numerous transactions without any restriction. No interest is paid on these deposits. Current account is mainly suitable for business transaction. However, it can be opened by any individuals aged 18 years and above.
Benefits received from Current Account:
There is no restriction of the number of withdrawals.
There is no restriction of the amount or size if a withdrawal.
No forfeiture rules or hidden cuts.
No requirements for notice to be given before making a withdrawal.
Opening of Current Account:
Individual, Joint, Partnership Firm, Sole Proprietorship, Club or Society, Public or Private Limited Companies opens Current Account for different purposes. There is also some difference as to open an account by different concerns.
The procedure for individual and joint Account:
The following documents duly completed shall be obtained from the Consumer at the time of opening of Current Deposit Account for Individual and Joint Account:
1. Bank’s prescribed account Opening form to e signed by applicant in front of BM/RM/CSM.
2. Two copy of recent passport size photograph attested by the introducer.
3. Specimen Signature Card to be signed by the applicant in front of BM/RM/CSM.
Any of the following Identification documents:
Name of Identification document Issuing Authority
Current valid passport Passport office
Valid driving License Bangladesh Road Transport Authority
Voter ID Card Election Commissioner
Armed forces ID cared Employer or Their Delegate
A Bangladesh employer ID card bearing the Photograph and Signature of the applicant Employer or their delegate
A certificate forms any local government organs such as Union council chairman, ward commissioner etc. In this case certifier should attest applicants Photograph along with signature. Up chairman or Ward Commissioner.
Trade License with photograph can be accepted for individual’s Local Government authority. Up Chairman, Pourashava Chairman or Ward commissioner.
Procedure for Sole Proprietorship Account:
The following documents are required for opening a sole proprietorship account:
1. Bank’s prescribed account Opening form to be signed by applicant in front of BM/RM/CSM.
2. Two copy of recent passport size photograph attested by the introducer.
3. Specimen Signature Card to be signed by the applicant in front of BM/RM/CSM.
4. Copy of valid Trade license issued by local Government authority such as City Corporation, Pourashava, Union Parishod etc.
5. Permission from Bangladesh Bank for Buying House, Indenting or other Specific Business.
6. TIN issued by Income Tax Authority.
7. The personal Identity of the Proprietor of the firm has be established by any of the documents as mentioned in individual or Joint CONSUMER Category. If the Trade license carries the photo and signature of the Proprietor this is not required.
Procedure for Limited Company Account:
1. Bank’s prescribed account opening application form. 2. Certified copy of the Memorandum and Articles of Association of the Company.
3. Certificate of Incorporation. 4. Certificate of Commencement of Business (for Public Limited Company only).
5. Extract of Board resolution sanctioning the account opening and signing authority.
6. List of the Directors with address in form.
7. Photograph of the Signatories, Copy of valid Trade License.
9. Introducer’s Signature in the Account Opening Form and at the back of the photograph(s) of account holders(s).
10. List of names with appointment letter and Specimen Signature of the persons authorized to operate the account.
11. The personal identity of all the directors or beneficial Owner(s)
Proprietor of the firm has to be established by any of the documents as mentioned in Individual or Joint CONSUMER Category.
Procedure for Partnership Account:
1. Bank’s prescribed account Opening form to be signed by applicant in front of BM/RM/CSM.
2. Certified copy of Partnership Deed or agreements.
3. List of the Partners with address.
4. Extract or resolution of the partner meeting.
5. Copy of Valid Trade License, Photograph of the Signatories or Partners.
7. Specimen Signature Card to be signed by the signatories in front of BM/RM/CSM.
8. Introducer’s Signature in the account opening form and at the back of the photograph(s) of account holder(s).
9. Identify of all partner or Directors must be verified in line with the requirement for personal Consumers, where a formal partnership agreement exists, a mandate from the partnership authorizing the opening of an account and conferring authority of those who will operate it should be obtained.
10. Evidence of the Trending address of the business or partnership should be obtained and a copy of latest report and accounts (audited where applicable).
11. An explanation of the nature of the business or partnership should be ascertained (must not necessarily verified from a Partnership Deed) to ensnare that it has a legitimate purpose.
3.28.3. FIXED DEPOSIT RECEIPT ACCOUNT (FDR):
Fixed deposits are time deposit or time liabilities. Banks pays higher rates of interest, as the deposit is not withdrawn able or demanded. The Fixed Deposit account is opened for a fixed period; it may be 1 month, 3 months, 6 months, 1 year, 2 years and 3 years. Different rates or interest are allowed for different period and also depend on amount.
Opening of Fixed deposit Receipt (FDR) Account:
Before opening a Fixed Deposit receipt (FDR) Account a CONSUMER must have an account with the bank. Then the CONSUMER has to fill up an application form that contains the following,
Amount in figures
Beneficiary’s name and address
Period & date of issue
Rate of Interest
Date of maturity
Instructions if any
After the submission of the Bank’s prescribed account opening form dully filled up, the following woks have to be done:
1. Specimen Signature Card to be signed by the applicant in front of BM/RM/CSM.
2. Two Passport size photograph of the account holder.
3. Depositing the amount in his account.
4. Bank will issue FDR receipt.
Maturity Date and Withdrawals:
The following points are considered regarding maturity period and withdrawals or Fixed Deposit Receipt (FDR) account:
The Fixed Deposit Receipt will be matured after the specified period.
If the FDR is withdrawn before maturity period, interest will be issued.
Interest is calculated per annum basis. Interest rate is 7.75% to 8.50%.
At the maturity period on the account holder should come himself and put his specimen signature on the back of Fixed deposit
3.28.4. ABIRAM ACCOUNT:
BRCK Bank Abiram Account is a special type of Fixed Deposit Scheme, which offers the flexibility and comfort of having a guaranteed monthly return on your investment. An amount of cash is deposited n Bank for a fixed period specified in advanced in this deposits. Banks pays higher rates of interest, as the deposit is not withdrawn able on demand. The Abiram account is opened for a fixed period. The period may be one year, two year, and maximum of three years. Different rates of interest are allowed for different period and it also depends on amount.
Opening of Abiram account:
Before opening an Abiram Account a CONSUMER must have an account with the bank. Then the CONSUMER has to fill up an application form that contains the following:
The Abiram Account will be matured after the specified period.
If the Abiram account is withdrawn before the maturity period, interest will be issued at the prevailing Savings Account rate.
Interest is calculated on a monthly basis. Interest rate is 8% to 7.5% depending on amount and time. At the maturity period the account holder should come himself and put his specimen signature of the back of Abiram account receipt. Then the banker verifies the signature and retains the Abiram Account receipt and will give him the amount in cash or as required. Abiram account offers loan facilities up to 95% of deposit.
3.28. 5. SHORT TERM DEPOSIT (STD) ACCOUNT:
In Short Term Deposit account, the interest is calculated on daily basis. The interest offered for STD is less than that of savings account. Various big companies, organizations, Government Departments etc keep money in STD account. Frequent withdrawal is discouraged and requires no prior notice. The rate of interest for STD account is currently 5% per annum and the investment should be minimum one Lac and above.
In BRAC Bank, usually customer gives an instruction to the bank that their current account will be transferred to the STD account. So Bank follows this instruction by giving following entries,
Consumer’s Current Account Debit
Consumer’s STD Account Credit
3.28. 6. DEPOSIT PREMIUM SCHEME (DPS):
BRAC Bank introduces the Deposit Premium scheme (DPS), a truly special savings plan that allows saving on a monthly basis and getting a handsome amount at maturity. An amount is deposited in a bank for a fixed period of time. Bank Pays higher interest rate and there are a range of options for both installment size and maturity. An amount is deposited in a bank for a fixed period of time. Bank pays higher interest rate and there are a range of options for both installment size and maturity. Maturity period may be 4/7/11 or 14 years.
Consumer’s Savings Account Debit
Consumer’s DPS Account Credit
In BRAC Bank, usually Consumers saving account will be debited whenever its deposited amount crosses a certain limit and this amount will be transferred to the DPS account. So bank gives following entry: Before opening a Deposit Premium Schemes (DPS) Account a Consumer must have” a Savings account with bank. Than the CONSUMER has to fill up an application form that contains the following:
Amount in figures
Beneficiary’s name and address
Period
Rate of Interest
Date of Issue
Date of maturity
Instructions if any.
Maturity Date and Withdrawal of Deposit Premium Scheme (DPS):
The following points are considered regarding maturity period and withdrawal of Deposit Premium Scheme (DPS) Account:
The DPS Account will be matured after the specified period.
Deposit Premium Scheme can be en-cash before the maturity period, and interest will be issued.
Interest rate is 8.5% to 9.75% depending on amount and time.
At the maturity period the account holder should come himself and put his specimen signature of the back of DPS account receipt. Then the banker verifies the signature and will give him the amount in cash or as required. Deposit Premium Scheme (DPS) offers loan facilities up to 90% of deposit.
3.28.7. PREMIUM TERM DEPOSIT:
BRAC Bank Premium Term Deposit is a 5 year term Fixed Deposit. Unlike conventional Deposits, Premium Term Deposit provides a guaranteed return. Bank pays higher interest rate.
Opening of Premium Term Deposit:
Before opening a Premium Term Deposit a CONSUMER has to fill up an application form that contains the following:
Amount in figures
Beneficiary’s name and address
Period Rate of Interest
Date of Issue
Date of Maturity.
Maturity Date and Withdrawal of Premium Term Deposit:
The following points are considered regarding maturity period and withdrawal of Premium Term Deposit:
The Premium Term Deposit will be matured after 5 years Fixed Term.
Interest rate is 17% per annum.
Interest Rates of Deposit Account
Types of Account Interest Rate
Savings Bank Account 5.50%
Fixed Deposit Receipt (EQID)
1 Moths up to 3 months
3 Moths up to 6 months
6 Moths up to 1 months
1 year up to 2 years
2 years up to 3 years
7.75%
To
8.50%
Short Term Deposit (STD) 5%
3.28. 8. ACCOUNT OPENING PROCESS BY CSD:
Consumer requests opening of account and after completing the form, Consumer Service Officer scrutinize account opening form and establish account. Then he enters the account details in numerical control register. Consumer Service Officer Submits forms with all documents to Operation Manager for Review. Operation Manager rechecks all documents, signs off and submits to Branch Manager for approval. If in order, Branch Manager approves the file and return to Operation manager. Manager Operation sends the file to Consumers Service Officer. CSO then do the photocopy of the form and segregates Specimen Signature Card, Keeps one in Signature cabinet sends another with photocopy of his account opening form to Consumer Service Delivery (CSD). CSO enters all account opening form and specimen signature cards in a log sheet in triplicate daily basis and hands over to Operation Manger Keeping the log and if satisfied send the account opening from to Consumer Service Delivery to inputs data in Millennium Banking System (MBS) Client Database and Scanning of the Signature Cards. CSD receives the account opening form and signature cards and sign of in the duplicate copy of the log sheet and sends back to branch. Consumers Service Officer files the received copy.
Observation:
However, it has been observed that all the procedure regarding opening an account, a great deal or personal judgment is required by the banker to verify the Consumer. Extra care should be taken in case of Public and Private limited companies regarding the documents. The banker customer relationship is the ultimate key to success, so the customer should be chosen appropriately
3.29. SHANCHAY PATRA:
BRAC Bank sells two types of Shanchay Patra on behalf of the Government. The Sales Statement of Shanchay Parts must be sent to Bangladesh bank Within 72 hours of sale, otherwise the bank has to pay penalty to Bangladesh bank. BRAC Bank gets commission of the total sales.
Type of Shanchay Patra Interest Rates
3 years Shanchay Patra 10%
5 years Shanchay Patra 10.5%
Shanchay Patra Issuance and Encashment by CSD
Branch Consumer Service Officer receives the application form for issuance of Shanchay Patra and a letter of Debit authority along with declaration form. And for Encashment of Shanchay Patra Consumer Service Officer receive Coupons along with encasement request form and a photocopy of Registration slip. In both the cases receive stamp will be used, receiver will put initials, and client’s signature must be verified by the receiver. At the end the Shanchay Patra Issuance of or encashment details must be logged in the Form T and forward to Consumer Service Delivery (CSD). After receiving the instruction and instrument, CSD will then transaction. For Issuance, Shanchay Patra will be issued respective branch with in 36 working hours. And for Respective account will be credited with in 24 working hours.
3.30. CHEQUE BOOK PRINTING:
Consumer is issued Chequebooks to operate different types of account such as Savings account, Current account etc. The CONSUMER is issued new Chequebooks whenever the old one is used in full. The following procedures are maintained for issuing a Chequebook.
• The Consumer can avail the new Chequebook on his own.
• The Consumer will submit Cheque requisition slip with his signature on it.
• The Leaves of the new Chequebook have to be counted to check that all the leaves are intact.
• The name and the account number of the Consumer shall be entered in the chequebook register.
• The name, the account number and types of account of the CONSUMER shall be entered on the requisition slip.
3.30.1. PROCESS OF CHEQUE BOOK PRINTING:
Customer fills in Chequebook request slip and Consumer Service Officer varies authenticity. Consumer Service Officer prepares a log of all requests in duplicate. CSO hands over the request slips to Cheque Book issuer with the log. Consumer Service Officer receives and signs on the duplicate copy of log and send back to other Consumer Service Officer. Then he/she issues Chequebooks and sends the request to Consumer Service Delivery (CSD) to print the Chequebooks. In case of new Chequebook Consumer Service Officer only issue the Cheque leaf. After printing the Cheque books Consumer Service Delivery (CSD) send the Chequebooks to branch. Operation Manager received the Cheque book and sign off in duplicate request paper which is send by Consumer Service Delivery (CSD) and then send back it to Consumer Service Delivery. Operation Manager Hands over the Chequebook to front office Consumer service along with the request. Front office Consumer Service Officer keeps the Chequebooks in Chequebooks box after entry in the Chequebook register.
3.30.2. RISK OF CHEQUE BOOK PRINTING:
Consumer Service Delivery (CSD) takes all the necessary steps to prevent mistakes of Chequebooks printing but still there are some risks of Chequebooks printing.
These are:
• Costumer request is not made properly.
• Issuer may issue wrong account number.
• The issuer may issue wrong number of Cheque leaf.
• Authorize person of Consumer Service Delivery who Print the Chequebooks, he/she may print the wrong account number or wrong Cheque leaf.
3.30.3. RISK OF CHEQUE BOOK INVENTORY:
There are some risks of Cheque Books inventory. These are
• Proper request may not be placed.
• Head office may send more or less number of leaves.
• On the way Cheque leaves may lost.
• Custodians may supply more or less bundle of Cheque leaves.
3.31. CLEARING OF CHEQUE:
BRAC Bank is a scheduled bank. According to the Article 37 (2) of the Bangladesh bank Order, 1972, the banks that are members of the clearing House are called as “Scheduled Banks” The scheduled banks clear the Cheque drawn upon one another through the Clearing House. This is an arrangement by the Central bank where every day the representatives of the member banks garter to clear the Cheques. The place where the banks meet and settle their dues is called the “Clearing House”. The Clearing House sits for two times in a working day.
3.31.1. PROCESS OF OUTWARD CLEARING CHEQUES:
Cash and Client Service Officer will receive Other Bank Cheques over the counter. During deposit teller check the following things
• Whether the particulars bank and branch name have been written in the deposit slip correctly or not.
• Teller check date and amount of Cheque written in the deposit slip.
• Teller verifies the Consumers account number and name in the millennium Banking System (MBS).
After checking the above things, Cash and Client service Officer receives the Cheques and returns the Consumer’s copy of the deposit slip. Then teller enter the details of the beneficiary in the MBS and at day end sends all the clearing Cheques to Consumer Service Delivery (CSD) with a deposit slip and calculator tape of Cheque amounts and a form T filled up with the figure and number of Cheques (branch wise). CONSUMER Service Delivery (CSD) receives the Cheques and put entries in NIKASH for sending to central Bank for the next day Clearing House. After input in NIKASH, an authorized person of CONSUMER Service Delivery (CSD) put necessary clearing stamp and endorsement are given in the cheques. After posting of all cheques schedules are printed and stapled with schedule and diskette are sent to central bank Clearing House. In the afternoon all passed Cheques are cleared in MBS and funds are then available in respective accounts. The return Cheques are entered in return register and kept in the clearing box. The return Cheques are either lodged again as per instruction or send back to customer with the return memo through respective branches showing a cause.
Risk of Outward Clearing Cheques:
Central Processing Center (CSD) does all the necessary processing and steps but there are some risks of outward clearing Cheques. These are
1. The Cheques may be post dated or stale.
2. Amount in word and in figure may be different.
3. Over writing in the Cheques.
4. Cheques number may be wrong
5. Wrong amount may lead to day end imbalance in clearing
6. For wrong account number the amount cannot be credited in the CONSUMER account.
7. Information entered in the Millennium Banking System may be missed out and thus the amount will not be credited in the way.
8. The Cheques may be lost on the way.
9. The money of the Cheque can be withdrawn through other Bank by fraudulent activity.
10. Cheques may be place with wrong endorsement.
11. Clearing stamp with wrong date.
12. The diskette may be bad or not copied correctly and thus all Cheques cannot be lodge in Clearing House and not returned in MBS. And thus account is credited for which the Cheque is not cleared, bank may incur loss.
Observation:
However, it has been observed that all the procedure regarding outward clearing Cheques, the banker should take preventive measure. He/she must check account number and name in Millennium Banking System (MBS) before customer leaves the counter. Special crossing should be put immediate after the receipt of Cheque. The banker should enter every Cheque in the MBS soon after writing the account number of beneficiary on the back of the cheque and put initials as proof on entering. If possible, Photocopy of all Cheques should be retained at branch before sending. Total number of Cheques should be counted and be tallied with the calculator tape. The Cheques should be checked whether there are correct stamps in place when they are stapled with schedule. In case of renewed Cheques supervisor should check the entry in the register and he should put initial in register.
3.31.2. PROCESS OF INWARD CLEARING CHEQUES:
Clearing man receives drawn on BRAC Bank Ltd. at Central bank Clearing House. Tally the total amount in each bank schedule by taking calculator tape. Bring the Cheques to Consumer Service Delivery (CSD) and check the apparent tenor of the Cheques. Then the Cheques are posted in Millennium Banking System (MBS) and pass the Cheques by verifying signature. If the Cheques cannot be honored due to any reason the matter should be taken to the notice of the Manager of Consumer Service Delivery (CSD). If any Cheques are returned, that should be returned in NIKADH with specific reason. Return Cheques are entered in cheque return register with the reason of return. The manager of CONSUMER Service Delivery (CSD) signs the return memo and put initials in the return register. NIKASH entries are (CSD) signs the return memo and put initials in the return register. NIKASH entries are copied in diskette and the return Cheques with schedule and the diskette are sent to return clearing House. Necessary entries for passed Cheques and return Cheques are passed in MBS to the respective GL Heads including inter branch postings. All the passed Cheques accounting vouchers are sent to accounts department after clearing balancing.
Risk of Inward clearing Cheques:
Consumer Service Delivery (CSD) does all the necessary processing and steps but there are some risks of Inward clearing Cheques. These are
1. The amount of total Cheques may differ from the schedule, which will create imbalance in clearing as well as Bank account with Central bank may be transacted for wrong Amount.
2. Wrong drawn Cheques may be paid for which bank may face severe audit comment and even financial loss.
3. Wrong amount may be posted results day end imbalance and chance of forgery.
4. Dishonored Cheques reason identified may not be correct insufficient fund, but the Consumer has other arrangement like overdraft limit or a collection cheque pending.
5. Wrong entry may be given with wrong reason.
6. Diskettes may have bad sector resulting no copy.
Observation:
It has been observed that the banker should take all the procedure regarding inward clearing Cheques extra care. The amount of each Cheque must be tallied with the schedule. If not the matter should be notified to the respective bank representative immediately in the clearing House. Special care should be taken in passing clearing Cheques as because a large number of Cheques are passed in a very specific short time span.
3.32. TREASURY FUNCTIONS BY CONSUMER SERVICE DELIVERY (CSD) DEPARTMENT:
BRAC Bank has a strong presence in the treasury market in Bangladesh. From 24 the April 2004, Bangladesh Bank Cheque or Drifts Issuance process and some Treasury Operation functions are centralized in CONSUMER Service Delivery below:
Bangladesh Bank (BB) Cheques/Drafts Issuance:
Three Signatories have been assigned to head office CONSUMER Service Delivery (CSD), Consumer Service Manager and alternate branch manager. Consumer Service Delivery will keep the Bangladesh Bank Cheques/ Drafts in its possession during transaction. In absence or leave situation of head of CSD, Consumer Service Manager will officiate his responsibility. After transaction hour cheque or drafts will be kept in the vault under dual custody. Transaction hour implies central Bank prescribed hour. Central cash Control (CCC) or other Division! Department will send their fund requisition (in prescribed format) against Bangladesh Bank Cheques or Drafts to Treasury. Only after acknowledgement from treasury front office, Treasury operations will send request to CONSUMER Service Delivery (CSD) to issue the Cheques or Drafts. ALL Bangladesh Bank Cheques or Drafts will be issue by CSD only after the advice from Manager Treasury Operation’s or Designee through Lotus notes. Treasury Operations will provide Bangladesh Bank Cheques or drafts to Consumer Service Delivery (CSD>>. Custodial of Bangladesh Bank Cheques or Drafts will send a request to Treasury Operations for new Cheques or Drafts prior to existing Cheques or drafts. All Cheques or Drafts must be crossed. Cheques or Drafts for cash withdrawal, the authorized Signatories will cancel crossing and the Signatories at the Bank end or the Cheques or Draft will attest authorized person’s signature. A register will be maintained to keep the records of the Cheques or Drafts issuance detail. At the day end, head of CONSUMER Service Delivery (CSD) or designee will tally the counterfoils with register and put his signature. Photocopy of all issued Cheques or drafts will be retained in a file. For the cancellation of a cheques or drafts two authorized Signatories will put signature and marked “Cancelled” on the Cheques or drafts two authorized signatories will put signature and marked “ Cancelled” on the Cheques or drafts and kept that Cheques or Drafts with the counterfoil, retain it in a safe custody for audit trail. After exhaustion of Cheques or Drafts Book, CSD will send that counterfoil of Cheques or Drafts book to Treasury operations. Fund requisition from SME or any urgent Bangladesh Bank Cheque requisition from Head Office will be issued by Treasury Operations.
Bangladesh Bank (BB) Cheques /Deposit:
Consumer Service Delivery (CSD) will receive Bangladesh Bank (BB) Cheques or Drafts form other commercial banks. Bangladesh bank (BB) Cheques or drafts from clients will send to CSD before 2 P.M (Saturday-Wednesday) and 12 noon (Thursday) sharp. Bangladesh Bank (BB) Cheques or drafts receiving Division/Department should inform Treasury prior to deposit thru Lotus notes. A register will be maintained to keep record of the receiving Cheques or Drafts details. At the end or the day, head of Consumer Service Delivery (CSD) or Designee will tally deposit slips with the register and put his signature. Bangladesh Bank Cheques or Drafts received after cut of time will be deposited in next working day and over night Cheques or Drafts will be kept in vault or fireproof cabinet under dual custody. Counterfoil of Bangladesh bank Cheques or Drafts deposit slip will keep in a file sequentially.
Centralization of Treasury Functions:
Bangladesh Bank Cheques or Drafts issued under Treasury function will be delivered to Counter Parties from Consumer Service Delivery (CSD). Bangladesh bank Cheques or Drafts issued by the Counter Party will be received by CONSUMER Service Delivery (CSD) accumulate other banks Cheques or Drafts up to 2 P.M. (Saturday-Wednesday) and 12 noon 9 Thursday) and send those to Bangladesh Bank for deposit. Manager Treasury Operation or Designee will send request to CONSUMER Service Delivery (CSD) for the issuance of Cell Money Receipt, fixed Deposit, Bangladesh Bank Reports, and other correspondences. Under advice from treasury Operations, authorized persons from CONSUMER Service Delivery (CSD) will sign on the document jointly and deliver it to Counter Party. Treasury Operations will pass necessary accounting entries on the above transaction on account of Bangladesh Bank.
3.33. PROCESS OF WELCOME LETTER, ACCOUNT STATEMENT AND ACCOUNT DORMANT AND REACTIVATION BY CSD:
Consumer Service Delivery (CSD) of the Bank in addition performs the following functions as enumerated below:
1. Issues congratulatory letters i.e. welcome letter to the new account holders by post.
2. Prepares centrally all monthly, quarterly account statements and dispatches it to individual Customer.
3. Some welcome letters of new account holders are returned undelivered due to improper address. Such accounts are kept inoperative. However these accounts are reactivated on receipt of requests from the Consumers.
3.34. ATM CARD PRODUCTION DEPARTMENT:
This is new department that is introduced in the service portfolio of BRAC Bank Limited. It started its journey form 15th April 2005. Through this service the clients are enjoying modern technology in withdrawing their money. It represents the development of banking sector in our country. BRAC Bank is offering this service to most of its client as early as possible. A well-trained work force is giving their level best effort to serve efficiently. There are different steps to complete the process of card production. Among the local bank BRAC Bank is the only one bank that is producing ATM card in their premises. Secura Pvt. Limited (Singapore) is providing blank ATM card to BRAC Bank. There is a card embossing machine that can produce around 1200 card per day. ATM card division is producing around 700 cards in different segment each day.
3.35. FUNCTION OF ATM CARD DIVISION:
Production of ATM Cards
Maintaining the stock of ATM Cards
Keeping record of produced cards
Reproducing Lost/ Stolen ATM Cards
Distribution of ATM Cards
Maintaining All database related to card production & distribution
Charging against issued cards
Resending returned cards
Maintaining the vault registrar
Coordination with IT in issuing Pin
Customer service through handling inquiry of the clients
Updating the request of address chance into access system
Maintaining reject till internal audit
Sorting out discrepant request branch wise and send back.
3.36. TYPE OF EMBOSSED CARDS:
There are different types of cards that are produced according to the management’s decision. The card division is producing cards only for savings and current accounts (Both individual & Joint A/C). ATM card division embossed 4 types of Cards such as:
Excising Client’s card in their name
Staff Card in their salary A/C
“Welcome to BRAC Bank” card
“Ezee Account”
Existing Client’s card: These cards are produced in CONSUMER name. The Person who has previous A/C with the bank receives this card. ATM card division gets a list of existing client from IT Department. According to that they produce card. Another way they receive request from different branches for which they produce card. For the first card the bank charge the client only taka 172.50 (Including 15% VAT). But for replacement they charge them taka 345 (Including 15% VAT).
Staff card in their salary A/C: These cards are produce only for those people who have salary account in BRAC Bank. These people ate the staff of either BRAC Bank Limited or any concern institute of BRAC. For these cards the bank does not cut any charges “Welcome to BRAC Bank” Cards” These cards are produced with the title embossed “Welcome to BRAC Bank”. These cards are produced for a new package named “Welcome to BRAC Bank” Consumer gets an ATM card in every pack. Charges are as like as it is for existing client. Consumer gets one chequebook with every package.
“Ezee Account” cards: These cards are produced with the title embossed “Ezee Account” These cards are produced for a new package named “Ezee Account”. In all “Ezee Account” CONSUMER gets an ATM card in every pack.
3.37. THE PROCESS OF CARD PRODUCTION:
Receiving request form/client list from branches/IT
Checking the request that received
Printing Consumer information (for daily request)
Confirming ATM & POS enable
Generating text file for production in to the system
Importing Data/Text files into Access card production system
Preparing card per-production report
Producing ATM cards in different segment
Generating card production report
Importing production report into database
Printing card holder
Preparing the cards for dispatch
Preparing dispatch database and voucher
Delivering cards to the courier service
Charging for ATM card
In case of replacement; cloning the card and producing a new one.
All these process are done automatically except delivery so there is very low risk in the total process.
3.37.1. PRODUCTION PROCESS:
Receiving request form /client list from branches/IT: Firstly the department gets a list from IT and/or request form the branches in daily basis. Then they sort out these requests according to their branch.
Checking the request that received: In this stage they check the whole request form or list and separate appropriate forms for next stage.
Printing Customer information (For daily request): In this stage they print CONSUMER information for each and every request form. They cross check the form with the printed information. They also segment joint a/c, salary a/c and replacement request
Confirming ATM: Importing Date/text files into Access card production system: After successful generation of text file they import them into access software to produce card.
Pre paring Card Pre-production report: After importing the date the system get prepared for card production. But to be confirming about successful production they print a card pre-production report. The report contains PAN Number, a/c number, a/c title and address of the customer. They attached this with the request.
Producing ATM cards in different segment: In this stage the date are ready for emboss. They give command in the system for production. In one batch the machine can produce 100 cards. After one batch they produce another batch. This the most important part of the production process. Due to technical fault of the machine many cards can come out faulty. So during this process one person always keep attention to the machine
Confirming ATM & POS Enable: After checking they confirm whether ATM & POS facilities are enabled for the a/c or not. If necessary they confirm ATM & POS Enable.
Generating text file for production in to the system: After confirming ATM & POS enable they generate text file in MBS (Millennium Banking System) and save it to BBLHQ Server. It is one of the important stages of card production system. Because if one entry is miss generated it can’t be generated in future. So they cross check the text file different time to avoid this situation.
Importing Data/text files into Access card production system: After successful generation of text file they import them into assess software to produce card.
Preparing Card per-production report: After importing the date the system get prepared for card production. But to be confirming about successful production they print a card per-production report. The report contains PAN Number, a/c number, a/c title and address of the Consumer. They attached this with the request.
Producing ATM cards in different segment: In this stage the data are ready for emboss. They give command in the system for production. In one batch the machine can produce 100 cards. After one batch they produce another batch. This the most important part of the production process. Due to technical fault of the machine many cards can come out faulty. So during this process one person always keep attention to the machine.
Importing Data/text files into Access card production system: After successful generation of text file they import them into access software to produce card.
Preparing card per-production report: After importing the data system get prepared for card production. But to be confirm about successful production. They print a card per-production report. The report contains PAN Number, a/c number, a/c title and address of the Consumer. They attached this with the request.
Producing ATM cards in different segment: In this stage the data are ready for emboss. They give command in the system for production. In one batch the machine can produce 100 cards. After one batch they produce another batch. This the most important part of the production process. Due to technical fault of the machine many cards can come out faulty. So during this process one person always keep attention to the machine.
Generating card production report: In this stage they generate a card production report, which contains PAN number, a/c number, a/c title. This stage completes the total process.
3.37.2. DELIVERY PROCESS:
Importing production report into database: This is the first step of delivery process. In this step they import the production report into database.
Printing card carrier letter: After preparing database they print card carrier letter in which the address of the client has been printed.
Preparing the cars for dispatch: Then cards are prepared for dispatch. All necessary documents are put inside of a window envelope and arrange them sequentially.
Delivery: This is the final step of delivery process. In this stage cards are handed over to the courier service for delivery. All the cards are delivered to the address of the client. Only staffs cards are send to the Gulshan branch. This is all about the production and delivery process of ATM card division.
3.37.3. SIGNATURE SCANNING DEPARTMENT:
This department is introduced in the service portfolio of BRAC Bank Limited from the first day of its business. Through this service the clients are enjoying modern technology in withdrawing their money. It represents the development of banking sector in our country. BRAC Bank is offering this service to most of its client as early as possible. A well-trained work force is giving their level best effort to serve efficiently. There are different steps to complete the process of Signature Scanning.
CHAPTER IV
JOB RESPONSIBILITIES
OF
TECHNOLOGY DEPARTMENT
4.1 DESCRIPTION OF MY TASK
In BRAC BANK LIMITED, I was appointed in ANNEX-1 Building where my main task was to provide Internal employee Information Service (IT-HELP). My works were mainly related with attain the employee phone call to know their IT-problems and try to solve over the phone/cell or if not then inform the respective department to solve and I was also performed some of the front office activities as well as some back office activities in Technology Department.
As an employee, had the following job responsibilities:
1. Help to know: I was instructed to help the employee who face the IT related any kind of problem. Here my responsibilities are:
• Listen to their problem.
• Try to understand their problem.
• If not understand then request them for mail or informed the respective person who able to solve.
• Provided different information regarding their necessary.
• Received the completed forms.
2. Help to solve: I was trend enough to solve their problem in primary stage on my level.
Here my responsibilities are:
• Share some information.
• Use Remote Area Software after knowing their PC IP and try to solve.
• If not possible for me then only inform the respective authorized person to solve.
• Make sure the problem are solved or not and take necessary action.
3. LIST of SUPPORTS
1. Office Account Creation
• GL Subhead creation (GLSHM)
• General Scheme creation (GSPM)
• Office Account Maintenance (ACMDB)
2. Branch Operation:
FDR DPS CASA
• Interest issue
• Closing issue
• Renewal issue • Interest issue
• Closing issue
• Standing Instruction issue
• Unfreeze related problem • Double charge issue
• Buffer issue
• SMS Banking Fee
• Excise Duty deduction
• Interest on Savings A/c
• Lien issue
• Closing issue
• Customer details change –
Name Address A/c status (active /inactive)
Related party etc
3. User Related
• New user id create (Finacle & Central MIS)
• PSO / RM / UNIT/ BRANCH code add, modify, delete
• User profile change
Profile deleted, User SAC
Modify user in case of going on leave/ coming after leave
User role id/application name/work class change as per approval
SOL change
• Limit Enhancement
o Transaction limit enhancement
o Temporarily enhance role id / work class (In absence of designated person)
4. Interest Rate
• Every week interest rate change (RFCD, NFCD)
• Product wise interest rate change as per instruction.
5. Transaction related problem
• Un-posted transaction
• Verification
6. Proxy posting / reversal
4.2 USER INFRASTRUCTURE SERVICES:
User Infrastructure Services is the most important unit of the Technology Department. They supported all branch and department. They supply PC, Printer, UPS and Hardware maintenance. When any problem comes in Technology Helpdesk they informed the User Infrastructure Services then they solved it. User Infrastructure Services Manager name is Mr. Mohammad Mahbub A Alahi.
Special Support Technical Service Application Support
SME Automation
Inventory Management Desktop
Printer
Server
Scanner
UPS (Desktop & Central)
Anti-Virus
All OS
Lotus Notes
Client Administration
WU Client Support • Lotus
Domain Attachment
Core Bank Support
WU
Desperado
All Applications
Voyager
IT Training
Hardware Assembly:
Each user in a different environment will have a different set of software and performance requirement. Troubleshooting quickly and effectively within the department or in branches like Dhanmondi, Mirpur, Gulshan and SME unit offices requires a lot of skill and time in the field.
Every computer is prepared and checked for the following:
• Hardware usability
• Software installation
• Network Connectivity
• Adjunct hardware
Following the abovementioned list as a checklist ensures that we don’t miss out on any technical aspect. Each of the preparation stages has been described in the following paragraphs.
Hardware usability:
Computer related hardware, old or new, is tested for smoothness in operation and this depends on various factors. The RAMs (Random Access Memory units) need to be checked if they are working fine. Some older units that are brought from SME unit offices do not power up at most times. In such cases, we usually check for a RAM or a power supply or a motherboard burnout. Step by step, we target the specific part that we would suspect and troubleshoot accordingly. The spoilt parts are usually changed with new available ones fixed.
A monitor that is not working is usually sent to the vendor for repairs and we try to claim its warranty if it is still valid. It goes for a printer after having checked the cartridges, the printing head and the rollers. As for the out of order scanners and other un-programmable devices, are sent back to the vendors for repairs.
Software installation:
1. Multitudes of software are in implementation in the bank’s computers. Banking applications software, operating systems, email applications and much more are already in use. The software programs I worked on have been described in the following paragraphs.
2. Operating systems like Windows 98, Windows 2k, Windows 2000 Server, Windows 2003, Windows XP, VISTA and Microsoft SQL server. Documentation software like MS Office 2000/2003/XP along with MS Access and FrontPage were also installed. The installations were made on either newly acquired computers and servers or older faulty machines that had to be reconfigured. The installation disks were available with Mr. Mahbub A Alahi, and were installed either in the department or at the user’s workplace.
3. Lotus Notes mail client installation is very important. The software is an emailing service sold by IBM and BRAC Bank Ltd. had to buy it in order to implement an emailing service within its network. The Lotus Mail Client enables email correspondence between all the branches and SME unit offices owned by the bank. The software is managed by an IBM Lotus Domino server present in the IT departments Server Room. Every computer in the network (all branches and SME unit offices), have installed in them a Lotus Notes client and thereafter each of them has the privilege of accessing the main application file in the main Lotus Domino server. The Notes client is mainly used as an email client, but also acts as an instant messaging client, browser, notebook, and calendar/resource reservation client, as well as a platform for interacting with collaborative applications.
4. Since, every user is connected to the bank’s own network domain; they are needed to access an email service system provided by one of the servers in the IT department. The software retains day-to-day emails in an archived format in a system folder. There are cases when the Lotus Notes client fails to operate in computers due to a virus or an inappropriate installation of another program or
5. Due to a power surge. In such cases the Lotus software is uninstalled after having a backup of the older mails and then reinstalled and linked to the mails.
6. Antivirus installation is another important aspect. Currently e-Trust anti-virus is being installed in every computer within the network and the updates to the software are downloaded from one of the main servers of the IT department. New virus definitions are downloaded by the Network Team and stored in the anti-virus server so that later on, every client using e-Trust anti-virus can automatically update its virus definitions and stay protected from mal-ware. Every new and repaired computer is installed with the software, as it is a must in order to maintain network security.
7. Finacle, a piece of software developed by Infosys (well reputed Indian company), is Centralized Core Banking Software, which uses a single physical database across all the branches of the bank. The main Finacle application file is setup in a single server in the Server Room, and applied to all the accounts across the branches. The end user software is browser based. During a transaction, the teller accesses the browser-based software, which immediately connects to the main Finacle application file within the centralized application server. Next, the main centralized application gets downloaded to the bank officer’s terminal on his browser automatically. Ideally this should be written in Java Applets as they allow for encrypted data and compressed data movement between the client machine and the server machine. As part of the hardware team, I was involved in maintaining the Java Applets. By maintaining a certain tuning protocol in the Java Runtime Environment, the Java Applets can be enabled for Finacle to run. Troubleshooting was done even at teller level to get the application running smoothly for regular transaction. Also, a small Finacle based software called I-link-Web was installed and maintained. The main purpose of the program is to help print balance and account details from browser based pages.
Printer Legal Page
• Start—— Setting——-Printer and Faxes——– File——-Sever Properties—– Enter.
Save From —– Close.
Step 2
• Start—— Setting——-Printer and Faxes.
Format Change——
4.3 BANKING APPLICATION:
1. . Modify the Standing Instruction from FINACAL
Manu ONS Manu HACLI Change SI Flag
2. Office Account Creation
Step 1: Place Holder creation
1. Type APHM at the main menu and press ‘enter’.
2. New screen will appear called “Account Placeholder maintenance”. Function: Select ‘Add’. Then enter A/C Placeholder, Description, and scheme type then press F10.
Step 2: GL Subhead creation (If GL Subhead not created before then step 2, step 3, step 4 are required)
1. Type GLSHM at the main menu and press ‘enter’.
2. New screen will appear called “GL Subhead maintenance”. Function: Select ‘Add’.
Then enter GLSH code, GL- Subhead Description, GL code then press F10.
Step 3: GL Subhead code Replication
1. Type GLSHR at the main menu and press ‘enter’
2. New screen will appear called “GL Subhead Code Replication”. Enter Source SOL ID, Target SOL Set ID, CCY, Source GL Sub Head Code. Press F10.
Step 4: General Scheme Parameters Maintenance
1. Type GSPM at the main menu and press ‘enter’
2. New screen will appear called “General Scheme Parameters Maintenance”. Function: Select ‘Add’. Enter Scheme code, Scheme Details, then Press F4. Option: type H. press F4.
3. New screen will appear called “General Scheme Parameters Maintenance-GL Subhead Codes Maintenance”.
Enter GLSH, and then press down arrow -> F4 -> F10.
Step 5: Office Account Maintenance
1. Type ACMDB at the main menu and press ‘enter’
2. New screen will appear called “Office Account maintenance”. Function: Select ‘Add’. Then enter A/C ID, CCY, GLHS code, Scheme Code then press F4
.
3. Enter A/C Head Name, Place Holder, A/C Partitioned, ANW non-Cust. A/C Alwd, Tran from other SOL Alwd, press F4.
4.Visit Option Code: G, A, S and then press F10.
Step 6: Office Account Replication
1. Type OACR at the main menu and press ‘enter’
2. New screen will appear called “Office Account Replication”. Enter Source SOL ID, Target SOL ID, while replicating the A/C, Overwrite the A/C ID with, between Positions (1), A/C ID and then press F10
3. After replication to see Print Report for confirmation type PR at the main menu.
4. Type T & Press F10
Record Added!
Your Case Id is 3442!
Please keep your case id for future reference
4.4. SYSTEM ADMINISTRATIOR:
For existing old Lotus Notes users we need to rename old lotus notes client folder for installing new notes client. Please follow the steps below to ensure users existing Lotus Notes data and configuration is safe while installing the new Lotus Notes7.
1. On user Desktop, Right click on Lotus Notes shortcut icon to go to Properties and check the Target box, here you can find the directory where existing Lotus Notes is installed
2. Go to the directory where Lotus Notes is installed and rename the folder name. For example if the directory is c:\Lotus; rename it to c:\Lotus.bak
3. As you rename the folder, the following confirmation prompt will appear, click Yes.
4. Now go to Windows Control Panel, run Add\Remove Programs and uninstall any Lotus Notes version installed. Uninstaller will show an error that Lotus Notes folder is not found. Click OK; this will uninstall the software however the data and configuration won’t be deleted. (Note: If you don’t rename the old Lotus Notes folder before un-installation, users mail and configuration saved on local drive will be lost)
Installing Lotus Notes 7 client:
1. Go to Y:\Masum\Lotus 7\Clients\W32Intel and run Setup.exe
2. Installation wizard will begin installation, click Next to continue
3. Accept the license agreement and click Next
4. Enter username and organization name then click Next
5. Change the program files directory to D:\Notes7 and data directory to D:\Notes7\Data
6. Leave the default installation options and click Next
7. Make sure the following check box is clicked to make notes the default mail client and click Install
8. Installation begins here; you can check the progress bar
9. Click Finish to complete the installation.
Configuring Lotus Notes client:
1. Running the program for the first time will start the Lotus Notes Client Configuration wizard, click Next to begin configuration.
2. Enter the name of the Lotus Notes user as specified by the administrator and enter mbdho01.bracbank.com as Domino Server. (Make sure the checkbox to connect to domino server is checked)
3. Enter the password of the Lotus Notes user; please contact the administrator to collect the password (Note: the user ID will be automatically collected from the domino server for first time configuration of individual Lotus Notes user. You will have to select the user ID for later configurations).
4. Instant Messaging configuration option will appear, uncheck the Setup instant messaging box and click Next
5. Additional services configuration options appear, leave the defaults and click Next
6. Basic Lotus Notes client configuration is complete and following popup appears, click OK
6. For welcome page setup, check the default page
7. From Bookmarks select Databases tab, right click on Workspace and select Set Bookmark as Home Page. There will be a prompt for confirmation of current welcome page replace, click Yes (this will set the workspace as welcome page)
8. Now we need to set location preferences, click on Office location and select Edit Current… to edit Office location preferences
10. Go to Ports tab and make sure only TCPIP port is selected.
11. We need to set the Mail tab properties as shown below. To optimize network and Lotus Domino server performance we will configure to use mail file on local drive.
12. Set the replication options as shown below
13. As have set to use local mail file, which will replicate in every 5 minutes and transfer outgoing mails as soon as 1 sent mail is pending, we can remove the server mail file icon from workspace. Select the server mail file icon and click Remove From Workspace
14. This is it, we are done configuring the new Lotus Notes client for Domino 7 server.
To work with the old Lotus Notes:
1. Rename the folder to original; for example, from C:\Lotus.bak to c:\Lotus. Go to Notes folder and create a shortcut on desktop for Notes.exe file.
2. Rename the shortcut to uniquely identify the new and old Lotus Notes
CHAPTER V
ANALYSIS OF FINANCIAL
STATEMENT & POSITION
5.1. ANALYSIS OF FINANCIAL STATEMENT:
Interest income for the period has increased by 71% because of increase of loan by 61% and investment income by 93% over previous year; because of change in investment mix and inclusion of long term nature BGTB at higher interest rates. These factors cause the significant increase in operating margin over previous year.
5.1.1. ECONOMIC VALUE ADDITION:
Economic value addition is a measure to calculate the economic value by the enterprise to the stakeholders. In computing economic value addition, economic profit and contribution to Government Exchequer are considered.
5.1.2. ECONOMIC PROFIT:
Economic profit is a residual measurement, which subtracts the cost of capital from the net operating profits after tax generated in the business. The Bank’s internal performance measures include economic profit, a calculation, which compares the return on the financial capital invested in the Bank by its immediate sponsors of the Bank with the cost of the capital. The Bank prices its cost of capital internally and the differenced between the cost and post-tax profit attributable to the ordinary shareholders represents the amount of economic profit generated. The management as one of the measures to decide where to allocate resources so that they will be most productive uses economic Profit.
5.1.3. SHAREHOLDER’S EQUITY:
The Shareholders’ equity has increased by 45% over previous year. Paid up Capital of the Bank is being raised from 1000 million to 1200 million in the year 2007 through issuance of bonus shares out of retained earnings in 2007. Besides this the Bank also issued preference shares of Tk. 350 million in the year 2007. The statutory reserve also increased by Tk. 252.88 million over previous year balance of Tk. 251 million. The Board of Directors recommended for raising paid up capital by issuing right share 1(One) for every 5(Five) shares held at Tk.500/- each including premium of Tk. 400/- subject of regulatory authorities and EGM. However, Bank also proposed stock dividend of 10%, which noticeably increase the capital base of the Bank.
The Shareholding position in 2007 is as follows:
Shareholding of general public has increased to 47.11% due to release of NRB and mutual funds. Shareholdings of others remain as usual of previous year.
5.1.4. CAPITAL ADEQUACY:
The Bank attained contentedly adequate capital of 12.28% compared to the current regulatory requirement of 10.00%.
*Capital Core (Tier I) includes Paid-up Capital, Share Premium Account, Statutory Reserve and Retained Earnings.
** Supplementary Capital (Tier II) includes General provision (on unclassified loans), Preference share and Exchange Equalization Fung.
5.1.5. TOTAL ASSETS:
Total Assets of the Bank rose to Tk.46382.59 million in 2007 from Tk.30011.82 million in 2006 registering a growth of 54.55%. Significant increases in assets documented in loans and advances, investments, fixed assets and cash assets maintained by Bank.
5.1.6. SOURCES AND APPLICATION OF FUNDS:
Main source of fund is customer deposits, which composes 81% of the total fund. Bank’s major funds are utilized in loans & advances and investment comprising around 70% and 11% respectively of total funds available to the Bank. A portion of fund is maintained in the form of cash and cash equivalents to maintain CRR and SLR, which is about to 13% of total fund.
5.1.7. LOANS AND ADVANCES:
Loans and advances increased to Tk.32461.10 million in 2007 from Tk.19557.17 million in 2006, thereby registering a growth of 65.99%.
SME sector, the main concentrated area for the Bank financing since its inception, comprises of 58.58% of the total loans and advances.
5.1.8. DEPOSITS:
Customer deposits of the Bank grew by 62.46% in 2007. The Bank ended by the year 2007 with total customer deposits of Tk.37368.41 million compared to Tk.23001.92 million in the year 2006.
5.1.9. DEPOSIT MIX OF BANK STANDS AT THE FOLLOWINGS:
Currently, the Bank’s deposit mostly comprises of fixed deposits. Since, almost 84% of total deposits are in the form of fixed & savings while only 15% are in the form of current deposits. This deposits mix scenario is quite similar to that in the previous year.
Credit Concentration is shown in the following pie-chart to elaborate the area of concentration of concentration of loans and advances about 37% of total loan portfolio concentrated outside Dhaka.
5.1.10. COST OF DEPOSITS:
The Bank’s cost of deposits is pretty much consistent over the years to maintain a steady spread. Cost of deposit is a higher compared to that of previous year because of highest concentration of fixed deposit to support business growth, scarcity of fund, present political and economic scenario of the country.
5.1.11. INVESTMENTS:
The Bank’s investment, during the year 2007, were made mostly in government securities which stood at Tk.4996.86 million as on December 31, 2007 as against Tk.3768.01 million in 2006. Out of total investment, 94.18% is concentrated in Government Treasury bills and bonds to maintain CRR and SLR of the Bank comfortably and to use of our surplus fund in a cost effective means.
5.1.12. EARNING PER SHARE (EPS):
Earning per share stood at Tk.54.95 as on December 31, 2007 compared to Tk.29.38 at the end of the previous year, which is restated because of issuance of bonus shares during the year.
5.1.13. NON-FUNDED INCOME:
The Bank is focusing on to increase its non-funded income and to reduce its burden ratio that resulted in 52.19% growth in 2007 over 2006(Tk.791 million in 2007 against Tk.519.73 million in 2006).
5.1.14. REVENUE PER EMPLOYEE:
Trend of revenue per employee is gradually increasing over the last five years except in the year 2006 as recruitment in that year was mainly done last quarter of the year; hence revenue per employee had been slightly lower. Revenue per employee is shown in thousand Taka.
5.1.15. OPERATING COST PER EMPLOYEE:
Operating cost per employee increased in the year 2006 due to recruitment of a number of loan staff as well as launching of new branches during that year.
5.1.16. COST TO INCOME RATIO:
Cost to income ratio has been lower from 75.76% to 45.14% during the last five years because of efficient cost management. However, another achievement was apparent in the year of 2007 curtailing cost to income ratio from 49.44% in 2006 to 45.14% in 2007.
5.1.17. OPERATING COST AS A PERCENTAGE OF LOANS & ADVANCES:
Operating cost of the Bank is consistent over last five years. It remains around 6% to 9% of total average outstanding loans and advances.
5.1.18. CONTRIBUTION TO NATIONAL EXCHEQUER:
BRAC Bank has contributed much to the national economy in collecting Government revenues and depositing the same to Government Exchequer according to prescribed laws prevailing in the country. Bank authority deducts tax, VAT and excise duty timely at the time of making payments for goods and services.
5.1.19. SHAREHOLERS’ VALUE AND MARKET PRICE INFORMATION:
BRAC Bank management is always striving towards improving value of shareholders by increasing its earning based asset that would generate income in future. The management team under the guidance of Board of Directors is fully committed to create a very positive impression to the investors to be one of the leading Banks by excelling in deliveries. Reported market price of shares of BRAC Bank Limited in Dhaka Stock Exchange is Tk.1612 on close of the business of the year 2007. The Bank’s market capitalization at 31 December 2007 was Tk.19344 million, which is 3.07% of total market capitalization of DSE (source of information: monthly review of December, 2007).
5.2. FINANCIAL POSITION:
5.2.1. RETURN ON ASSETS:
5.2.2. LEVERAGE:
5.2.3. RETURN ON EQUITY (ROE):
5.2.4. BREAK EVEN YIELD:
5.2.5. INVESTMENT / TOTAL ASSETS RATIO:
Portion of total assets invested in securities, which provide interest or income.
5.2.6. BORROWED FUNDS / TOTAL LIABILITIES RATIO:
Reflects banks indebt ness through the use of borrowed funds.
5.2.7. ASSET GROWTH RATE:
{(Total assets for present period -total assets for prior period)/total assets for prior period}*100
This is a good sign for the bank.
CHAPTER VI
FINBING
6.1. GENERAL FINDINGS:
On the basis of previous analysis and practical experience of 3 months internship program, the following findings are observed during the research period:
Skilled human resource in every department
Inadequate work force
Lack of proper coordination among different departments.
Inadequate facilities of Ascend Millennium Banking System.
Conservative Management.
Unauthorized use of different ID in system.
Lack of motivation and training program.
Absence of proper guideline/ planning of respective job.
No structured reconciliation process.
Limited knowledge about PC and related software.
Duplication of work like; checking and over documentation.
Less secured than the department should be.
Less structured than other departments.
Day by day new upcoming banks are coming with many new services, which are a threat for the bank. So increased number of new bank creates sever competition in consumer service.
Policy Implication
As I have gone through all the departments under CSD (Consumer Service Delivery). I have come up with some points, which can improve the efficiency as well as quality of the work. The points are as below;
Setting proper planning for each and every work as well as for the whole department.
Designing jobs on priority basis.
Assigning necessary manpower for every job.
Proper maintenance of files and necessary files and documents on daily basis.
Proper managerial observation and cooperation.
Separating Card department and concern operation.
Avoiding duplication through accuracy and efficiency.
Developing motivational program and training program.
Ensure that every one working in Software knows it properly and giving them personal ID.
And most of all change of managerial attitude and view point.
Privacy Commitment:
In the course of using this website or availing the products and services vide the online application forms and questionnaires, BRAC Bank and its Affiliates may become privy to the personal information of its customers, including information that is of a confidential nature.
BRAC Bank is strongly committed to protecting the privacy of its customers and has taken all necessary and reasonable measures to protect the confidentiality of the customer information and its transmission through the world wide web and it shall not be held liable for disclosure of the confidential information when in accordance with this Privacy Commitment or in terms of the agreements, if any, with the Customers.
BRAC Bank endeavors to safeguard and ensure the security of the information provided by the Customer. BRAC Bank uses 128-bit encryption, for the transmission of the information, which is currently the permitted level of encryption in Bangladesh. When the information provided by the Customers is not transmitted through this encryption, the Customers’ system (if configured accordingly) will display an appropriate message ensuring the best level of secrecy for the Customers’ information. The Customer would be required to cooperate with BRAC Bank in order to ensure the security of the information, and it is recommended that the Customers necessarily choose their passwords carefully such that no unauthorized access is made by a third party. To make the password complex and difficult for others to guess, the Customers should use combination of alphabets, numbers and special characters (like!, @, #, $ etc.). The Customers should undertake not to disclose their password to anyone or keep any written or other record of the password such that a third party could access it. BRAC Bank undertakes not to disclose the information provided by the Customers to any person, unless such action is necessary to:
• Conform to legal requirements or comply with legal process.
• Protect and defend BRAC Bank’s or its Affiliates’ rights, interests or property.
• Enforce the terms and conditions of the products or services. Or
• Act to protect the interests of BRAC Bank, its Affiliates, or its members, constituents or of other persons.
The Customers shall not disclose to any other person, in any manner whatsoever, any information relating to BRAC Bank or its Affiliates of a confidential nature obtained in the course of availing the services through the website. Failure to comply with this obligation shall be deemed a serious breach of the terms herein and shall entitle BRAC Bank or its Affiliates to terminate the services, without prejudice to any damages, to which the customer may be entitled otherwise. BRAC Bank will limit the collection and use of customer information only on a need-to-know basis to deliver better service to the customers. BRAC Bank may use and share the information provided by the Customers with its Affiliates and third parties for providing services and any service-related activities such as collecting subscription fees for such services, and notifying or contacting the Customers regarding any problem with, or the expiration of, such services. In this regard, it may be necessary to disclose the customer information to one or more agents and contractors of BRAC Bank and their sub-contractors, but such agents, contractors, and sub-contractors will be required to agree to use the information obtained from BRAC Bank only for these purposes. The Customer authorizes BRAC Bank to exchange, share, part with all information related to the details and transaction history of the Customers to its Affiliates / banks / financial institutions / credit bureaus / agencies/participation in any telecommunication or electronic clearing network as may be required by law, customary practice, credit reporting, statistical analysis and credit scoring, verification or risk management and shall not hold BRAC Bank liable for use or disclosure of this information.
CHAPTER VIII
CONCLUSION
We moved a long way from the time when the banks were deposit taking and money-lending institution. The old concepts, attitudes and methods in banking have undergone a marked change all over the world. Modern Banking is an outcome development driven by changing financial activities and lifestyle. Bangladesh has not lagged behind. Banks are required to participate in the nation building activities and act as agent for bringing about socioeconomic changes.
Entering as a new bank in private banking scenario of Bangladesh, BRAC Bank is constantly try to cross the obstacles regarding typical business oriented ideas and come up with innovative curtailed to its Consumers need to harvest maximum benefit for them.
BRAC Bank Limited is a third generation bank inaugurated on 4 July 2001 with a mission of providing best banking service in the country to enhance economic activity. n the world of global economy, banking needs have become more diverse and exotic than ever before. In this regard BRAC Bank promises to fulfill every possible Customer needs with high quality service and satisfaction. This success has resulted from the dedication, commitment & dynamic leadership of its management over the periods. To become market leader in providing banking services, introduction of sophisticated banking instruments i.e., an online banking service, ATM services is a demand of time.
BRAC Bank is maintaining its competitiveness by leveraging on its Online Banking Software and modern IT infrastructure. It is the pioneer amongst the local banks in introducing innovative products like SMS Banking.
I was authorized to prepare a report on central function of BRAC Bank Ltd. for partial fulfillment of my course requirement. I went to BRAC Bank Limited, Head Office, where I worked as an intern from June 04,2008 to September 03,2008. It was a great experience for me to have exposure in the practical field. As a new bank it has a long way to go. There is huge pressure of work in BRAC Bank Limited hut the coordination that I get some officials was very helpful for me.
Though having some drawbacks the bank’s overall performance is satisfactory. I wish a prosperous future for the Bank.
